Get MSME or Udyam registration certificate for Micro business or Micro income like digital Marketers, Freelancers and individuals etc…
What is MSME or Udyam?
MSME stands for Micro, Small and Medium Enterprises. Udyam stands for doing business. In a developing country like India, MSME industries are the backbone of the economy.
This sector contributes to 45% of India’s total Industrial Employment, 50% of India’s total Exports of the country (As per msme.gov.in). When MSME industries grow, the economy of the country grows as a whole. These industries are also known as small-scale industries or SSI’s.
It was established to promote, facilitate and develop the competitiveness of the micro, small and medium enterprises. The MSME became operational on October 02, 2006.
What is freelancer, Digital marketer and Micro business?
Digital marketers are basically helping companies promote their products and services online. Their job is to reach out to client’s target audience, drive them to client’s website, and convert them as paying customers.
Freelancer is a self-employed person who offers services, often working on several jobs for multiple clients at one time. they usually earn money on a per-job basis, charging hourly or daily rates for their work. Freelance work is usually short-term.
Micro business also known as a microenterprise, refers to a very small business (entrepreneurialdiary) that is started with a very small amount of capital and self-employed by owner or with few people like Street Vendors, Street food, tourism (learnleisure), Flower shops, Grocery shops, Rural entrepreneurs (Desi-Udyami) etc. A microenterprise usually operates with fewer than 10 people and is started with a small amount of capital advanced from a bank or other organization.
What are Micro business, Small and Medium Enterprise?
As per General terms
Micro business means capital employed and turnover in tiny level like Street vendors. Small business means capital employed and turnover in mid level. Medium enterprises business means capital employed and turnover in big level like popular BRANDS (readwithme) .
As per MSME act
Now, under the Aatmanirbhar Bharat Abhiyan (ABA), the government revised the MSME classification*. where the investment and annual turnover, both are to be considered for deciding an MSME.
The following is the revised MSME classification*
| Criteria | Micro | Small | Medium |
| Investment & | < Rs.1 crore & | < Rs.10 crore & | < Rs.50 crore & < |
| Annual Turnover | < Rs.5 crore | < Rs.50 crore | Rs.250 crore |
Who will register under MSME or Udyam?
Any person who is citizen of India doing service or business-like Individuals, Micro business, Street Vendor, Freelancers, Digital marketers, Entrepreneurs,Traders*(Newly added by Govt of India July 2021) etc… can themselves register and get certificate under MSME Act.
What are the Benefits of MSME or Udyam Registration?
This registration is not yet made mandatory by the Government of India but it is beneficial to entrepreneurs. Because it provides a lot of benefits in terms of legal proof for business, taxation, Opening of bank ac, credit facilities, loans etc.
MSME or Udyam Registration Process for micro business, Digital marketers, Freelancers etc..
Udyam MSME registration is to be done in the government udyam portal of https://udyamregistration.gov.in under the following two categories –
1. For New Entrepreneurs or business who are not Registered yet as MSME and
2. For those having registration as EM-II or UAM and For those having registration as EM-II or UAM through Assisted filing.
For those need HELP or Assistance in MSME registration
For those need assistance or HELP to register in MSME kindly use Syrphyy சிற்பி . They will help you for register and follow up the process till the happy end of getting MSME certificate and save your time.
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My 2 clients were got this certificate through Face2Face services in Syrphyy சிற்பி. Many other service providers also there in market so kindly use their services also.
For New micro business, Digital marketers, Freelancers who are not Registered yet as MSME
New Digital marketers, Freelancers need to click the button “For New Entrepreneurs who are not Registered yet as MSME” shown on the home page for registering MSME. New registration of MSME is done by entering the Aadhaar card number in the following two ways-
• Registration With PAN Card or
• Registration Without PAN Card
Registration With PAN Card:
When clicked on the “For New Entrepreneurs who are not Registered yet as MSME” button on the homepage of the udyam portal, it opens the page for registration and asks to enter the Aadhaar number and the name of the entrepreneur.
After entering these details, “Validate and Generate OTP Button” is to be clicked. Once, this button is clicked and OTP is to be received and entered, then PAN Verification page opens.
If you have PAN Card, the portal gets the PAN details from the Income tax databases and automatically fills details on this page. The ITR details are to be filled by you.
Once PAN details are entered, a message appears as “Udyam Registration has already been done through this PAN” and you need to click the “Validate PAN” button.
After verification of PAN, the Udyam Registration box will be appeared and you need to fill the personal details and details of the plant or industry.
Once the details are filled, click the “Submit and Get Final OTP” button and enter the OTP.
That’s all your MSME is registered and a message of successful registration with reference number will be appeared.
After verification of registration, which may take a few days, the Udyam Registration Certificate is to be issued.
Registration Without PAN Card:
The button “For New Entrepreneurs who are not Registered yet as MSME” is to be clicked on the homepage of the Udyam portal.
