The partnership has been defined in Section 4 of the Indian Partnership Act, of 1932. The concerned section delineates that “Partnership is a bond between people who are entitled equitably for the shares of a business, possessed by them or any individual who acts on their behalf. The Partnership Act of 1932 applies to partnership firms. Where the Indian Contract Act is silent, the partnership is likewise governed by its rules. The partnership is a structure that generally benefits companies with a limited presence and a modest management size. Due to the lack of money and other resources, small companies frequently struggle to advance economic activities. By periodically proposing new programs, the Indian government does make the necessary efforts to improve the country’s current status. One such government program, MSME registration, tries to assist small organizations through a variety of programs and smooth funding. Learn how to apply for an MSME Registration for a Partnership firm in this article.
What is meant by an MSME?
The MSME (Ministry of Micro, Small, and Medium Enterprises) is an organization supported by the government that serves as the foundation for the rules, standards, and laws that apply to businesses that operate in the MSME sector.
What is meant by a Partnership Firm?
- An association of partners is not a distinct legal body.
- However, in accordance with the statute, each partner must sign a contractual agreement before a partnership can be formed.
- So, in order to establish a partnership firm, a contract must be signed. Its commercial activity must be legal, and gain should be the primary motivation.
Advantages of MSME Registration for a Partnership Firm
The following are some of the advantages of MSME Registration for Partnership Firms:
- The management and promotion of business expansion in SMEs through workshops, the provision of investment funding, aiding small firms with quality and innovation advancements, and the development of IP rights education are common MSME facilities.
- By implementing a variety of growth-oriented programs, the MSME ministry aims to strengthen tiny and moderate firms.
- Udyog Aadhar Identification is the general name for MSME enrolment.
The Udyog Aadhar Registration Process in Brief
- The Government of India recently started the Udyog Aadhar Registration (UAM) procedure to provide desperately needed support to the MSME sector.
- But at the moment, Udyog Aadhar Registration (UAM) has been switched over to Udyam Registration.
- MSMEs operating throughout the nation must go to the Udyam portal to get their Udyam Registration.
- Before, you had to deal with a tonne of paperwork if you wanted to start a firm and obtain MSME registration.
- You were required to submit much paperwork, including the Entrepreneur Memorandum-I and Entrepreneur Memorandum-II (EM-II).
- The MSME or SSI registration was originally known as the Udyog Aadhar registration.
- Currently, Udyog Aadhar Registration industries must switch to Udyam Registration in order to avail of incentives offered to MSMEs by 31.12.2021.
- If the business owner does not switch to Udyam Registration, their registration will remain valid, but they will need to re-register in order to take advantage of any MSME government incentives that may be offered.
What does UAM (Udyog Aadhar Memorandum) mean?
- Small-scale entities can confirm their existence and provide the necessary information by completing a registration form known as a Udyog Aadhar Memorandum, or UAM.
- Following submission of the aforementioned application, the portal prepares an acceptance note that is sent to the individual’s email- mail address.
- The above slip contains a special UAN (Udyog Aadhar Number).
Information required for the MSME Registration of a Partnership Firm
Following is the below information required about the MSME registration of your Partnership Firm:-
(I)Type of Organization,
(II) PAN Number,
(III) Location of Plant,
(IV) Contact Information,
(V) Date of Commencement,
(VI) Bank Information (Account Number, IFSC Code),
(VII) Principal Function of the Business,
(VIII) Acts of National Industry Classification (NIC) Code
(IX) The workforce size,
(X) The facility’s financial commitment Partners’,
(XI) Aadhar cards,
(XII) The District Industry Centre,
(XIII)The Corporation’s identity
How to Register as an MSME as a Partnership Firm?
Below mentioned are the procedural requirements that must be followed to perform an MSME registration of a Partnership firm:-
- A one-page electronic form must be completed by small business owners, either offline or online. Go to the MSME website’s official portal to register online.
- A person must select separate registration if they want to register for more than one industry.
- The business owner must self-certify the form’s existence, business activities, bank account information, ownership and employee information, and other crucial elements.
- No registration fees are required for the MSME certification process.
- After receiving the necessary information, the site will generate and send the registration number to the applicant on the registered email ID.
Points to remember for the MSME Registration for a Partnership Firm
Below mentioned are some of the crucial points that must be kept in mind while the MSME Registration of your Partnership Firm
- Following a successful registration, the application will receive a permanent certification number.
- The authority will issue the certificate electronically after the certification process is complete.
- This certification must include a dynamic QR Code that enables quick access to the site for the user.
- Periodic renewal is not required for MSME registration.
A government program called MSME registration tries to reward small businesses. In addition to ensuring the availability of collateral-free financing, MSME registration gives companies the chance to participate in government-sponsored tenders. Due to the accessibility of the benefits provided, MSME registration for partnership enterprises ensures greater stability for the business. Overall, small and medium-sized businesses seeking significant financial and commercial potential should consider MSME registration.
A legal company called BizAdvisors.io assist individuals with the MSME registration for a partnership firm. You can thus consult our legal professionals for help registering your partnership firm as an MSME.
Read our article:Documents Required for MSME Registration in India