The MSME sector represents the backbone of the Indian economy since it makes major contributions to its growth. The development of MSME and the nation’s economy have been linked and have an inverse relationship. It also implies that any increase in MSME growth would reflect in the company’s economic growth.
It is not necessary to secure governmental registration for a sole proprietorship firm since it does not qualify as a legal entity. However, there are quite a few documents that must be completed before establishing a sole proprietorship business.
The flexibility and liberty of the sole proprietorship allow it to shine out amongst the numerous different business models easily available. Still, getting registered as a Micro, Small, and Medium Enterprise( MSME) is essential for being suitable to completely realise the potential of a sole proprietorship. This article highlights the numerous advantages associated with this formal classification and explains the question “Can sole proprietor register as MSME?” For sole proprietors, MSME status may widen opportunities for profitability and expansion through an array of approaches, including financial aid and credit support for technological improvement and exposure to the market.
Documents Required For MSME Registration
The following documents are essential to obtain MSME for Sole Proprietorship Registration
- Aadhar card
- PAN card
- Address proof for business
- Bank account details
- Mobile number
- Email ID
Procedure To Obtain MSME Registration For Sole Proprietor
The procedure for applying for a sole proprietorship organisation to register under MSME is as follows.
- It has become possible to register online at https://udyamregistration.gov.in, which was established by the Indian government.
- The website that was stated above provides a form for registration that the applicant can fill out with all of the required data.
- The person applying is going to be given a permanent identification number after the registration procedure is finished.
- The specific number of registration enables the applicant to monitor every aspect of their registration.
- An electronic certificate will be supplied online following successful firm registration. A distinctive QR code on such a certificate comprises all of the information regarding the company.
- MSME Registration Fee: However, the Udyam Registration has replaced the Udyog Aadhaar Registration as of July 2020. The Udyam Registration Portal now requires new MSMEs to register and get an Udyam Certificate. The udyog to udyam migration is necessary. The government offers Udyam registration, without charge.
Benefits of MSME Registration for Sole Proprietorship
As a result of its MSME registration, a sole proprietorship business can take advantage of the benefits listed below:
- Businesses that have enrolled with the MSME scheme can easily obtain loans with an affordable rate of interest.
- For fifteen years, firms have been allowed to pay the minimum alternate tax.
- These enterprises are permitted to register for government project tenders.
- The cost of incorporating a company is comparatively inexpensive and has decreased over time.
- Businesses that are MSME registered can obtain government licences easily.
- Take advantage of exclusive discounts and concessions on patents and business setups.
- Excise duties and additional taxes are exempted.
- Firms that are registered and have an MSME certificate are going to receive benefits and have the opportunity to take advantage of discounts from multiple government departments, especially electricity.
- A special focus is devoted to international trade fairs.
On July 1st, 2020, a new system called Udyam Registration replaced the place of MSME Registration/Udyog Aadhar. Although you already had MSME Registration or Udyog Aadhar, both were no longer functional after July 1, 2020. Firms that had a Udyog Aadhar registration were not eligible for the perks anymore unless they migrated to or enrolled for Udyam Registration.
Can sole proprietors register as MSMEs? Yes, of course! Moreover, registering under MSME provides an array of perks, including lower interest rates on bank loans, tax breaks, priority in the bidding process, as well as access to several government initiatives and subsidies. A sole proprietorship business should complete the MSME registration as soon as possible if it wants to gain greater rewards and financial success in the future. At Taxxinn, we ensure that you get an MSME certificate through a hassle-free process.