It opens the page for registration and asks to enter the Aadhaar number and the name of the entrepreneur.
After entering these details, “Validate and Generate OTP Button” is to be clicked.
Once, this button is clicked and OTP is to be received and entered, then PAN Verification page opens.
If the entrepreneur does not have a PAN Card, the “No” option under the heading “Do you have PAN?” is to be clicked and then the “Next” button.
After the “Next” button is clicked, the Udyam Registration page opens where the entrepreneur should enter his personal details and plant or industry details.
Once the details are filled, “Final Submit” is to be clicked and a thank you message will appear with the registration number.
Note: After getting the PAN and GSTIN, it needs to be updated on the portal within 01/04/2021 to avoid suspension of Udyam Registration.
Registration for micro business, Entrepreneurs Already Having EM-II Or UAM:
For those already having registration as EM-II or UAM, they need to click the button “For those having registration as EM-II or UAM” or “For those having registration as EM-II or UAM through Assisted filing” shown on the home page of the Udyam portal.
This will open a page where Udyog Aadhaar Number is to be entered and an OTP option should be selected.
The options provided are to obtain OTP on mobile as filled in UAM or obtain OTP on email as filled UAM.
After choosing the OTP Options, “Validate and Generate OTP” is to be clicked.
After entering OTP, registration details are to be filled and udyam registration will be completed.
Benefits of MSME Registration
1. The bank loans become cheaper as the interest rate is 1 to 1.5% lower than interest rate on regular loans due to this MSME registration.
2. It also allowed credit of minimum alternate tax (MAT) to be carried forward up to 15 years instead of 10 years
3. Getting rebate in registration fees of patent, or the cost of setting up the industry reduces as many rebates and concessions are available.
4. It helps to acquire government tenders easily because Udyam Registration Portal is integrated with Government e-Marketplace and various other State Government portals which give easy access to their marketplace and e-tenders.
5. There is a One Time Settlement Fee for non-paid amounts of MSME.
Information Required for MSME Registration for micro business
Aadhaar Card is the only document required for MSME registration. PAN & GSTN numbers are optional.
Investment and turnover of enterprises will be taken automatically by the Udyam Registration Portal from Income tax and GST databases with PAN and GSTIN numbers.
The Udyam Registration Portal is fully integrated with Income Tax and GSTIN systems. PAN and GSTIN number are mandatory from 01.04.2021 for registration.
Without PAN and GSTIN numbers MSME Registration can be done now. But both numbers have to be updated for avoiding suspension of registration.
Those who have EM-II or UAM registration or any other registration issued by any authority under the Ministry of MSME, will have to re-register themselves in this Portal (as stated in the Registration Process heading above)
MSME schemes launched for micro business by the Government are
Technology and Quality Upgradation Scheme:
It will help to the micro, small and medium enterprises to use energy efficient technologies (EETs) in manufacturing units so as to reduce the cost of production and adopt a clean development mechanism.
Grievance Monitoring System:
Business owners complaints are addressed with solution. They can check the status of their complaints, open them if they are not satisfied with the outcome.
Incubation:
This scheme helps innovators for implementation of their new design, ideas or products. This scheme provides financial assistance for setting up ‘Business Incubators’ and promotes new ideas, designs, products etc.
Credit Linked Capital Subsidy Scheme:
New technology is provided to the business owners to replace their old and obsolete technology under this scheme,. A capital subsidy is given to the business to upgrade and have better means to do their business. These small, micro and medium enterprises can directly approach the banks for these subsidies.
Frequently Asked Questions (FAQ)
Is MSME updated to Udyam Registration?
Yes, Udyam Registration is updated version of the MSME registration. If any micro, small and medium industries want to start any business; they need to do the registration with MSME/Udyam Registration through online.
Is Aadhar card compulsory?
Yes. Aadhaar card is compulsory for Udyam registration. In case an applicant is other than the proprietor, the Aadhaar card of the partner and the director will be required.
Can existing and new micro businesses both apply?
Yes, an existing and new business can apply for MSME/Udyam Registration, provided the existing unit is functioning and meets the threshold limits for registration. UAM Registration has to be re-registered for Udyam registration to avail the benefits of MSME.
What is the validity of the certificate?
There is no expiry of the Certificate. As long as the entity is ethical and financially healthy there will be no expiry of the Udyam Registration.
Can trading companies register under MSME?
Yes. It also covers trading, manufacturing and service industries. Trading companies are just like middlemen between manufacturer and customer. They also covered under the scheme with effect from July 2021 by govt of India due to this pandemic situation Covid19.
Do I need multiple registrations for manufacturing plants in different cities ?
No. The MSME/Udyam Registration Certificate is for a single entity irrespective of multiple branches or plants. However, information about multiple branches or plants must be furnished.
- Syrphyy Venkatesh
