The Aadhaar number is the only requirement for enterprises to register themselves. The government notified these norms on 26th June 2020. Online registration no longer requires enterprises to upload certificates and documents. A self-declaration can be used to provide these details. It is named 'Udyam Registration' and is made possible by the successful integration of the registration process with those of GST and Income Tax. According to GSTIN and PAN, the self-declaration details will be verified by the authorities. Those who do not have Aadhaar can approach the Single Window Systems along with their identity proof for Aadhaar enrollment request, bank passbook copy, voter ID card, driving license, or passport. The Single Window Systems will facilitate registration after receiving the Aadhaar number.
Introduction:-
Every year, the 27th of June is observed as UN MSME Day to honour the growth of micro, small and medium enterprises and institutions that are vital to a country’s growth. The MSME (Micro, Small, and Medium Enterprises) sector is one that contributes heavily towards India’s socio-economic well-being and development.
MSMEs generate more than 120 million opportunities with regard to employment and hence function as the second-largest job opportunity creator in India. Such Micro, Small and Medium Enterprises, account for about 30% of our country’s entire output and India has over 65 million such MSMEs functioning within its boundaries. Here’s a look at the contribution such Micro, Small and Medium Enterprises make towards our economy and how we can help.
Significance:-
The micro small and medium enterprises are now accepted as an engine of economic growth and also for promoting equitable and sustainable development.
This is so because MSMEs make up around 90% of all economic institutions in most economies and are often credited with creating the highest employment growth rates and therefore, are responsible for a significant share of industrial production and exports.
As they are agile and dynamic institutions, they are more flexible than most other enterprises, allowing them to be innovative, adaptive and reformative to an extent wherein they can survive economic downturns and recessions. They also have significantly lower capital costs, are easier to set up and also help in industrialization, reduction of regional and economic imbalances and allows a more equitable distribution of wealth.
Free MSME Registration
On the occasion of MSME DAY 2019, Vakilsearch is happy to provide FREE MSME registration service to all the business owners. Wondering how? – The answer is simple.
- Review us on Facebook and Google.
- Send the screenshots to support@vakilsearch.com
- Click the link – http://bit.ly/MSME_REG and enter basic details
- One of our service experts will contact and guide you to get your MSME Udyog Registration
- For further information, contact us at +91 7200 365 365 and you can also reach out to us through our social media handles.
Benefits for MSME
- Cheaper bank loans
- Reduced interest rate as low as 1 to 1.5%
- Offers tax rebates
- Allows up to 15 years of carrying forward of credit for minimum alternate tax (MAT)
- Several government tenders are only for MSME Industries.
- Easier access to credit.
- Reduced cost of setting up industry
- Higher preference while applying for government license or certification
Documents Needed
- Business Address Proof- Possession Letter/Sale Deed/Property Tax Bill
- Copies of Sale Bill and Purchase Bill
- Partnership Deed/ Memorandum of Association and Article of Association
- Copy of Industrial licenses and Bills of Machinery Purchased
The Money Issue
The Indian economy has been growing exponentially towards new heights in the past decade or so, but even with such high growth rate, the rate at which financial inclusion is seeping in is rather lacklustre. Arun Jaitley, finance minister of the previous Modi-govt. has also touched upon this subject more than once by stating that even after making conscious efforts to bring a change around with regards to financial inclusion, the government has failed to reach the target it set out to achieve.
The World Bank’s Global Findex Database report states that more than 190 million Indians do not have a bank account of their own, making India come in second, just behind China in the list of nations with an unbanked population. With regards to life cover policies as well, it was found that the number issued does not even cover one-third of the entire Indian society, and it is such problems that MSMEs can help with precisely.
Sustainability
The MSMEs provide jobs for people in tier II and tier III cities in India, but they also give them financial security and independence.
Since 2015, former union minister Giriraj Singh, independent charge of micro, small and medium enterprises, helped create more than four crore jobs, and this number is expected to grow to five crores in the next year.
Even though they are called India’s backbone, several factors make them difficult to sustain, including lack of access to capital and marketing channels, burdensome regulations and a plethora of legal paperwork. As far as opening MSMEs are concerned, India ranks as low as 156 in a tally that lists 190 countries for ease of opening a new venture.
Financial Relief
While the demonetisation drive and introduction of the new GST slab hit MSMEs hard, non-banking financial companies were indeed a saving grace for such micro, small and medium enterprises. Due to technological advancements from both ends, such NBFCs are now able to hand out loans at a faster and more efficient pace. The government has also pledged its support for registered MSMEs by announcing several schemes and initiatives to make it easier for MSMEs to have access to credit sources.
Initiatives
A major plan is to offer loans up to ₹ 1 crore in just 59 minutes with only a 2 percent interest subsidy and a five percent discount for exporters. It has also been proposed to set up 100 technology centres to assist micro, small and medium enterprises. The MSME sector in India will undergo a paradigm shift through such initiatives. Developing countries such as India rely heavily on institutions such as MSMEs to create jobs, boost GDP growth and provide financial independence to the masses.
Conclusion
Hopefully, we have answered your concern sufficiently; however, if you need additional assistance, please do not hesitate to comment.
FAQ:
How to get a GST certificate?
After the government has allotted the GSTIN, you can download the GST certificate from the GST Portal anytime you want. Understand the procedure for GST registration and GST returns here.
Whether all Companies has to file MSME Form I?
Not all, only the specified companies have to file MSME I form but also the outstanding amount to MSMEs suppliers that exceed 45 days can do the same. More on Income Tax Return Filing.
What is e-filing utility provided by the Income-tax Department?
The e-filing utility that you download from the income tax website offers instructions on how to file the income tax returns. The entire process is explained in this utility. Learn more about ISO Certification.
What is ISO?
ISO which is also referred to as the International Organization for Standardization is the top originator of global values in the world. More info on NGO Registration in India.
When is an NGO eligible for Government funding?
The Government provides funding to NGOs after 3 years only. It may take only 1 year in certain cases where the project is approved beforehand. More about Udyog Aadhar Registration.
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