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MSME Registration Online
MSME Registration:
A Complete Guide for Entrepreneurs
Micro, Small, and Medium Enterprises (MSMEs) are the backbone of any economy, contributing significantly to employment, GDP, and exports. Recognizing their importance, governments worldwide, including India, offer various benefits and incentives to MSMEs. However, accessing these benefits requires formal MSME registration. This comprehensive guide will help you understand MSME registration, its features, steps, compliance requirements, and much more.
What are the benefits of
MSME Registration Online?
Collateral Free Loans
Easy finance availability from Banks, without collateral requirement
Buyer Assured Payments
Assured payment within 45 days and protection against delay in payment from Buyers and right of interest on delayed payment
Preference in procuring Government tenders
MSME registered entities will be preferred in government tenders as compared to others.
Concession in electricity bills
Usage of power is essential for any sector, and it will be intense as per the industry's activity. The concession will enable the small entities to benefit from the recognition.
Dispute Resolution
Time-bound resolution of disputes with Buyers through conciliation and arbitration
Avail 50% rebate on TM application
Companies, partnership firms, and LLPs pay higher trademark registration fees than individuals and proprietorships. By submitting an MSME registration certificate, these entities are entitled to a 50% rebate on government fees. In addition, patent registrations also come with a rebate.
Who can apply for
MSME registration Online?
Manufacturers and service providers who fall under the given classification can register.
Micro
Investment < Rs. 1 crore
Turnover < Rs. 5 crore
Small
Investment < Rs. 10 crore
Turnover < Rs. 50 crore
Medium
Investment < Rs. 50 crore
Turnover < Rs. 250 crore
Steps for
MSME Registration
Step 1: Check Eligibility
Verify if your enterprise qualifies under the MSME definition.
Step 2: Gather Documents
Prepare the required documents (detailed later in this guide).
Step 4: Fill Out the Application Form
- Provide details like Aadhaar number, PAN, business type, and bank details.
- Mention NIC (National Industrial Classification) code and the number of employees.
Step 5: Upload Supporting Documents
Upload all necessary documents in the prescribed format.
Step 6: Verification and Submission
After submission, your application will be reviewed, and a unique Udyam Registration Number (URN) will be generated upon approval.
When You Should and Should Not Get
MSME Registration
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When You Should Register:
- To avail government subsidies or participate in reserved tenders.
- If you face difficulty accessing credit due to high interest rates.
- When seeking protection under the MSME Act for delayed payments.
- To promote your enterprise’s credibility among clients and investors.
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When You Should Not Register:
- If your business exceeds the turnover or investment limits set for MSMEs.
- If your enterprise has already registered under a different scheme and received similar benefits.
- For enterprises focusing exclusively on sectors not covered under the MSME Act.
MSME Loans and Scheme Benefits:
Unlocking Growth Opportunities
Micro, Small, and Medium Enterprises (MSMEs) can access a variety of loans and schemes designed to support their growth and sustainability. These benefits aim to address funding challenges, promote technological upgrades, and enhance market competitiveness. Below is a detailed overview of the key MSME loans and government schemes.
MSME Loan Schemes
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Collateral-Free Loans
- Description: MSMEs can avail loans without pledging assets as collateral under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
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Features:
- Coverage up to ₹2 crores.
- Includes term loans and working capital loans.
- Available for new and existing businesses.
- Benefits: Provides financial access to startups and small businesses unable to secure loans traditionally.
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Pradhan Mantri MUDRA Yojana (PMMY)
- Description: Offers loans under three categories – Shishu (up to ₹50,000), Kishor (₹50,001 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh).
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Features:
- No collateral required.
- Flexible repayment terms.
- Covers small businesses, artisans, and street vendors.
- Benefits: Encourages entrepreneurship by simplifying access to finance.
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Stand-Up India Scheme
- Description: Focuses on loans for women and SC/ST entrepreneurs.
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Features:
- Loan amount: ₹10 lakh to ₹1 crore.
- For greenfield projects in manufacturing, trading, or services.
- Covers 75% of the project cost.
- Benefits: Promotes social equity and inclusiveness.
-
SIDBI Assistance
- Description: The Small Industries Development Bank of India (SIDBI) provides a range of loan products for MSMEs.
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Features:
- Growth Capital and Equity Assistance for MSMEs (up to ₹5 crores).
- Technology and innovation funding.
- Benefits: Helps MSMEs adopt modern technology and expand operations.
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Emergency Credit Line Guarantee Scheme (ECLGS)
- Description: Launched during the pandemic to support businesses affected by economic disruption.
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Features:
- Additional working capital of up to 20% of existing credit limits.
- 100% government guarantee on loans.
- Benefits: A lifeline for MSMEs facing cash flow issues.
Government Schemes for MSMEs
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Technology Upgradation Fund Scheme (TUFS)
- Description: Encourages MSMEs to upgrade their technology.
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Features:
- Subsidy on machinery purchase.
- Covers industries like textiles and manufacturing.
- Benefits: Boosts productivity and competitiveness.
-
Market Development Assistance (MDA) Scheme
- Description: Supports MSMEs in promoting products in domestic and international markets.
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Features:
- Financial assistance for participating in trade fairs and exhibitions.
- Reimbursement of airfares and freight charges.
- Benefits: Enhances market visibility and export potential.
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ZED Certification Scheme
- Description: Promotes Zero Defect and Zero Effect manufacturing.
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Features:
- Subsidies for obtaining ZED certification.
- Training and consulting support for quality improvements.
- Benefits: Encourages sustainable and environmentally friendly manufacturing practices.
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Credit Linked Capital Subsidy Scheme (CLCSS)
- Description: Helps MSMEs upgrade technology by providing subsidies.
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Features:
- 15% subsidy on capital investments up to ₹1 crore.
- Covers sectors like food processing, auto components, and pharma.
- Benefits: Makes advanced technology affordable for small businesses.
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Public Procurement Policy
- Description: Mandates government departments to source 25% of their requirements from MSMEs.
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Features:
- Includes a 4% reservation for SC/ST entrepreneurs.
- Exemption from tender fees for MSMEs.
- Benefits: Secures a steady revenue stream for small businesses.
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Skill Development Programs
- Description: Focuses on training MSME employees.
-
Features:
- Free or subsidized skill development courses.
- Includes technical, financial, and managerial training.
- Benefits: Improves workforce efficiency and enterprise competitiveness.
List of Documents Required
for MSME Registration Online
When you're ready to get on the MSME Registration Online journey, having the right documents is crucial. This ensures a smoother process and helps avoid unnecessary delays.
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Aadhaar Card of the Applicant (Director/Partner/Proprietor)
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Pan Card of the Applicant
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Details of the entity and its activity
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Details of Address and Commencement of Business
NOTE:
*Documents for other registrations as per the plan opted can be viewed through the filingbee website & also communicated to you
*We will collect additional documents based on the information you provided to the filingbee.
Thank You