The government provides several incentives, schemes, and subsidies to encourage entrepreneurship to MSMEs. In addition, the banks and other non-banking financial institutions also provide low-interest or easy and quick loans to certain firms that have MSME Registration. . Partnership firms are one of the most popular business entities in India and most of the Partnership Firms qualify the eligibility criteria for MSME Registration. Thus, In this article, we will understand the complete MSME Registration process for partnership firm.
What is MSME?
The former MSME categorization system was based on factors such as plant and machinery or equipment investment. The government, however, amended the MSME categorization under the Atma Nirbhar Bharat Abhiyan (ABA) by incorporating composite criteria for both investment and yearly turnover. Thus, the revised and present classification of MSME Registration for every business entity is as follows.
|Investment & Annual Turnover||< Rs.1 crore & < Rs.5 crore||< Rs.10 crore & < Rs.50 crore||< Rs.50 crore & < Rs.250 crore|
Important Note – MSME Registration is also known as Udyam Registration.
What is a Partnership Firm?
The partnership firm is one of the easiest methods to organize a legal organization in India, allowing a group of two or more people to lawfully conduct business and share profits.
It perfectly meets the requirements of companies or start-ups that enjoy working in groups and are team players. This kind of business entity is also ideal for both the structured and unorganized sectors of the economy’s MSME industries.
In other words, Individuals who have formed a partnership firm with one another to carry on a company are referred to as “Partners,” the firm is referred to as “Partnership Firm,” and the title under which they are handling business is referred to as “Firm Name.”
Know about the Benefits of MSME Registration for Partnership Firm
There are plenty of benefits of MSME Registration for Partnership Firm. The most important to note are mentioned below.
- Partnership firms and other business organizations can earn a 1% overdraft loan advantage after acquiring an MSME registration certificate, while MSMEs with GST registration can get a 2% interest subsidies, according to the Union budget 2019.
- MSMEs have been exempted from paying all costs associated with getting ISO certification. The ISO Certifications encourage MSMEs to improve their performance in many industries. Learn more about ISO Certifications at – The three Primary ISO Certification used in Companies Enterprises that have received a certificate of registration from MSME are eligible for a subsidy of more than 50%. Both trademark registration and patent registration are under the reimbursement of government fees after getting MSME Registration.
- Buyers of services or goods from MSMEs (Small Scale Industries) have a tendency of delaying payment. Thus, The MSME ministry aids such businesses by granting them the power to charge interest on delayed payment from buyers. This is done through grievance procedures.
- MSME-registered businesses are also eligible for a government-suggested subsidy for industrial promotion. Furthermore, MSME-registered partnership businesses and other business organizations can earn a refund on their electricity bills.
Understand the MSME Registration process for Partnership Firm
The stepwise MSME Registration process for partnership firms is as follows.
- Partnership Firm owners must either fill out an offline or digital MSME Registration e-form. Then, Go to the MSME’s official website for digital registration.
- If someone wants to register for more than one industry, they must register for each one separately.
- The business owner must self-certify its existence, commercial activities, bank-related data, management & personnel data, and other critical information on this form.
- Following the completion of the relevant information, the portal will produce and send the registration number to the applicant’s registered email address.
- The authority will then issue the certificate online when the certification procedure is completed. This certification will include a dynamic QR code that will allow the user to access the portal immediately.
However, as we can see it is a complicated process to get MSME Registration or Udyam Registration as it involves a lot of steps that require proper expertise. Therefore, it is best to get hassle-free MSME Registration through a professional and well-reputed team like e-startup India.
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