You are in the right place when you ask yourself if your company is suitable for udyam registration. Before we get into the specifications of the MSME/Udyam registration criteria, let’s take a brief look at what MSMEs are.
MSME stands for Micro, Small and Medium Business. The MSMEs are such an important part of India’s economic growth that the government has set up a separate ministry to support and promote them. MSME benefits from the MSMED Act of 2006, which provides cheaper loans, tax incentives, and various programs and subsidies. MSME registration can provide you with many benefits if you are already a beginning entrepreneur. Registration as an MSME is not required. However, you must use government incentives for small businesses and entrepreneurs if you are serious.
Who is eligible to apply?
Any business can register with MSME or Udyog Aadhaar. Company real estate, LLPS, public limited society, Hindu are not changed by families (HUF), communicate with people and any other registration of class in MSME. Aadhaar number is needed for MSME registration. Any businesses that want to register your strong government you want to have a valid Aadhaar number.
MSME Classification:
MSMS Development (Change) Bill, 2018, Setting Up a New Class System. A company with no 5 crores is considered a micro input. Other plates are 5-75 crores for small businesses and 75-250 crores for medium-sized companies.
You need MSME registration documents containing the following:
- MSME registration is as good as the person. There are no registration costs and the process is easy and painless. MSME-registration documents you need as follows:
- Letter assets cosmetic action letter to the allocation, municipal licensing, utility equipment and land owner
- Copies of sales and purchases: For each raw material used in the formation process, the purchase movement must be submitted. Each product or service produced must also be accompanied by a sales refund.
- Company formation documents: If the organization is a partner company, a partnership document and a registration certificate are required. If the entity is a corporation, a copy of the memorandum and articles of association must be submitted, as well as a certificate of incorporation. A copy of the board resolution authorizing MSME registration is also required.
- Other documents required: When submitting the application, the applicant may be required to provide a copy of the industrial license received from the GOI. It is also necessary to submit all invoices related to the purchase and installation of machinery and equipment.
The registration procedure is as follows:
MSME registration can be done online. While it’s not necessary before you start a business, it’s recommended because of the benefits it offers. You will need to fill out an application form with the following information:
- Aadhar applicant number
- Name, sex, PAN number, e-mail address and mobile number of the applicant
- PAN number, location and address of the organization
- The number of people you want to hire and when you want to start a business
- IFSC code and bank account number
- The main business of the company is
- NIC code (two digits)
- Purchase of machinery and equipment
After completing the registration process, you will receive an MSME certificate. The ministry will not publish it in a physical version. The virtual certificate will be sent to you.
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What are the benefits of registration of your small business?
There are different benefits to registering a small business. According to the government is the most important six benefits of registration in MSME:
- At the beginning, if you do, you can get bank loans with many cheaper interest rates. In fact, it may fall within 1% or 1.5 percent. This, as you know, is a much shorter interest rate than is normally the case with business loans.
- You also have many tax benefits.
- If you pay only the smallest alternative taxes, you can get credit. It can be increased from the normal ban from ten years to a maximum of fifteen years.
- As an MSME, you have the sole authority to apply for various government contracts. You also have many credit options. You will also receive many discounts and rebates on starting a business or completing business tasks such as patent registration.
- You will have a competitive advantage in terms of state-issued certificates and udyam licenses.
