MSME stands for micro, small, and medium enterprises, and the Government of India has several schemes and incentives in place to promote and support these enterprises. To avail of these benefits, businesses need to register for the MSME certificate, also known as the Udyog Aadhaar certificate. In this article, we will provide a step-by-step guide for businesses to register for the MSME certificate and its significance in getting a business loan.
Step-by-step guide for MSME certificate registration
The process for MSME certificate registration is straightforward and can be completed online. Here are the steps that businesses need to follow:
- Step 1: Go to the Udyam registration portal.
- Step 2: On the homepage, select the option 'For new entrepreneurs who are not registered yet as MSME or those with EM-II.'
- Step 3: Input the 'Aadhaar number' and the 'name of the entrepreneur,' then click the 'validate and generate OTP' button.
- Step 4: An OTP will be sent to the mobile number associated with the Aadhaar card. Enter the OTP and click the 'validate' button.
- Step 5: Upon successful Aadhaar validation, proceed to the PAN verification page. Enter the 'type of organisation,' 'PAN' number, and click the 'validate' button. Also, specify whether you filed the previous year's ITR and if you possess a GSTIN.
- Step 6: The Udyam registration application form will appear. Complete all necessary details, including the entrepreneur's name, mobile number, enterprise name, plant/unit location, enterprise address, enterprise status, bank details, unit activity, NIC code, and employment count.
- Step 7: Furnish details on investment in plant and machinery, turnover, and select the declaration. Click the 'submit' button and obtain the final OTP.
- Step 8: Enter the final OTP received and submit the form. Your Udyam e-registration certificate will be sent to your email.
By adhering to these steps, MSMEs can efficiently accomplish the Udyam registration process and unlock the benefits and support extended to registered enterprises under the MSME category. You can download MSME certificate at any time you need.
Significance of MSME certificate in getting a business loan
The MSME certificate plays a significant role in securing business loans from banks and other financial institutions. By registering for the MSME certificate, businesses can avail of the benefits offered under various government schemes and incentives, making them more creditworthy. Some of the benefits of MSME certificate registration for availing business loans include:
- Lower interest rates: Banks and financial institutions offer lower interest rates to businesses with an MSME certificate as they are perceived as more reliable and creditworthy.
- Quicker loan approval: Businesses with an MSME certificate can enjoy a faster loan approval process.
- Access to a wider range of business loans: Getting an MSME certificate opens up opportunities for businesses to access a wider range of business loans, such as working capital loans and equipment financing loans.
Registering for the MSME certificate is a crucial step for small businesses and enterprises to avail of various government schemes and incentives. Businesses can easily complete the process online, making it simple and convenient. Once registered, businesses can take advantage of the benefits offered under government schemes, including easier access to business loans at lower interest rates. If you are a small business owner or an entrepreneur, make sure to register for the MSME certificate to take advantage of these benefits and grow your business.
