What you need to know – Forbes Advisor India | Job Binary

With an aim to promote the upcoming Small and Medium Enterprises (MSME), the Government of India launched the Enterprise Registration Portal on July 1, 2020. Enterprise Registration is an online portal dedicated to MSME entrepreneurs who can register their enterprises and thereby avail benefits. Government has provided for their sector.

Here’s an overview of how enterprise registration works and how MSMEs can get various benefits by registering.

Overview of Enterprise Registration

Enterprise registration is a type of e-certification provided by the Government of India to MSMEs. It is completely based on online system, launched by the Union Ministry of MSMEs and replaced the old tedious process of Udyog Aadhaar. MSMEs can register themselves with the government through enterprise registration and thus avail all the required benefits.

Here, under this registration, MSMEs are provided with unique identification number along with identification certificate. This certificate certifies these enterprises as “MSMEs” and also provides ample benefits of coming under the category of MSME businesses in India.

Eligibility for Business Registration

  1. The enterprise should be micro, small or medium units.
  2. The benefits depend on the total turnover of MSMEs. For example, micro enterprises with a turnover of up to INR 5 crore are eligible for registration and its benefits. And, small enterprises with an annual turnover of INR 5 crore to INR 75 crore and medium enterprises with an annual turnover of up to INR 250 crore are eligible for the benefits.
  3. As with turnover, investment by MSMEs is also crucial. For example, to qualify for benefits and registration, micro enterprises should not have an investment of more than INR 1 crore, while the investment of small enterprises and medium enterprises should not exceed INR 10 crore and INR 50 crore respectively.

Benefits of Enterprise Registration for MSMEs

  1. Get access to collateral free loans from banks and financial institutions.
  2. Easy access to multiple registrations and licenses.
  3. Discount rate on various utility bills like electricity bills.
  4. Get more time to pay delayed payments.
  5. Subsidized and low interest rates are offered on bank loans.
  6. Patents and barcodes are subsidized.
  7. Subsidy on credit rating.
  8. Special exemptions under all types of direct taxes.
  9. ISO certification fees will be refunded.

To know more details about the benefits of business registration visit their website for detailed explanations in regional languages.

Business Registration Factsheet (as on October, 2022)

How to Apply Online for Business Registration?

  1. Visit the Enterprise Registration official website.
  2. Click on “For New Entrepreneurs Not yet Registered as MSME”.
  3. Enter your Aadhaar number and then the OTP received on your registered mobile number.
  4. Click on “Validate” tab to validate Aadhaar number successfully.
  5. Then, validate the PAN card. Enter the Enterprise Type and PAN Number to validate your PAN card.
  6. Fill the MSME registration form by providing all the necessary details such as date of establishment, email address, contact details, bank details and amount invested.
  7. File the form and click on “Agree Terms and Policies” and then submit the form. Next, you will get an OTP, enter that OTP and submit the form.
  8. Receive e-registration certificate on your mail id.
  9. Also, if you want to print a copy or check the validity of the business registration, you can directly visit the Business Registration Verification link on their website.

Important Features of Business Registration

  1. After registration, you will be provided with a permanent registration number.
  2. Registration certificate will be issued online.
  3. No registration renewal required.
  4. The registration process has no fees with zero paperwork.
  5. The industry portal is integrated with Income Tax and GST identification systems.
  6. No enterprise can submit more than one registration.

Documents required for business registration

Below is the list of essential documents required for registration of MSMEs:

  1. PAN details of the enterprise
  2. Aadhaar card
  3. Registered Mobile Number
  4. Copy of GST certificate and passbook
  5. List of male and female employees respectively
  6. Audited particulars or financial statement of the business
  7. Partnership Deed, if any
  8. Articles of Association
  9. Petition of the association

The bottom line

Enterprise Registration is a self-declaration, paperless and zero-cost platform for MSME entrepreneurs to register their enterprises. All businesses must obtain this registration to avail various MSME benefits. It helps the government to collect data on the number of MSMEs in India. Officials can get data based on product category, such as apparel, electronics, jewellery, automobile, and investment and turnover as well as industry size.

Frequently Asked Questions (FAQs)

What is the main purpose of business registration in India?

The main purpose of business registration is to give legal and operational identity to your small or medium business enterprise through a certificate. All MSMEs must have this certification to avail the benefits of government-led MSMEs initiatives.

How much do I have to pay to register my MSME under Industry Portal?

Is it necessary to have a bank account for business registration?

Can a retailer register under business registration?

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