Contributing to around 50% of total exports, 45% to the manufacturing sector’s output and comprising around 95% of total industrial units, MSMEs are the backbone of the Indian economy. Typically, MSMEs are classified into two main categories: Manufacturing and Service, and have a 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 due to the fact that you can avail MSME registration benefits like tax rebates, government service privileges and simplified borrowing terms that the government extends to this crucial sector.
In terms of borrowing, getting loans at an affordable cost is pivotal to the early success and growth of any MSME. This is possible when you avail the Bajaj Finserv MSME Loan as it can help you meet market demands with ease. You can upscale production by investing in newer machinery or improving your infrastructure, all of which must be done as and when the demand exists so that you avoid any slumps.
When it comes to overall development, MSME registration plays a crucial role in your enterprise’s growth. Therefore, to help you get started, take a look at the MSME registration process in more detail and the benefits that come with being registered.
MSME registration online
It is important to note that 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 any 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
- After successfully verifying the details, you will be redirected to the form you have to fill
- Fill in all the appropriate fields and pay careful attention while filling 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 any fee for MSME registration?
It is also important to note that there are no MSME registration fees that you have to pay; the entire process is free of cost.
Additional read: Documents required for MSME loan
Documents required for MSME registration
Before registering your business, ensure that you have these documents ready to minimise any delays. Here is a list of the documents you may require for 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.
- Partnership deed: This document is important if your enterprise is a partnership. In 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, then the required documents include the possession letter, allotment letter or property tax receipt. In case of rented premises, you need to have a rent receipt, utility bills and an NOC (No Objection Certificate) from the landlord
- Purchase Bill and Sale Bill: A sale bill is one that is generated for each end product supplied, while the purchase bill is one that is acquired upon purchase of raw materials. These documents provide proof of your business transactions
- Licences and Machinery bills: The industrial license obtained via application to the Government of India and any bills or receipts against machinery purchases are to be submitted as well in certain cases as per the nature of your business
Additional read: What are the benefits of MSME loans?
MSME registration benefits
Here is a list of MSME Registration benefits
- 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 loans with a reduced interest rate
- Your firm can obtain credit easily
- Your enterprise gains preference for government certification
- You can access to exclusive government tenders.
As mentioned earlier, a key benefit of MSME registration is quick access to needed funding and low interest rate on loans. You can enjoy both these advantages along with a few more when you choose the Bajaj Finserv MSME Loan. With Rs. 20 lakh as a sanction for any business-related expenses, and you can avail this loan without needing to pledge any collateral. Further, thanks to the lenient eligibility criteria and minimal requirement for documentation, you can apply easily and get approved in under 24 hours.
What’s more, you can also choose the Flexi facility offered here, and withdraw on the go, in parts, as per business needs and pay interest only on the amount you actually utilise. You can also choose to pay interest-only EMIs until the end of the tenor, and repay the principal when you have received payments from clients. 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 approval for your MSME today.
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