MSME is one of the most popular initiatives by the government of India. The act was launched back in 2006 as the MSME Development Act. In the year 2020, the act was revised and the new revisions came into effect from 1st July 2020. A business can apply for the MSME certificate online on the Udyam portal. This is why the act is also commonly called the Udyam registration.
MSME stands for Micro, Small, and Medium Enterprises. Simply put, the MSME Certificate is the proof of recognition of the business by the government of India. Upon passing the criteria set by the MSME Ministry, small, micro, and medium enterprises can get the MSME certificate. This one document opens doors to various government-backed benefits. Once you pass the criteria, you may print a Udyam certificate from the website and access various MSME benefits aided by the government. Read on to learn how to get an MSME certificate online without any hassle!
Benefits of the MSME Certificate
One of the quintessential requirements for any business is capital. Business loans may be needed to expand the business or purchase new machinery. This is one benefit of having the MSME certification. It let’s you access capital backed by the government of India.
Here is a list of various benefits of having MSME certificates:
- Credibility building
The MSME certificate is a sign of credibility for your business. It boosts your presence in the market and adds the tag of authenticity to your business. Thus, your business can attract more attention and opportunities in the market.
- Trademark subsidies
With the MSME certificate, you also become eligible for subsidies. You may get subsidies on the total expense of filling a patent or trademark.
- Access to government initiatives
Once you have your small or medium enterprise registered on the udyam portal, you can access multiple benefits offered by the government of India. For instance, you can access infrastructure development, credit guarantees, marketing, etc.
- Access to funds
With an MSME certificate, it becomes easier to avail loans. The certificate acts as a trust factor for the lender and you may get lower interest rates as well.
Eligibility Criteria for MSME Registration
The ministry of MSME has set certain eligibility criteria for businesses. The eligibility criteria was revised in 2020. So, let’s have a quick look at the eligibility before understanding how to apply for MSME Certificate. These are:
- Individuals
- Startups
- Business owners
- Entrepreneurs
- Private or public limited company
- Partnership firm
- Sole proprietorship
- Limited Liability Partnerships (LLPs)
- Self Help Groups (SHGs)
- Co-operative societies
- Trusts
The following are the criteria to be classified as small, medium, or micro enterprises:
- Micro business is the one that has an annual turnover below ₹5 crore and machinery investment below ₹1 crore
- Small enterprises are the ones that has an annual turnover under ₹50 crore and less than ₹10 crore investment
- Medium businesses are the businesses that make annual turnover below ₹250 crore and does not exceed investment limit of ₹50 crore.
Documents Required for MSME Registration
Before you sit down to register your business on the udyam portal, make sure to have these documents with you:
- Aadhar card
- PAN card
- Address of business location
- Bank account number
- Brief of business
- NIC code of 2-digits
- Details of business investment and turnover
- Deed of partnership
- Bill copies of sales and purchases
- Business licence
- Bill copies of machinery.
How to Download the MSME Certificate?
One of the common questions that may pop-up in your mine is how to get an MSME certificate. Well, you can download MSME certificate online within a few clicks. The steps involved are:
- Visit the official website of udyam registration
- Now click on “print/verify” option
- Select “print udyam certificate”
- Enter your udyam registration number in the format given
- Click on the “generate OTP option”. You may choose your mobile or email ID to receive the OTP
- Enter OTP and validate the process
- Once you have logged in, you can print your udyam registration certificate
In case you forgot your udyam registration number, you can download it using your pan or Aadhaar number. Wondering how to download MSME certificate with a pan number or aadhar number? Click on the forgot Udyami registration number. Follow the procedure ahead to get your certificate downloaded.
Download the MSME Certificate Online: Few Tips to Remember
If you have recently applied or planning to apply for the MSME certificate, you must learn a few tips about downloading MSME Certificate, like:
- Keep required details
Before you sit to download the MSME certificate, make sure to have the required details with you. It helps you avoid the rush while you are your system. You must have with you, your mobile number, aadhar/pan number, udyam registration number, and the registered mobile for OTP.
- Review the certificate
Once you download the certificate, make sure to go through it properly. Check for any misprint, wrong information, or wrong spelling. You can get these corrected in case of any problem
- Use udyam website only
When you are ready for MSME registration certificate download, make sure to avoid third party websites. Try to refer to the official udyam website for download MSME certificate for free and without any hassle.
Frequently Asked Questions
- Does MSME certificate require yearly renewal?
No. Udyam registeration do not require renewal on a yearly basis. However, there may be updates regarding compliance that the registered businesses must follow.
- What does MSME stands for?
MSME stands for Micro, Small, and Medium Enterprises. These are the companies or businesses that do not exceed an annual turnover of ₹250 crore.
Through MSME certificate, the government confirms the acknowledgement of the businesses and now the business is eligible to receive various government aids and subsidies.
- What is the MSME criteria for businesses?
There are three types of businesses registered under MSME; small, medium, and micro. The MSME registration eligibility differs for the three:
- Micro business
- Annual turnover below ₹5 crore
- Machinery investment under ₹1 crore
- Small business
- Annual turnover below ₹50 crore
- Machinery investment under ₹10 crore
- Medium business
- Annual turnover below ₹250 crore
- Machinery investment under ₹50 crore.
- Where can I download the MSME certificate?
You can easily download MSME certificate online through the official website of Udyam. Login using your mobile number and download the certificate in a few clicks.
- Who can apply for MSME certificate?
As aforementioned, businesses with specific turnover and investment can apply for the MSME certificate.
The owner of the business may be an individual, sole proprietorship, entrepreneurs, trusts, startup, etc. Make sure to go through the recent updates when you plan to apply for the MSME certificate.
Conclusion
Micro, medium, and small enterprises are some of the largest economic contributors in India. Without the MSME sector, the economy remains incomplete. With an increasing participation of more and more small and medium businesses, the government has also made it easier for enterprises to avail benefits. From access to low-interest business loans to better marketing and authenticity, MSME certificate brings a lot for businesses!
