What is the MSME Registration Procedure in Uttar Pradesh?
Just like every drop counts to fill the jar. Similarly, all Micro, Small, and Medium Enterprises play a significant part in the growth of the economy. As per statistical data, Uttar Pradesh has the maximum number of MSMEs with a share of 14.20% of the total MSMEs in India. Micro, Small, and Medium sector provide a broad spectrum of products & services, scaling from traditional to hi-tech items. The Government of India acclaims the role of MSMEs and takes necessary measures to support them through various schemes. However, only registered enterprises can avail the benefits of schemes. Hence, it is essential to undergo the MSME registration procedure, and this document will provide a reference for the same.
Eligibility for MSME Registration
To register under the MSME Act, 2006, an applicant needs fulfil these conditions:
- Manufacturing Enterprises: A medium enterprise that belongs to the manufacturing sector should have an investment of less than INR 10 Crores in the plant & machinery. Whereas for micro-enterprises, the limit is less than INR 25 Lakhs, and for small enterprises, the investment should be less than INR 5 Crores.
- Service Enterprises: The micro-enterprises of the service domain must have an investment of less than INR 10 Lakhs. For small-enterprises, the limit extends to less than INR 2 Crores, and the investment limit for medium enterprises is less than INR 5 Crores.
Advantages of registering under the MSME Act
Before undertaking the MSME registration procedure, take a look at its benefits:
- Collateral Free Credit- Considering the inadequacy of funds in micro and small enterprises, the Government provides them collateral-free credit. Further, the Government has established the scheme of Credit Guarantee Trust Fund Scheme and Small Industries Development Bank of India to ensure its implementation for all MSMEs.
- Subsidy on Patent Registration- Another perk of MSME registration is that it grants a 50% subsidy to all enterprises that possess an MSME certificate. In order to avail subsidy, the enterprises just have to file an application to the respective ministry.
- Concession on Electricity Bills- Lower electricity bills allowance is given to all the MSME certified enterprises. Such firms can provide the MSME registration certificate along with an application to the electricity department.
- Reimburse ISO Certification Charges- A registered MSME holds power to claim the payment of the expenses that were earlier spent during the process of ISO certification.
- Additional benefits- Apart from the stated advantages, MSMEs get multiple other benefits such as hassle-free bank account opening, lower interest rates loans, no stamp duty, registration charges, etc.
MSME Registration applicants must submit these set of valid documents along with the application:
- Aadhaar card copy;
- Name of the Company or business entity;
- Address proof of the registered office address such as Rent Agreement (in case the office is on rent) and NOC from the landowner;
- Certificate of Incorporation of the Company;
- Complete information like name, nationality, address, of all the employees;
- A copy of the PAN card;
- Personal details of the applicant (mobile no. and email address);
- Central business operations of your current company;
- Memorandum of Association (MOA) and Article of Association (AOA);
- 2 Digit (NSIC)National Industry Classification Code;
- Detailed information about the investment done in Plant & Equipment or Machinery;
- A cancelled cheque of your current business account.
Government Schemes provided to MSMEs
Additional to the above-mentioned benefits, the registered MSMEs get access to numerous opportunities given by the Indian Government:
- Udyog Aadhar Memorandum Scheme
- Women Entrepreneurship
- Zero Defect Zero Effect Scheme
- Credit Linked Capital Subsidy Scheme
MSME Registration Procedure in Uttar Pradesh
The process of registering an MSME is very simple and can be completed with few steps as follows:
- Visit the official website of Udyog Aadhaar and register as an entrepreneur.
- Now, you need to fill all the essential details of the MSME industry in which you want to start the business.
- Submit all the prescribed documents mentioned on the website. Ensure that your documents are valid and true.
- The next step is to submit a self-attested copy of the Certificates as required.
- After submission of the application and documents, you have to wait for about 2-3 working days to receive a response from the Regulatory Authority.
- Once the Regulatory Authority approves the provided information, you will receive an MSME Registration Number that you shall be used to download the MSME Registration Certificate from the Udyog Aadhaar website.
MSMEs have gained an eminent stature in the market and contribute a large part in economic development. Therefore, Government encourages Micro, Small and Medium Enterprises as an advancement in this sector which shall have a simultaneous impact on the GDP of our country. If you also want to step into the industry of MSME, seeks the guidance of Swarit Advisors.