The government's online MSMEs registration portal  reached 3 crore registrations in a mere three years and four months. With more than 35 lakh businesses registered, Maharashtra topped the state-based registration table. The top five states by number of registered corporations were Maharashtra, Tamil Nadu (20.5 lakh), Uttar Pradesh (19.13 lakh), Gujarat (14.87 lakh), and Rajasthan (14.84 lakh).

Out of the 3 crore enterprises registered on the platform, 2.93 crore are micro-enterprises, making up the majority of the registered businesses. 53,935 medium-sized businesses and 5.78 lakh small businesses were present on the platform. In all, 14.87 crore individuals were employed by them, of which 3.37 crore were women.

1.49 crore service providers and 53.41 lakh manufacturing units were represented among the GST-registered MSMEs in Udyam. Out of these, 1.92 lakh are exporting businesses that have shipped goods and services for more than Rs 15 lakh crore in total.

The implementation of MSME registration is one of the many steps the Indian government has made to encourage and support the expansion of MSMEs in the nation. Small businesses can get a range of government benefits, including credit availability, subsidies, and other incentives, by registering as MSME's. Any business that fits the eligibility requirements can apply for voluntary registration. You can complete the simple online registration process via the Udyog Aadhaar portal.

We will go into the specifics of update MSME registration in India in this post, covering the requirements for qualifying, the advantages of registration, and the registration procedure. We will also talk about the difficulties MSMEs in India face and the steps the government is taking to solve them.

Appreciation MSME

Micro, Small, and Medium-Sized Enterprises is an acronym for MSME. These businesses are essential to the expansion and development of the Indian economy. MSMEs engage in operations related to manufacturing, processing, packaging, and services. They support millions of jobs and contribute significantly to the GDP of India, making them the backbone of the country's economy.

Based on their investment in plant and machinery or equipment, MSMEs are categorized in India. The following is the classification:

Microbusinesses: Up to Rs. 1 crore in investment

Up to Rs. 10 crore in investment for small businesses

Up to Rs. 50 crore in investment for medium-sized businesses 

MSMEs can register with the government to take advantage of a number of programs and perks. Online registration is available, and it is a straightforward process. MSMEs can receive subsidies, tax breaks, and credit guarantees after registering.

 In order to assist MSMEs, the government has also launched a number of programs, including the National Small Industries Corporation (NSIC), the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), and the Prime Minister's Employment Generation Programme (PMEGP).

Procedure for MSME Registration

In India, registering an MSME is a free online process that is easy to understand and uncomplicated. The Ministry of Micro, Small, and Medium Enterprises oversees the registration procedure, which is designed to give small and medium-sized enterprises a number of advantages.

The applicant must fill out the registration form on the Ministry of MSME's official website in order to register for MSME. Basic details regarding the firm, including its name, address, and nature of its activity, are required on the form. The application must also include information regarding the ownership of the company, including the owner's name, ownership type, and workforce size. 

The applicant will obtain an MSME certificate upon submission of the registration form, which they can utilize to access further government incentives. The certificate includes vital information about the company, including its name, address, and kind of operation.

 The ability for firms to take advantage of several government programs and subsidies is one of the primary advantages of MSME registration. For example, companies that are MSME-registered are qualified for a number of tax breaks and incentives. They can also get subsidies and low-interest loans for a range of business endeavors. Additionally, firms can access a variety of government contracts and tenders by registering as an MSME.

What benefits come with registering as an MSME?

The registered firms in India can reap numerous advantages from MSME registration. The following are some of the main benefits of obtaining MSME Registration:

1. No expiration date

As long as the organization maintains moral standards and sound financial standing, Udyam/MSME Registration Certificates remain valid.

2. Availability of Government Programs and Rewards

MSMEs that are registered under the MSMED Act, 2006, are eligible to participate in a number of government-sponsored programmes and incentives. These consist of financial support programs such as subsidies and credit guarantee plans. Furthermore, registered MSMEs are eligible to take part in a range of government-organized trade shows and exhibitions.

3. Banks' Priority Lending

MSMEs in India receive priority loans from banks and other financial institutions, meaning they are given preference when authorizing credit. To take advantage of this incentive, MSME Registration is required.

4. Defense Against Postponed Payments

MSMEs are shielded from buyers' late payments by the MSMED Act, 2006. In the event that payments are delayed, registered MSMEs may file a complaint with the relevant authority and request remedy.

Getting to Know Tendering Opportunities

Participation in government tenders, which may be a substantial source of business for small and medium-sized firms, is open to MSMEs registered under the MSMED Act, 2006.

6. Tax Advantages

Under the Income Tax Act of 1961, MSMEs are eligible for a number of tax benefits, including exemptions from several taxes and capital gains tax. Furthermore, the GST exemption threshold for MSMEs has been raised from Rs. 20 lakhs to Rs. 40 lakhs, meaning that small companies with annual revenue up to Rs. 40 lakhs are not required to register for GST.

7. Credibility and Brand Building

Establishing reputation in the market and developing a brand are two benefits of MSME registration. It may also aid in drawing in investors and clients.