How to stand out your MSME business?

MSME, Micro, Small and Medium Enterprises, launched by the government of India, aims to convert homemakers into Entrepreneurs. MSME is a tool that devises woman empowerment to a greater extent. Having a startup or doing a business is not gender-specific. Its an open platform for anybody who’s got the passion and throng to achieve. Small scale industries boost the economy of the nation. Planning to become an entrepreneur? Don’t settle for terms like, small, big, but the effort is completely yours, you are the owner, and it’s worth it.

It is merely categorized on the basis of the investment

  • Micro – less than INR 10 Lakhs
  • Small – Less than INR 2 Crores
  • Medium – Less than INR 5 Crores

MSME REGISTRATION ONLINE

Firstly, register your enterprise in the online portal. There’s no cost for registration. The official, authentic portal is the Udyam Registration Portal. No documents are required to be uploaded during the time of registration, online. Aadhar number is more than enough for registration. An OTP will be sent, later, enter the PAN and the type of organization. Fill in the details of the enterprise.

After the completion of registration, a permanent registration number is generated and a certificate is generated online, after a few days.

BENEFITS OF MSME REGISTRATION

  1. The certificate generated after registration is highly useful to procure loans from banks at low interests.
  2. This allows to get government tenders at ease as Udyam Portal is linked to the government’s E-Marketplace and accessible state government portals that are associated with other market place and e-tenders.
  3. MSME registration exempts’ tax.
  4. An MSME registered startup can acquire several concessions.

What is required for registration?

  • Address of the startup and proof for the address
  • Bills for equipment and machinery purchase
  • Industrial license’s copy
  • Aadhar card
  • PAN card
  • Bank account details – account number, IFSC code, NIC code
  • Start date of the business
  • Employee and their details, if any
  • Partnership details, if any
  • Memorandum of Association
  • A copy of resolution passed in the meeting

Udyog Aadhar 

The MSME registration number and this aren’t the same. Udyog Aadhar is a registration number that is received after the registration at the Udyog Aadhar portal. This is a 12-digit number. Registration at the Udyog portal is must and it should be done before the registration at the MSME website. There’s no registration fee.

Loan for MSME

MSME businesses provide employment opportunities to more than 500 million workers. This adds 40% to the country’s industrial yield. Loans range from 50,000 INR to 50 Lakhs INR and is highly flexible both in terms of repayment and interest rates. The repayment can be done between 12 to 36 months with 1.5%-2.5% interest rates. There are no processing charges for the loan, too.

For one application, there can be multiple lenders, this increases the probability of getting loan. Loan for MSMEdoesn’t require any collateral or documentation. The process is very simple. Also, applying online makes the process even simpler. Lenders in cyberspace track applications and get of the time constraint. The time taken for online loan approval is petty low only when the documents and the eligibility is verified.

Who is eligible for MSME loan?

Businesses that are suitable for the MSME loan only if

  • IT returns are filed for the past 2 years
  • The unit is operational for the last one year
  • It is filed for GST returns for the last 12 months

Benefits of MSME loan

  • No collateral is required
  • Online processing is time-saving
  • Reduces the interest rate
  • Funds are released sooner
  • Applicants don’t lose control over their enterprise

What is the loan used for?

  • Use the loan amount to build up the infrastructure and other amenities for your industry.
  • Use it to meet the capital needs
  • Invest in new machineries
  • Use it for employees.

Are you ready to start your startup yet?

With all the procedure and advantages discussed above it’s an easy step ahead to start your own business if you are fervidly passionate about what you want to do! Identify your strengths and likes, plan up your set up and requirements. Register your enterprise with MSME, procure loan for MSMEbuild up strategies, set up your network, digitalize your work, start earning! Your success is the nation’s success and contributes to the growing economy!