What is the fee for MSME registration

Tirupati

(Sriram Y) (December 20, 2020)

What is MSME?

The Government of India enacted the Micro, Small and Medium Enterprise Development Act (MSMED) of 2006, which defines micro, small and medium-sized enterprises as follows:

Companies that manufacture or manufacture, process or preserve goods as stated below:

  1. A micro enterprise is one where investments in machinery and equipment do not exceed £ 25.
  2. A small business is one where the investment in machinery and equipment is more than £ 25 lakh but not more than £ 5 crore;
  3. A medium-sized enterprise is one that invests in equipment and machinery is more than £ 5 crore but not more than £ 10 crore.

In the case of the companies mentioned above, investments in machinery and equipment are the original costs excluding land and buildings and objects. The Ministry of Small Industry published its notice no. SO1722 (E) of October 5, 2006.

Companies involved in the provision or rendering of services and their investment in equipment (original cost excluding land and buildings, as well as furniture, fixtures and fittings and other items that are not directly related to the service provided or that can be reported under the MSMED Act 2006 are given below.

1. A micro enterprise is a company where the investment in equipment does not exceed £ 10;

2. A small business is one in which the investment in equipment is more than 10 billion rupees but not more than 2 crore.

3. A medium-sized enterprise is one where the investment in equipment is more than £ 10 billion 2 crore but not more than 5 crore.

Benefits of MSME Registration

1. Due to the MSME registration, the bank loans become cheaper as the interest rate is very low at ~ 1 to 1.5 \%. Much lower than the interest rate on regular loans.

2. In addition, the credit for the minimum alternative tax (MAT) could be carried forward for up to 15 years instead of 10 years.

3. Once registered, the cost of getting a patent or the cost of starting the industry is reduced because so many discounts and concessions are available.

4. Registering MSMEs helps with the easy capture of government tenders as the Udyam registration portal is integrated with the government e-marketplace and various other government government portals that allow easy access to their marketplace and electronic tenders for unpaid time settlement fee MSME amounts.

Documents required for MSME registration with Udyam.

  1. Aadhar card of the holder of the company.

( Aadhar Card must be the registered phone number as you need to enter OTP which will be sent twice to the registered phone number on the Aadhar card to complete the registration. )

If you have not updated the phone number on Aadhar card, please visit the registration center closest to you.

2. Personal account number (PAN card) and GSTIN.

According to Udyam website ( PAN card and GSTIN numbers are (currently optional) , but mandatory form March 31, 2021.

If you have already registered without PAN and GSTIN and have not updated on the Udyam registration website by March 31, 2021, your registration will be suspended. )

If you don't have a PAN card and GSTIN number, you can apply online using the links. Apply for PAN card online, apply for GSTIN online.

3. Further details required for registration:

  1. Bank account number, IFSC code.
  2. Phone number and email id for the contact details.

How to register for MSME online for free.

  1. First you need to go to https://udyamregistration.gov.in/, this website is owned and maintained by the Government of India. As you can see in the website url under dot gov can see.
  2. If you are a new user, click on " For new entrepreneurs who are not yet registered as MSME or are those with EM-II ”.

3. Then you need to enter the Aadhar card number and name on the Aadhaar card. If the two match from the Aadhar website, you will be given a one-time password (OTP) for your registered phone number on the Aadhar card.

4. After entering the OTP you will be asked to Organization type to enter. You need to enter the PAN card details. (If you don't have a PAN, choose NO).

When you have entered PAN details, you will be asked for some additional details.

Note: If you have a GSTIN number, click Yes. and fill in the details. We did not use a GSTIN number for this article.

The entry of GSTIN is mandatory from March 31, 2021.

If you have not entered the PAN details, you will not be asked for the additional details above.

5. In this step, give some more like

Once the details are entered, click on “Submit and Get Final OTP”, the MSME will be registered and a message indicating successful registration with the reference number will be displayed.

After verification of the registration, which can take a few days, the Udyam registration certificate will be issued.