Registering your MSME business is not a difficult process with the advent of digitization in the modern Indian economy. Through the reforms in the Indian economy, MSMEs have to no longer go through lengthy processes that need a lot of documentation. In this article, we will explain the process of the new MSME registration.
Why Is MSME Registration Critical?
Though the registration of MSMEs is not compulsory, you should register your business to get government benefits. Recently, the government of India launched various schemes that will help your business to grow. So, to avail all the benefits, you need to register your organization as an MSME. It will help you to understand and use various schemes to grow the business.
Which Businesses Come Under MSME
The classification of the businesses into various categories can happen either based on the investment or the nature of the organization.
- If the business has less than one crore invested in the business, in the form of plant, machinery, or equipment, it will fall into a micro-enterprise.
- If the investment in the business is between 1 to 5 crore in plant, machinery, or equipment, it will be a small enterprise.
- To qualify as a macro business, an organization must have invested between 5 to 10 crores in plant, machinery, or equipment.
Along with that, after the passage of the MSME Act of 2006, a business is further defined by the basis of turnover:
- Businesses having less than five crores of annual turnover will qualify as micro-enterprises.
- However, if an organization has an annual turnover above fifty crores, it will fall under the small enterprise category.
- Lastly, any business with a turnover equal to or above 250 crores will fall under the medium enterprise category.
What is the process of registering an MSME Business?
The process of registering an MSME business is pretty simple due to the central government schemes. With the launch of the Udhyam registration portal, you can register your MSME business by following these steps:
- Visit the Udhyam registration portal and click on the first link to register your business.
- Enter the Aadhar number and name as per the documents, and an OTP will come on your phone; enter the same on the registration portal.
- After the verification is complete, you will have to fill in your PAN details. However, having a PAN card is not necessary for registering your MSME business.
- After this, you have to fill in a form, and after submitting the form, you will get an OTP, which you have to enter to submit your form.
- After submitting the form, you will get a ‘thank you’ message. After 2 to 3 days, you will get a status update. You will get the certificate of MSME on your registered email.
So, a simple process of registering your business as an MSME will help you to get access to a plethora of government schemes. It will help you to take your business to the next level of growth. With that said, there are a multitude of applications in the market that will help you optimize your cash flow, like CredFlow, through which you can take full advantage of these newfound capital sources.