MSME Registration

MSME Registration.

MSME registration or Udhyog  Aadhaar can be obtained by any type of business entity, namely, Proprietorships, Hindu Undivided Family, Partnership Firm, One Person Company, Limited Liability Partnership, Private Limited Company, producer Company, Limited Company, co-operative societies, and any association of persons,  or any other undertaking Enjoy various benefits under the Micro The Small businesses having MSME registration, The Small and Medium Enterprises Development Act, 2006. Derive Udhyog Aadhaar or MSME registration is not essential and is at the sole discretion of the Entrepreneur. However, it is recommended that most businesses obtain MSME/SSI/Udhyog  Aadhar registration right after its formation to enjoy various benefits like protection against delayed payments under the MSMED Act.

1. Easy finance availability from Banks, without collateral requirement
2. For  SMEs Govt providing payment  to the SMEs within 45 days and protection against delay in payment from Buyers and right of interest on delayed payment with the reason for non-payment by the company through MSME form-1
3. Preference in procuring Government tenders,
4. Stamp duty and Octroi benefits,
5. Concession in electricity bills
6. Reservation policies to manufacturing/production sector enterprises
7. Time Limit settlement/resolution of disputes with Buyers through conciliation and arbitration.
8. Reimbursement of ISO Certification Expenses
9. Easly availability of credit Limit/ Business loan from Priority sector lending with differential rates of interest, easy discounting of bills through the online system established by RBI, etc.
10. Excise Exemption Scheme
11. Exemption under Direct Tax Laws.
12. NSIC has set up a testing facility for providing financial assistance to SMEs.
13. There is the provision of MSME if the buyer delayed in payment of the invoice within 45 days from the date of invoice the buyer liable for interest payment through Statutory support.
    

• Piling of interest: The first demerit is the interest amount to be paid. Interest to be paid is piled up in case of loans.
• Tedious procedure while applying for loans: Although the percentage of approval of the loan percentage is high, the procedure for sanctioning is tedious.
• High credit score: As discussed above, most of the loans are not require collateral.

Registration Process

MSME registration process is growing rapidly growth process in India over the past year, Every sector is being applied for registration under the MSME act, after seeing this tremendous growth of SMEs Government are providing various benefit scheme to the SMEs.

After identifying the category of SMEs with the required few documents and details about the entity and authorized persons/KIP, Entity can be registered only at the website https://udyamregistration.gov.in with the prescribed form.

MSME Registration is paperless and based on self-attestation documents

• MSME registration process is fully online/digitalized, paperless, and based on self-attestation.
• No Need to upload any documents or proof.
• Only Adhaar Number required for registration and aadhar no must contain/ link mobile no for OTP.
• PAN & GST must like with ITR files by the business entity so that data of investment and turnover of enterprises will be verified automatically from Government databases.
• PAN & GST number is mandatory from 01.04.2021 for MSME Registration.
• Those entities who have previous  EM-II or UAM registration or any other registration issued by the previous MSME Act they will have to re-register themselves again.
• An Enterprise can obtain only one Registration. In one registration any number of business activities can be added like including manufacturing or service or both may be specified or added in one Registration.

MSMEs have few qualified staff working for them on a full-time basis.
Here collateral role for CA professionals is very secure. Through most of these schemes, Government extends subsidies. Creating awareness about schemes; identifying application forms, filling in and filing a timely application for subsidies with designated authority; submitting replies to subsequent queries, if any; successfully closing the matter are activities envisaged for CA professionals.