The foundation of the Indian economy, i.e., the micro, small, and medium-sized enterprises (MSMEs) play a major role in exports, employment, and industrial output of the nation. Owing to this, the Indian government acknowledges the value of MSMEs and offers a range of incentives and schemes to help and support their growth and development. However, to access these benefits, businesses need to get an MSME Certificate. To put it shortly, this certificate is a formal acknowledgement that they qualify as an MSME under the government standards.
That being said, let’s walk you through a step-by-step guide on how to obtain the MSME Certificate along with their basics. Take a look.
Importance of MSME Registration Certificate
MSMEs in India are granted an electronic certificate known as the Udyam Registration Certificate, aka MSME registration certificate by the Ministry of MSME. Upon successful completion of the registration process, entrepreneurs obtain the MSME certificate.
Now, those businesses that are looking forward to government incentives, like better access to loans and tax subsidies, must get an MSME registration Certificate. This certificate helps businesses avail the benefits of several government schemes like the Stand Up India Scheme.
However, there is more to these certificates than meets the eye. Businesses that register as MSMEs can easily get a business loan, access to special government tenders, priority sector lending, cheaper interest rates on loans, and exclusive financial support.
Step-by-Step Guide to Obtaining an MSME Certificate
Registering for the certificate on the Udyam Registration page is free of cost. Listed below is a step-by-step guide on how to obtain an MSME certificate.
- Step 1: Prepare Your Documents
Before applying, make sure you have all the necessary documents right beside you. This must include your business address proof, Aadhaar, PAN, bank details, etc.
- Step 2: Registering on the Udyam Portal
- Next up, visit the official MSME registration portal. Head over to the Udyam Registration Portal and click on the “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II.” link.
- Here, you will come across fields like ‘Aadhar number’ and ‘name of the entrepreneur’. Enter the details and click the ‘Validate and Generate OTP’ option.
- At this stage, you will receive an OTP on the registered mobile number (the one linked with your Aadhaar card).
- Check and enter the OTP and select the ‘Validate’ option.
- Step 3: Filling Out the Application
- Upon Aadhar verification, start filling out the rest of the business details. This includes the type of organisation, the name of your enterprise, location, PAN, and bank account information.
- Once you enter the details, click on the ‘Validate PAN’.
- Here, the portal will scrape out and verify your PAN details as an entrepreneur right from the government databases. This might take some time.
- Step 4: Submission and Verification
- After PAN verification, you will see the Udyam Registration form appearing on the screen.
- Here, you need to fill in your personal details and details of their enterprise. This includes your investment and turnover details.
- Next up, tick the declaration box.
- Click ‘Submit and Get Final OTP’.
- Enter the OTP that you receive and submit the form.
- Step 5: Receiving Your MSME Certificate
- At this stage, the details are verified by the relevant authorities. Upon successful verification, the certificate will be sent to your registered email address.
- You can also find out your registration status right from the Udyam Registration Portal.
Who Needs an MSME Certificate?
Businesses in the service and manufacturing sectors that fall within the defined turnover limits can benefit from MSME registration. It does not matter if you are a micro, small, or medium enterprise; the MSME Certificate is a must-have. Although it is not mandatory to get the certificate, you would need government support to grow your business efficiently.
Some of the entities that qualify for MSME registration include:
- Sole proprietorship
- Self-help groups (SHGs)
- Startups, Individuals, entrepreneurs, business owners
- Partnership firm
- Private and public limited firms
- Limited Liability Partnerships (LLPs)
- Co-operative societies
- Trusts
Important Tools to Assist MSMEs
For MSMEs, managing finances and complying with tax regulations is highly important. To make the process easier, there are certain tools that are here to assist MSMEs. One such tool is the Business Loan EMI Calculator. It helps businesses plan their loan repayments by calculating the monthly installments based on the loan amount, tenure, and interest rate. Simply put, it helps with a better working capital management.
Another tool that works like magic is the GST Calculator. It helps businesses calculate their Goods and Services Tax (GST) liability. By determining the accurate GST, MSMEs can process timely payments that will further avoid penalties and make financial management even more efficient.
Summing Up
Summing up, an MSME Certificate is indeed an important document for businesses that require government schemes and support. Upon successful registration, the certificate will be sent over to your email. However, you can also download the certificate from the Udyam registration portal. Head over to the portal and click on the ‘Print Udyam Certificate’ option which would be under the ‘Print/Verify’ section. Here, you need to enter your Udyam Registration Number along with your mobile number. Generate the OTP and click ‘Validate & Generate OTP.’ Once you receive the OTP via mobile or email, validate it to log in. Upon logging in, you can print your MSME registration certificate.
