Understanding MSME

Micro, Small, and Medium-Sized Enterprises are more commonly referred to as MSME. The foundation of the Indian economy is MSMEs. More than 6 crore MSMEs, which operate covertly in various regions across the nation, are essential to the development of a more powerful and independent India. The GDP of the nation is significantly impacted by these modest economic drivers.

In this era of economic prosperity that we are currently experiencing, MSMEs have proven to be the backbone of the new India and its growth engine. MSMEs have gradually contributed to the resurgence of the artisan class in the remote areas of the nation by giving them jobs, which in turn gave them access to loans and other services. They have sparked the modernisation of the nation as a whole and continuously promote the growth of the nation’s infrastructure and technology.

CURRENT CLASSIFICATION FOR MSME’S (w.e.f. 1^st July 2020)

HOW TO REGISTER AS AN MSME?

To register as an MSME (Udyam) all it takes is to file a web-based online form wherein the applicant is required to have an Aadhaar card along with a linked mobile number to get it certified.

DOCUMENTS REQUIRED FOR MSME REGISTRATION

The business entity has to submit several documents which are required for MSME registration. These include:

• Business address proof
• Purchase bill and sales bill copies
• Partnership deed/Memorandum of Association/Articles of Association
• Copies of bills and licenses of machinery bought for use

HOW TO CHECK THE STATUS OF YOUR REGISTRATION?

• You can check the MSME registration status using the reference number and name. Given below are the steps to be followed:
• Visit the official portal for MSME registration by clicking here.
• Enter the 12 digit UAM number and then the verification code as shown in the CAPTCHA image.
• Click ‘Verify’ to check MSME registration status.

BENEFITS OF REGISTRATION AS MSME (UDYAM)

1. MSME enterprises can get finance facilities from Banks without collateral requirements
2. Schemes by the Central Government for the development of MSMEs
3. Subsidies and Government Schemes to promote specific industries
4. Reservation of Products to be produced by MSMEs only
5. Concession/ subventions on Bank Interest and Debt servicing
6. Concession on Taxation
7. Preference in procuring Government tenders,
8. Stamp duty and Octroi benefits,
9. Concession in electricity bills
10. Reduced fees for Trademark registration
11. Reservation policies to manufacturing/ production sector enterprises
12. No more delayed payment troubles
13. Time-bound resolution of disputes with Buyers through conciliation and arbitration
14. Reimbursement of ISO Certification expenses
15. Foreign Business Expo
16. Facilities for Upgradation of Technology used in the industry