MSME Registration Support for Indian Startups

Advantages of MSME Registration

Subsidies

The government of India provides various incentives & subsidies to the MSME sector. Only registered entities are eligible for the Government subsidies.

Bank Loans

MSME Sector gets ease in applying for government micro business loans and other such related schemes. Banks offer collateral free loans and reduced interest rates to these entities.

Financial Support

Government provides financial support for participating in foreign expos to showcase products of registered entities.

Govt. Tenders

MSME’s gets exemptions while applying for Government tenders. They are even given preference in allocation of Government tenders.

ISO Registration

The government provides reimbursement of payment of consultation fee made for obtaining ISO registration.

License

There are various relaxations provides to MSME while obtaining registrations under different laws and approvals to obtain licenses.

Waiver

Stamp Duty and Registration Fees is waived in many cases for the MSME entities. There is subsidy for patent registration, NSIC performance and Credit Ratings.

Payments

The government has provided protection against delayed payments to MSME. Companies needs to intimate ROC where payment outstanding to MSMEs suppliers is exceeding 45 days. There is faster dispute resolution mechanism for MSME.

Reservation

There are various products which reserved for the exclusive manufacturing by MSME. These products can only be procured from MSME.

Process of MSME Registration

There is an online process for MSME registration.

1. Register on Portal
2. Fill Application Form
3. Submission of Application
4. Issuance of Certificate

Who should get this registration?

Any and every type of business enterprise from private limited company, public limited company, sole proprietorship, partnership firm to limited liability partnership, hindu undivided family, one-person company, co-operative society and association of persons can obtain MSME/Udyam Registration

Why should you get this registration?

MSME/Udyam Registration comes with numerous benefits and various relaxation to take away some burden from growing enterprises and all eligible enterprises should get themselves registered under MSME/Udyam.

Documents/ Details required for Startup Registration

Copy Of Aadhar Card

In case of Proprietorship – Aadhar Card of Individual
In case of Partnership Firm – Aadhar Card of Managing Partner
In case of HUF – Aadhar Card of Karta
In case of Company/LLP/Cooperative Society/Society/Trust – GSTIN and PAN of the organization and Aadhar Card of authorized Signatory

Mobile No & Email Id

Mobile No & Email ID

PAN Number

Bank Account Details

Bank Account details & IFSC Code

Business Information

Partnership deed/MOA & AOA
Note on business activity of the entity

Sale & Purchase Bill

Copy of Sales & Purchase bill

No. of employees

Details of No. of Employees.

Investment in plant & machinery

Details of Investment in Plant & Machinery

Your organization may fall in one of the classification
depending on the below criteria:

Classification	Enterprise
Micro Enterprise	Upto ₹1 crore of investment in Plant & Machinery or Equipment AND Upto ₹5 crore of Turnover
Small Enterprise	More than ₹ 1 crore but upto ₹10 crores of investment in Plant & Machinery AND More than ₹ 5 crore but upto ₹50 crores of Turnover
Medium Enterprise	More than ₹ 10 crore but upto ₹50 crores of investment in Plant & Machinery AND More than ₹ 50 crore but upto ₹250 crores of Turnover

Re-Registration of Existing Enterprises

All existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after the 1st day of July, 2020 till 31st March, 2021
All enterprises registered till 30th June, 2020, shall be re-classified in accordance with this notification.
The existing enterprises registered prior to 30th June, 2020, shall continue to be valid only for a period up to the 31st day of March, 2021.

Update of Information & Transition Period in Classification

An enterprise having Udyam Registration Number shall update its information online in the Udyam Registration portal, including the details of the ITR and the GST Return for the previous financial year and such other additional information as may be required, on self-declaration basis.
Failure to update the relevant information within the period specified in the online Udyam Registration portal will render the enterprise liable for suspension of its status.
Based on the information furnished or gathered from Government’s sources including ITR or GST return, the classification of the enterprise will be updated and a communication will be sent to the enterprise about the change in status, if any.

What Our Clients Say

Discover why businesses love working with Startup Movers!

Really happy with the professional way in which the work has been done (y). Worked with other CA’s previously, Startup movers were the best one- whom we worked with

Jani Pasha
CEO - Lokal App

Excellent service at affordable prices. They are very punctual and work really hard to get the job done.

Mr. Puranjay Singh
CEO - Mystery Monks

These guys are really good particularly their secretarial part. Very professional very prompt.

