The government of India provides an MSME registration to the Micro, Small, and Medium (MSME) industries. It helps MSMEs to obtain multiple benefits provided by the government for their establishment and growth. MSME industries are the backbone of the economy. This blog discusses in-deep about the MSME Certificate Validity.
Micro, small, and medium enterprises in India can register with the government to avail of multiple benefits and government schemes. When the registration is complete, you get a certificate known as the MSME Certificate or Udyam Certificate.
MSME registration is a mandatory process for any business to legally START functioning in India. The registration process is free of cost, paperless, based on self-declaration, and is differentiated into two main categories, namely manufacturing enterprises and service enterprises.
Meaning
The Micro, Small, and Medium Enterprises (MSMEs) support industries as ancillary units, thereby contributing enormously to the overall industrial development of the country.
MSMEs contribute significantly to India’s total GDP, and the government’s objective is to raise this contribution to 50% in the coming years. That is why MSMEs are considered to be the backbone of the economy. They are also pivotal to the nation’s growth as they employ lakhs of unskilled and semi-skilled individuals.
Examples of MSMEs
- Leather products.
- Moulding of products like combs, umbrella frames, plastic toys, etc.
- Natural fragrance and flavors.
- Placement and management consultancy services.
- Training and educational institute.
- Energy efficient pumps.
- Xeroxing.
- Beauty parlour and crèches.
Scope of MSMEs
MSMEs contribute significantly to India’s total GDP, and the government’s objective is to raise this contribution to 50% in the coming years. That is why MSMEs are considered to be the backbone of the economy. They are also pivotal to the nation’s growth as they employ lakhs of unskilled and semi-skilled individuals.
The sector is considered the backbone of the Indian economy, contributing to 45% of the industrial output and 40% of India’s exports, employing 60 million people, creating 1.3 million jobs every year, and producing more than 9,000 quality products for Indian and international markets.
Help and coordinate between industry and other agencies & act as a facilitator. Creation of Basic Infrastructure for Industrial Development. Creation of job opportunities through Self Employment Schemes. Train and develop entrepreneurship skills among the educated unemployed youth.
Promote growth and development of micro, small, and medium enterprises, including khadi, village, and coir industries to create new enterprises and more employment opportunities.
The Micro, Small, and Medium Enterprises (MSME) sector has emerged as a vibrant and dynamic sector of the Indian economy. MSMEs play a crucial role in providing large employment opportunities at a comparatively lower cost than large industries.
What are MSMEs?
The Ministry of Micro, Small, and Medium Enterprises is the ministry of the Government of India. It is the apex executive body for the formulation and administration of rules, regulations, and laws relating to micro, small, and medium enterprises in India. The Minister of Micro, Small and Medium Enterprises is Narayan Rane.
MSME Registration
The MSME Ministry is functioning strongly to support and promote all the smaller enterprises to start up with the production and manufacturing sectors, and also in the category of process and preservation of goods to motivate the entrepreneurs and to make them realize that they don’t have to spend a heavy amount to start their business.
Also, the Government keeps on coming up with different schemes and subsidies once the entrepreneur has registered their business under MSME so that they can avail of such benefits and continue to keep running their business without any problem.
MSME has a major and important role in generating employment at relatively low capital cost and at the same time it has helped to industrialize the backward and rural areas. Therefore, registering under this vibrant sector of MSME has reduced the regional imbalance and thus, in so doing it has assured equitable distribution of wealth and national income.
Renewal Process
For the renewal process, the MSMEs need to start the renewal process within the validity period. Because it ensures uninterrupted benefits and recognition. Usually, the renewal process includes updating the necessary details and verifying the information. Moreover, the renewal process may include the required fees.
Notably, MSMEs have to renew their MSME Certificates on an annual basis that provide their last year’s ITR details and GSTR filing status. The process also ensures that the Government is also aware of its MSME classification and current financial situation.
Easy Steps for MSME Certificate Renewal:
- Visit the official site of Udyam Registration portal
- Log in with your existing credentials
- Navigate to the renewal section
- Follow the necessary steps (including updating information and verifying details)
- Make the required payment (if applicable)
- The official executive will contact you
- After successful processing, you will receive an updated MSME certificate on the registered email address
End Notes!
Therefore, by complying with the essentials of MSME registration for businesses these micro and small enterprises receive great supportive measures from the Government, and it ensures and balances the foundation of their business. Besides contributing to the micro, medium, and small enterprises it sometimes promotes the large industries as a supplementary unit.
Therefore, these enterprises need to learn about the essentials of MSME registration and strategize their business activity to avail the various benefits under MSME.
