While MSMEs are required by the Government of India to register their business mandatorily, many businesses go through the registration process to better their chances of getting loans or getting legal support in legal-related matters. For MSME registration, one can visit the official link for MSME registration. The process is simple for registration and the sole proprietors don’t have to go through much hassle.
A proprietorship firm is quite a common form of business in India and is a common entry where entrepreneurs register their business. The fact that this model of business doesn’t require or that there is no other party involved is why this type is common. Anyone can register a proprietorship firm in Udyam registration under the MSMED Act. The MSMED Act facilitates the development and enhancement of MSMEs and everything that is connected with the enterprises.
Udyam registration is a process of MSME registration that was launched on the 1st of July, 2020. This new process was launched to ensure that the new entrepreneurs find it easier to register their business and benefit from the advantages that come with the registration. Sole Proprietorship Registration in India doesn’t require many documents, except for a single aadhar number.
Even though the process of MSME Registration in India is quite easy, it is better to know the process beforehand. Take a brief look at the process here:
- You will need to complete a single form, which can be done both online and offline.
- If you are looking for registering your business in more than one industry, then you will need to register for each industry individually.
- In the form, you will be required to provide details like Aadhar card details, industry name, bank account details, address, etc.
- You will be required to present self-certified certificates.
- After filling in all the details, and uploading all your contents to the website, you will receive your MSME registration number and MSME registration certificate.
- PAN Card of Proprietor
- Aadhaar Card
- Name of the Proprietorship Firm
- Nature of Activity
- Email ID
- Mobile Number Linked with Aadhaar
- Bank Account details
- Address of Principal Place of Business
- Number of Employees working (Men & Women)
- Investment in Plant & Machinery
- GST Number (if registered)
There are several benefits associated with MSME registration, for which reason, many registers their business even though it is not mandatory.
- Bank Loans: All the MSMEs can enjoy collateral-free credit. This initiative is for both old and new enterprises. Getting loans can have cheaper interest rates, sometimes as cheap as 1-1.5% per month.
- Overdraft Interest Rate Exemption: If you are a business or enterprise that have completed your MSME registration, you can avail of a benefit of 1% on the Overdraft, although it would vary from bank to bank.
- Subsidy on Patent Registration: If you are an enterprise with a certificate of MSME registration, you will be given a hefty 50% subsidy.
- Industrial Promotion Subsidy Eligibility: As an enterprise registered under MSME, you are eligible for a subsidy for Industrial Promotion.
- Fewer Electricity Bills: This is available for all enterprise that is registered under MSME, and you can provide an application to the electricity department with the certificate of MSME registration.
- ISO Certification Charges Reimbursement: As an MSME registered enterprise, you can claim remuneration for the charges or expenses that you spent for your ISO certification.
Are You Looking for a Professional for MSME Registration for Proprietorship Firm?
My Legal Clinic is one of the largest providers of legal services and can help you in the process of your MSME registration. With My Legal Clinic, you can register for your MSME in simple steps. The steps could include a thorough check of the files you send to us, appointing an affiliate for your application process, and you will receive your certificate from the government in 15-20 days.