Over the recent years, the MSME sector has flourished significantly and has emerged as a dynamic sector of the country. Complementing the large-scale industries, the MSME sector provides the basics to a large-scale enterprise and helps create a number of opportunities nationwide. To promote more such enterprises, the Ministry of Micro, Small and Medium Enterprises provide certain schemes and concessions. MSME Registration Certificate denotes an enterprise as qualified to celebrate the assistance provided by the government.

In order to confirm the new definition of MSMEs and related facilities, the system provides for a permanent MSME Registration called Udyam Registration. Where the enterprise is called Udyam and the process of obtaining an MSME Registration Certificate is called Udyam Registration.

What is a MSME Registration Certificate?

For indicating an enterprise as a registered enterprise under the MSME Registration, an MSME Registration Certificate is issued to the registered enterprise. This MSME Registration Certificate is different and individual for different enterprises depending on the industry and the sector type.

Process of Obtaining MSME Registration Certificate

For a new enterprise – 

• The registration process to obtain an MSME Registration Certificate is a completely online and paperless process based on self-declaration.
• In case there is an intentional misrepresentation in the documents or facts in the registration of updation process, the applicant is liable to undergo a penalty as per Section 27 of the Act.
• For an MSME registration, the only document to be submitted is the Aadhaar number of the applicant. The other details such as PAN, GST and other details are taken up directly from the government database. Hence, having a PAN and GSTIN as notified by the Ministry of MSME, is necessary for an Udyam or an MSME registration.
• An enterprise should not file for more than one MSME Registration Certificate. However, a number of activities relating to manufacturing or service or both may be added in one single Registration.

For existing enterprises – 

• The existing enterprises, already registered under EM–Part-II or UAM have to register again on the Udyam or MSME registration portal in order to obtain an MSME Registration Certificate.
• An enterprise registered with any other organization under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam or MSME Registration.
• All the registrations are to be done in accordance with the new guidelines by the Ministry of MSME

Benefits of Obtaining MSME Registration Certificate

The Ministry of Micro, Small and Medium Enterprises has highlighted certain benefits of obtaining an MSME registration-

• Identification number: The permanent registration will act as a basic identification number for the enterprise.
• Validity and renewal: The MSME Registration Certificate is valid infinitely and would not require any renewal. The only condition the enterprise has to fulfil is to maintain its ethnicity and stay financially stable.
• The number of activities: Under one single MSME registration, a number of activities can be included. It may be manufacturing or service activities or both added in a single registration.
• Simultaneous registrations: Along with Udyam or MSME Registration, an enterprise can register themselves at a number of other platforms such as SAMADHAAN Portal or TReDS Platform, etc.
• Scheme benefits: An MSME Registration Certificate also allows enterprises to avail the benefits under the schemes provided by the Ministry of MSMEs. Schemes such as Public Procurement Policy, Credit Guarantee Scheme, etc.

Documents Required for MSME Registration Certificate

For an MSME Registration, the only document required to be submitted is the Aadhaar number. All other relevant documents are taken up from the governmental database. From 01.04.2021, having a PAN number and GST number is mandatory.

Procedure for Acquiring MSME Registration Certificate

Step 1: Visit the official website of the Ministry of Micro, Small and Medium Enterprises^[1].

Step 2: Fill in the Aadhaar number and other form details required online. 

In the case of a proprietorship firm, the Aadhaar number of the proprietor is to be submitted. In the case of a partnership firm, the Aadhaar number of the managing partner and in the case of a Hindu Undivided Family, the Aadhaar number of a Karta is to be submitted.

Step 3: After submitting the application form along with documents, the applicant shall receive a registration number.

Step 4: A permanent registration number is given after registration.

After completion of the process of registration, a certificate is issued online. This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed. The registration process does not require any registration fees.

Conclusion 

The Ministry of Micro, Small and Medium Enterprises, as of 2020 has issued a notification for an upward revision of the details related to the MSMEs of the country. Supporting the principle of Atmnirbhar Bharat, the definitions of all Micro, Small and Medium enterprises have been changed. The limits of investments and turnovers defining these enterprises have been significantly increased. To increase the security and registration into the MSME sector, the Ministry has made the process for MSME Registration quick and hassle-free. For more details on the MSME Registration process and MSME Registration Certificate, contact Bizadvisors.

Read our article:How to Get MSME Registration in India