Micro, small and medium enterprises (MSME) are typically classified into two main categories: manufacturing and service. They have great scope for growth in the Indian economy. Regardless of what kind of business you own or aim to start, the first step you should undertake is MSME registration. This is mainly to avail of MSME registration benefits like tax rebates, government service privileges, and simplified borrowing terms that the government extends to this crucial sector.
Getting affordable loans is pivotal to the early success and growth of any MSME. This is possible when you avail of the Bajaj Finserv MSME Loan, as it can help you meet market demands with ease. Upscale production by investing in newer machinery or improving your infrastructure to meet growing demand.
Registration can play a crucial role in your MSME’s overall growth. We have explained the MSME registration process in detail along with its benefits.
MSME registration online
You can register your small or medium-sized enterprise by filling the MSME registration form online or offline. However, the online Udyog Aadhaar method is convenient and reduces the chances of error.
Here is the list of MSME registration steps to be followed.
- Log on to the official MSME registration website.
- Enter your Aadhaar number and name in the fields denoted as ‘Aadhaar number’ and ‘name of entrepreneur’.
- Click on ‘Validate and generate OTP’ and enter the OTP you receive on the registered mobile number.
- After successfully verifying the details, you will be redirected to the form you have to fill.
- Fill in all the appropriate fields. Be particularly careful when you fill the ‘Major activity’ and ‘national industry classification code’ fields.
- After entering the details, recheck your entries to ensure that there are no errors.
- Scroll to the bottom of the page, and click on ‘Submit’.
- You will receive another OTP on your registered mobile number.
- Enter it and click the final ‘Submit’ button to complete your application.
Is there a fee for MSME registration?
There are no fees for MSME registration. The entire process is free of cost.
Additional Read: Documents required for MSME loan
Documents required for MSME registration
Ensure that these documents are ready before starting the registration process to minimise delays. Here is a list of documents that you may require.
Now that you are aware of the MSME registration procedure and the documents required, look at the benefits that you enjoy.
- Partnership deed: This document is important if your enterprise is a partnership. In the case of a company, you need to submit a photocopy of the Memorandum of association and articles of association.
- Business address proof: If your business premises are self-owned, the required documents include the possession letter, allotment letter, or property tax receipt. In the case of rented premises, you need to have a rent receipt, utility bills, and an NOC (no objection certificate) from the owner.
- Purchase bill and sale bill: A sale bill is generated for each end product supplied, while the purchase bill is acquired upon purchase of raw material. These documents provide proof of your business transactions.
- Licences and machinery bills: The industrial licence obtained from the Government of India and any bills or receipts against machinery purchases are to be submitted depending on the nature of your business.
Additional Read: What are the benefits of MSME loans?
Benefits of MSME registration
Now that you’re aware of the MSME registration procedure and the documents required, take a look at the benefits that you enjoy.
- You can claim tax rebates offered to the MSME sector.
- It allows you to carry forward the minimum alternate tax (MAT) credit for up to 15 years.
- You can avail of loans at a reduced interest rate.
- Your firm can obtain credit easily.
- Your enterprise gains preference for government certification.
- You can get access to exclusive government tenders.
As mentioned earlier, a key benefit of MSME registration is quick access to funds and a low-interest rate on loans. You can enjoy both these advantages and a few more when you choose the Bajaj Finserv MSME Loan. You can get up to Rs. 80 lakh as a sanction for any business-related expenses without any collateral. The lenient eligibility criteria and minimal documentation make the application process easy and ensure approval within 24 hours.
You can also choose the Flexi facility we offer and withdraw in parts, as per business needs, paying interest only on the amount you utilise. You can also choose to pay interest-only EMIs during the initial part of the tenure and repay the principal later. This way, you can manage your cash flow better and save up to 45% on EMIs for smoother working capital management. To get started, check your pre-approved offer to expedite your application and get hassle-free funds for your MSME today.
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