The MSME full form denotes Micro, Small, and Medium Enterprises, which are scaling new heights in every financial year. About 6.3 crore such businesses are operating in this country, employing about 110 million Indians, a recent report has mentioned. It has also mentioned that the number of registered organizations has grown 18.5% to reach the 25 lakh mark in 2020 from 21 lakh in 2019.
Since it is not a small number, keeping track of these organizations can be a tough job. In this regard, the government has started an effort to create a databank and consolidate all information about these companies into a single platform.
What is an MSME database?
MSME databank, this database’s official name, is a comprehensive database offering information about MSMEs operating in India. This platform stores information associated with these companies, such as their area of operation, goods and services offered by them, details of import and export, any merger and acquisition, etc.
Launched in 2016, this platform has allowed the Indian Government to monitor these MSMEs and facilitate policies for their development. For instance, the Government has allocated Rs.15,700 crore in its Union Budget 2021 to help this MSME sector grow further in the upcoming years.
Moreover, MSME units can now register on this platform through Udyog Aadhaar Memorandum. This memorandum is a single-page registration form that helps entrepreneurs to self-certify the existence of their venture.
Completing the UAM registration will help organizations obtain a UAN (Udyog Aadhaar Number), which is essentially the Aadhaar number for businesses. A valid UAN can help companies to skip various procedural hassles associated with MSME registration.
Furthermore, business owners should also know the registration process and eligibility criteria of MSME databank and work accordingly to index their company on this platform and use it to avail of the benefits of an MSME loan.
Registration process of MSME databank
Here is a step-by-step guide on the registration procedure of the MSME databank –
Step 1: Visit the official website of the MSME databank and click on the ‘Register’ option and then on the ‘MSME’ option from the drop-down menu.
Step 2: Initiate the process by entering the UAN and registered mobile number.
Step 3: Fill up basic details such as PAN, Aadhaar, company name, registration and licensing details, etc.
Step 4: Now provide the company’s address, its turnover information, employment history, etc.
Step 5: In the ‘Other Details’ section, enter bank account information
Step 6: In the ‘Additional Requirements’ portion, enter information such as the implementation of solar energy, quality certifications, export details, etc.
Following successful registration, applicants will receive an email in their registered account confirming the status of their application. Once it is accepted, business owners can then log in with their username and password into this portal.
According to the MSME Development Rules of 2009, companies operating in this sector must register themselves with the Government. This databank has managed to make that registration process smooth and hassle-free. Moreover, completing this registration also comes with various benefits.
Benefits of MSME database registration
Here are some prominent advantages of MSME registration –
- One platform to access all details regarding MSMEs
- Allow government and other organizations to procure products and services
- Update the details easily
- Apply for any government scheme without hassle
MSME database registration details can act as business proof while applying for business loans as well. Along with that, borrowers can also create a checklist for business loan application to avoid missing out on any details.
Also, leading financial institutions like Bajaj Finserv offer business credit at lenient eligibility terms, and the availability of pre-approved offers only streamline the whole process. These offers are available on various products, including home loan, loan against property, etc. Individuals can check their pre-approved offer by submitting their contact details. The MSME full form may have remained the same, but the Government has altered its definition recently.
Therefore, entrepreneurs can check pertinent information before going ahead with their registration process to avoid any confusion. At the same time, they should also know the reasons to apply for a business loan and how they can utilise it.
