An Overview: MSME Registration for Private Limited Company

MSME Registration for Private Limited Company

The Indian economy is moving leaps and bounds and is growing at one of the highest paces across the world. One of the strongest pillars of the Indian economy is the MSME industry and the government has taken many initiatives and measures to promote the same and ensure that they have the maximum chance to bounce back in the post covid period. The government has provided a detailed process of classification and registration for MSMEs. Read on to know more about MSME Registration for Private Limited Company.

Table of Contents hide

1 Who can opt for MSME registration?

2 What is the revised classification of MSME?

3 What are the documents needed for MSME registration?

4 What is the process of MSME registration for private companies?

5 How can the applicants check the status of MSME registration?

6 Conclusion

7 FAQs

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Who can opt for MSME registration?

MSME stands for Micro, Small, and Medium Enterprises, and eligible business entities can register as MSMEs under the regulations of the Ministry of Micro, Small, and Medium Enterprises. MSME registration enables MSMEs to avail a range of government benefits and support aimed at promoting their establishment and facilitating their growth.

MSME registration in India is open to a wide range of entities, including micro, small, and medium-sized firms, as well as other types of businesses such as limited liability partnerships (LLP), private limited companies, one-person companies (OPC), sole proprietorships, partnerships, and public companies, Self Help Groups (SHGs), Co-operative societies, Trusts.

Both manufacturing and service sector businesses are eligible for MSME registration. An important requirement for obtaining an MSME certificate is the use of a valid Aadhaar number, as it is linked to the registration process.

As per the previous classification, the entities were classified on the dual basis of manufacturing or service units as well as based on their investment made. However, the current revised MSME classification takes into account both the investment in plant and machinery or equipment, as well as the annual turnover, to determine if an entity qualifies as an MSME.

What is the revised classification of MSME?

This revised criterion for MSME registration is tabled below.

Category of entity	Investment and Annual Turnover
Micro Enterprises	Investment in Plant and Machinery or Equipment – Not more than Rs.1 crore Annual Turnover – Not more than Rs. 5 crore
Small Enterprises	Investment in Plant and Machinery or Equipment – Not more than Rs.10 crore Annual Turnover – not more than Rs. 50 crore
Medium Enterprises	Investment in Plant and Machinery or Equipment – Not more than Rs.50 crore Annual Turnover – not more than Rs. 250 crore

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What are the documents needed for MSME registration?

The documents needed for MSME registration are mentioned below.

The Aadhaar Card of the business owner or authorized signatory.
The PAN Card of the business owner or authorized signatory.
Proof of address for the registered office or business location.
Details of the business bank account along with the IFSC code.
Information about the primary business activity conducted by the entity.
The National Industrial Classification (NIC) 2-digit code that corresponds to the business activity.
Details of the investment in plant, machinery, and equipment employed by the business.
Turnover details as per the new MSME definition, which considers both the investment and annual turnover.
In the case of a partnership firm, a copy of the partnership deed.
Copies of sales and purchase bills to verify business transactions.
Copies of licenses obtained for business operations and bills/receipts for the purchase of machinery or equipment.

What is the process of MSME registration for private companies?

The MSME registration process is conducted entirely online through the government portal at https://udyamregistration.gov.in. There is no fee charged for MSME registration. The online registration can be done under two categories on the portal:

For New Entrepreneurs who are not registered yet as MSMEs or those with EM-II.
For those who already have registration as UAM (Udyog Aadhaar Memorandum) or those with registration as UAM through Assisted filing.

By selecting the appropriate category, entrepreneurs can proceed with the online MSME registration process on the portal. The detailed procedure for registration in each case is given here.

For New Entrepreneurs who are not registered yet as MSMEs or those with EM-II.

Click on the “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II” button on the Udyam Registration Portal’s home page.
Enter the Aadhaar number and name of the entrepreneur, and click on the “Validate and Generate OTP” button to receive and enter the OTP.
On the PAN Verification page, enter the “Type of Organisation” and PAN number, and click on the “Validate PAN” button for PAN verification.
Once PAN is verified, the Udyam Registration form will appear, and entrepreneurs need to fill in personal details and enterprise information.
Provide investment and turnover details, select the declaration, and click on the “Submit and Get Final OTP” button.
Enter the final OTP received, submit the form, and the Udyam Registration Certificate will be sent via email.
Entrepreneurs can also check the MSME registration status on the Udyam Registration Portal.

For those who already have registration as UAM

To register as an MSME for those already having UAM (Udyog Aadhaar Memorandum) registration, the following steps need to be followed on the government portal:

On the home page of the portal, click on the button “For those having registration as UAM” or “For those already having registration as UAM through Assisted filing”.
Enter the Udyog Aadhaar Number and select the desired OTP option, either on mobile as filled in UAM or on email as filled in UAM.
Click on “Validate and Generate OTP” after selecting the OTP option.
Enter the received OTP and proceed to fill in the registration details on the MSME registration form.
Complete the form submission, and the Udyam registration process will be concluded.

How can the applicants check the status of MSME registration?

After applying for the MSME registration, applicants can check the status of their application. The process for the same is given here.

Visit the MSME Registration portal designed for checking application status.
Enter the 12-digit UAM (Udyog Aadhaar Memorandum) number and the verification code as shown in the Captcha image.
Click on the ‘Verify’ button after entering the UAM number.
The portal will display the status of the business owner’s MSME registration, allowing them to track the progress and current status of their application.

Conclusion

The MSME sector remains a critical component of India’s economy, particularly following the introduction of the Atmanirbhar Bharat Abhiyan initiative. The growth of MSMEs has a direct contribution to the overall economic growth of the country and therefore the government has taken measures to simplify the registration process. MSME Registration is quite beneficial for MSME units as it makes them eligible for the various government schemes and benefits that are available to MSME units.

FAQs

1. What are the various MSME schemes launched by Government in India?

The various MSME schemes launched by Government in India include Udyog Aadhar Memorandum, Quality Management Standards and Quality Technology Tools, Credit Linked Capital Subsidy Scheme, Zero Defect Zero Effect, Grievance Monitoring System, Incubation, Women Entrepreneurship.

2. What is the cost of registration on the UDYAM portal?

The MSME registration on UDYAM Portal is free of cost.

3. What is the time taken for receiving an MSME registration certificate?

It takes approximately 3-5 days to receive the MSME Registration Certificate post successful application of the same.

4. What are some of the benefits of MSME registration?

Some of the popular benefits of MSME registration include cheaper bank loans with interest rates as low as 1-1.5% for MSMEs, carry forward of Minimum Alternate Tax (MAT) for up to 15 years, providing extended tax benefits, rebates, and concessions, reducing costs for activities like patent registration and industry setup, easy participation in government tenders through integration with platforms like Government e-Marketplace and State Government portals, access to subsidies for barcode registration, reimbursement of ISO certification fees, concession on electricity bills, and special consideration in international trade fairs.