HOW TO REGISTER AN MSME IN INDIA?

In a developing country like India, Micro, Small and Medium Enterprises (MSME) industries are the foundation of the economy. When these industries develop, the economy of the country grows and thrives. These industries are also comprehended as small-scale industries or SSI’s. It is inconsequential whether the Company is in the manufacturing range or the service line, since to Register an MSME under both these fields can be acquired through the Micro, Small and Medium Enterprises Development Act, 2006 (MSME Act). To Register an MSME is not compulsory but it is simple and provides many advantages in terms of taxation, setting up the business, credit installations, loans, etc.

Register an MSME Online: Process

Registration of an MSME can be comprehensively done online. One can also Register an MSME online through the government portal of udyamregistration.gov.in. The registration of MSMEs can be done under the following two classifications on the website –

1. For New Entrepreneurs who are not Registered as MSME yet or those with EM-II and;
2. For those having registration as UAM and for those already having registration as UAM through Assisted filing.
   1. For New Entrepreneurs who are not Registered as MSME yet or those with EM-II: <br/ >New entrepreneurs and entrepreneurs holding EM-II registration shall select the option “For New Entrepreneurs who aren’t Registered yet as MSME or those with EM-II” displayed on the home page to Register an MSME. Fresh registration of MSME is served by providing the Aadhaar card number and PAN number. When clicked on the “For New Entrepreneurs who aren’t registered yet as MSME or those with EM-II” option on the homepage of the government website, it opens the page for enrollment and asks to provide the Aadhaar number and the name of the entrepreneur. After filling in this information, the “Validate and Generate OTP option” is to be clicked. Once, this option is selected and OTP is received and entered, the PAN Verification portal opens. Upon which, the entrepreneur shall enter the title of the organization and provide the PAN card number. Once done, select the “Validate PAN” option. The website herein will automatically get the details through government database and validate the PAN number.
      Once the PAN number is validated, the registration form will appear on the page and all the information required need to be filled precisely. After filling the form, the “Submit and Get final OTP” is to be selected. After entering the OTP, the process gets completed and a message for the successful registration shall be received by the entrepreneur along with the reference number. This reference number is to be kept safe for future use. Once the registration is verified, the registration certificate shall be issued.
   2. For those having registration as UAM and for those already having registration as UAM through Assisted filing:
      For those formerly holding registration as UAM, they shall click the option “For those having registration as UAM” or “ For those previously holding registration as UAM through Assisted form” displayed on the home page of the website. This will open a page where Udyog Aadhaar Number is to be provided and an OTP button should be selected thereupon.
      Further, the choice given is whether to acquire OTP on cell phones as filled in UAM or acquires it on email as provided in UAM. After opting for the OTP button, “Validate and Generate OTP” is to be selected. After providing the OTP, the registration information is to be filled in the MSME Registration Form and Udyam Enrollment will follow upon submitting the same.

Information to be provided in the MSME Registration Form

The following information is required to be filled in the MSME registration form:-

1. 1. Aadhar Card Number;
   2. PAN Card Number;
   3. Name of the entrepreneur as per provided in the PAN Card;
   4. Organization’s type;
   5. Gender;
   6. Social category;
   7. Location;
   8. Address of the Office;
   9. Name of the enterprise;
   10. Bank Account Number along with the IFSC Code;
   11. Date of the commencement of the business;
   12. NIC code;
   13. Number of employees;
   14. Business activity of the enterprise;

1. Amount of Investment and;
2. Turnover made.