Nikhil
Cofounder - Finbox

Excellent!!…. Excellent!..
Startup Movers helped us with our company incorporation & re-correction was done quickly and everything that goes with it has done good.

Karishma
CEO - Cavaxion

The best part about working with StartUp Movers is that they understand the DNA of a startup very well, and are flexible in their approach. This makes them very compatible partners for any start-up.

Chetan Kapoor
Edulever

I have had great experience with Shivani. Right now the only structured department in my organisation is Finance, grateful to the team of startup movers.

Kirti Goel
COO, P-Tal

These guys are very professional and perfect in their areas of expertise. They know their customers’ pain point very well. From company registration to compliances, they have delivered the best. For an early stage startup, these guys act as a “Virtual CFO”.

Nav Agarwal
Pep.live

Working with the Startup Movers team has been extremely great in all aspects. These guys are the best at the best affordable prices in the market.

Nikhil Kumar Parmar
Datapeace AI

We wanted to setup employee benefit plans such as ESOP for our startup and startup movers team were the perfect fit to do those policy drafting and helping with the correct statutory filing. They have framed the policy as a perfect fit for our requirement and in very timely manner.

Ankur Arora
Idan Motor

Since the start of my entrepreneurship journey, Start-up Movers have been managing our Secretarial Compliance (including fundraising compliances), and financial compliance (such as GST, TDS, PF/ ESI, PT) The team has been phenomenal. They are well-versed with all MCA rules and regulations.

Ankur Goyal
Seamless

So far

Achievements

10 +

Years of Experience

3000 +

Startups Served

80 +

Team of Experts

3 +

Unicorns Produced

Frequently asked questions

Everything you need to know about the product and billing.

If enterprise involved both types of activities and if major work involves in Manufacturing and small portion of activity involves in Service Sector then the Major Activity Type can be selected as Manufacturing and if major work involves in Services and small portion of activity involves in Manufacturing then the Major Activity Type can be selected as Services.

At present Aadhaar Number is mandatory for registration under Udyam Memorandum. In the absence of Aadhaar Number, no other medium is specified for MSME Registration.

The name of the owner cannot be changed in Udyam but the Business name can be changed in Udyam. For this, Update Udyam tab needs to be visited on the Udyam Portal.

The businesses need to satisfy certain criteria for classifying as MSMEs to obtain MSME Registration. Following are the conditions that the enterprises need to know so as to classify as MSME and be eligible to obtain MSME / Udyam Registration:

Classification	Enterprise
Micro Enterprise	Upto ₹1 crore of investment in Plant & Machinery or Equipment AND Upto ₹5 crore of Turnover
Small Enterprise	More than ₹ 1 crore but upto ₹10 crores of investment in Plant & Machinery AND More than ₹ 5 crore but upto ₹50 crores of Turnover
Medium Enterprise	More than ₹ 10 crore but upto ₹50 crores of investment in Plant & Machinery AND More than ₹ 50 crore but upto ₹250 crores of Turnover

Exports of goods or services or both, shall be excluded while calculating the turnover.
Information as regards turnover and exports turnover for an enterprise shall be linked to the Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN.
The turnover related figures of such enterprise which do not have PAN will be considered on self-declaration basis for a period up to 31st March, 2021 and thereafter, PAN and GSTIN shall be mandatory

The NIC Code can be selected once the aadhaar number is validated and major activity (manufacturing or service) is selected. In order to simplify the selection of appropriate NIC Code, three-stage drop down list is available to the users.

Udyam is not considered as a valid document to be used as a legal document for getting a Pan Card. For getting a pan card for a company you have to get company registration first from MCA Authority and then you can apply for Pan Card in Name of the Company.

It may not be made obligatory for the closing unit to inform about it to the State/UT concerned or the UAM portal.

As per the Income Tax Return (ITR) of the previous years filed under the Income Tax Act, 1961.
In case of a new enterprise, where no prior ITR is available, the investment will be based on self-declaration of the promoter of the enterprise and such relaxation shall end after the 31st March of the financial year in which it files its first ITR.
The purchase (invoice) value of a plant and machinery or equipment, whether purchased first hand or second hand, shall be taken into account excluding Goods and Services Tax (GST), on self-disclosure basis, if the enterprise is a new one without any ITR.

YES. Each technology startup by nature will have service being delivered in normal course or subscription basis or any other way. Being into service industry, the tech startup thereby will be eligible for MSME / Udyam as per the classification criteria.

MSME Registration