For completing MSME registration, bring only Pan and Aadhaar Cards

Are you planning to venture into a new business? Be it small, medium, or micro-enterprises, there is good news for all of them. The MSME registration of the enterprises has become more manageable now. That is what you will read on here.

In an event, Shri Gadkari said,” Only an Aadhaar and Pan card is enough for the registration of MSMEs.” Stressing more, he explained the need for registration and after which the finance is offered for the firms. Also claiming that “He shall fully support the MSME businesses and assured that the NFBCs and banks would aid financially in the growth of the enterprises. 

The country’s social and economic condition is severely impacted by the COVID crisis currently, and restoring it is possible by the set up of the new MSME. It can also increase employment opportunities for the people.

With that being important, the need for training the employees in developing necessary skills is a must. To promote entrepreneurship in the country is to, in turn, develop economic activities. Hence, the government is ready to offer an incentive package to the MSME, offering 20  crores worth of rupees through a program  called “Atmanirbhar Bharat Abhiyan.”

What is MSME Registration?

MSME is not just a sector giving out jobs to people but also focuses on developing the country’s economy to industrialize the rural sectors. Registration isn’t a mandatory requirement. But indeed, it is beneficial to opt for the privileges and support aided by the government.

The MSME act was into existence in 2006 to support the growth of the small and medium sectors. As earlier, both the manufacturing and service were considered different as the necessary investment differed.

Mrs. Nirmala Sitharaman, the finance minister, revised the rules and removed the difference between the two sectors by discarding the limits in the investment. As per the new amendment recently on 13th May 2020.

The benefits from this act are as follows:

1. All loans at a lower rate from the bank.
2. The government provides exemptions and tax rebates.
3. Credit can be carried forward for MAT.
4. They offer numerous tenders.
5. Obtaining a credit facility becomes easier.
6. Industries registered under this act are given first preferences.
7. Aspects contributing to the growth are offered.
8. Assistance is provided in receiving collateral-free loans.
9. One gets qualified to reimburse the charges of ISO certification.

Here are the eligibility criteria for MSME registration.

One is eligible to register under the MSME act as long as they have an investment of fewer than 20 crores and the turnover must be less than 100 crores. In the case the investment limit exceeds, they are asked to cancel the registration made. And also, the registration for MSME must either be from either of the two sectors ii.e.service or manufacturing.

Also, satisfying the below one or more belo criteria can be eligible to register as well.

1. One must have a partnership that is of limited liability.
2. It must be a limited private organisation.
3. One must be a sole proprietor.
4. Having a production company.

Want to know how to register the MSME?

1. The udyogaadhar.co.in.is the MSME registration website where you need to start.

2. Fill up the form given on the portal with the necessary details. Here only ADHAR and Pan card is essential for the registration process.

3. Now it’s when you receive a registration number and have to pay an online fee for registering. 

4. With the confirmation of the payment in a day or two, the government registers your business as an MSME.

5. At the registered email address, you shall finally receive the certificate of MSME registration once the registration is successful.

It is that simple to register the MSME business now by following the above simple requirements to initiate the process.

Final Thoughts

The advantage of being a firm under this act has a lot of benefits, as mentioned above. On the other hand, the government holds the responsibility to promote the companies under The SME act. Due to the recent developments in the act, registration has become now simple just by having two of the documents. Also, what’s interesting here is it ensures credibility and clarity to run the enterprise. District industries center takes care of issuing the certificate for the MSME organizations s. Every state has one department assigned to manage the operations. Some of the examples of the industries that are under this act are DFM Foods, Mynd Solutions, SStorageWarehousing and Collateral Management Emmbi Polyarns, Ankur Scientific Energy Technologies, SL Packaging, Molecular Connections,  Chem Process System, and  Aastha Minmet India. So, if you are a manufacturing or service company, start being a part of this act and avail the benefits that the government offers to flourish the business.