MSME Registration for Partnership Firm – An Overview

MSME Registration for Partnership Firm
| Updated: Aug 17, 2021 | Category: MSME

The Partnership Firm is governed and regulated by the norms of the Indian Contract Act. Partnership Firm comes under the influence of Partnership Act, 1932. The Partnership is a framework that mainly benefits businesses with reasonable management size & a smaller footstep. Hence, these firms often have difficult times propelling business activities due to the lack of funds & other resources. The Government of India takes some vital steps to restore their present condition by introducing various schemes. MSME Registration is one such government plan that intends to help these entities through an extensive range of schemes and faultless funding. Scroll down to check the process to get MSME Registration for Partnership Firm.

A Partnership is an official arrangement by two or more parties to manage & run a business and share their profits. There are different types of Partnership arrangements. Generally, in a Partnership business, all partners share profits and liabilities equally, whereas, for others, partners may have limited liability. There also is the so-called “Silent Partner”, in which one party is not involved in the regular operations of the business.

What is an MSME?

MSME or Micro, Small, and Medium Enterprise is a government-backed institution that strengthens rules, regulations, and norms for industries operating in the MSME sector. MSME’s distinctive services comprise the facilitation of collateral-free loans, technology, and quality up-gradation to assist small businesses, entrepreneurial development & management of SMEs through creating awareness and incubator concerning IPRs.

The Ministry of MSME seeks to allow small and medium-sized businesses through sequences of growth-oriented schemes. MSME Registration is generally known as Udyog Aadhaar Registration. MSME categorisation rotates around Composite Criteria, as illustrated in the table mentioned below:

Composite Criteria: Yearly Turnover and Investment in Plant & Machinery

Categorisation

Micro

Small

Medium

Manufacturing Enterprises and providing services

Investment in Machinery or Equipment and Plant:

Not more than Rs. 1 crore and yearly turnover not higher than Rs. 5 crore.

Investment in Machinery or Equipment and Plant:

Not more than Rs. 10 crore and yearly turnover not higher than Rs. 50 crore.

Investment in Machinery or Equipment and Plant:

Not more than Rs. 50 crore and yearly turnover not higher than Rs. 250 crore.

UAM or Udyog Aadhar Memorandum – Meaning

UAM stands for Udyog Aadhar Memorandum, which refers to a registration form wherein the small companies or entities confirm their presence and facilitates requested details. After submitting the proposed application, the portal creates an acknowledgement slip, which will be routed to the email id of the applicant. The proposed slip requires a unique Udyog Aadhaar Number (UAN).

How MSME Registration Make Sure the Growth for Small Businesses in India?

MSME Registration is not a compulsory certification; however, it is definitely vital from a growth perspective. Small businesses are not that financially steady, unlike bigger corporations. They barely have access to sources that provide easy funding for propelling business activities. Also, such firms are not good at protecting government-backed orders. This is where the Registration of MSME comes in so handy. Once you registered under MSME Certification, you become entitled to access the following advantages:

  1. Access to collateral-free loans at a lower interest rate;
  2. Access to financial backup for taking part in overseas expos;
  3. Exclusive access to government-backed subsidies;
  4. Access to government-oriented tenders;
  5. Open access to micro business loans and other associated schemes.

Hence, companies having MSME Registration Certificate can:

  1. Increase their footprint beyond the present market;
  2. Enhancing current facilities by obtaining better equipment and machinery;
  3. Expect visible growth in a quick timeframe owing to uninterrupted access to government orders;
  4. Alleviate the hassle of recognising a consistent source of funding.

Information to be provided for MSME Registration for Partnership Firm

Following are some vital information that should be provided for MSME Registration for Partnership Firm:

  • Type of Organisation;
  • District Industry Centre;
  • Number of individuals employed;
  • Commencement date;
  • Aadhaar card of the partners;
  • PAN number;
  • Plant location;
  • An investment made in the facility;
  • Bank details such as account number & IFSC Code;
  • Applicant’s contact details;
  • Firm Name;
  • NIC Code (National Industry Classification Code) for activities;
  • A major activity of the unit.

What is the Procedure to Get MSME Registration for Partnership Firm?

Below is the procedure to get MSME Registration for Partnership Firm:

  1. Small business owners are required to fill a single page e-form either online or offline. For web-based registration, submit to the official website of MSME;
  2. If someone aims to register for more than one industry, then they are required to choose individual registration;
  3. In this form, the business owner has to self-certify its presence, business activity, bank-related details, employment & ownership and other vital information;
  4. MSME Registration Certification process seeks no registration fees;
  5. After providing the required details, the portal will create and share the Registration Number with the candidate on the registered email ID.

Important Points Concerning MSME Registration for Partnership Firm

Following are some important points regarding MSME Registration for Partnership Firm:

  1. A permanent certification no will be allowed to the application after a victorious registration;
  2. After completing the process of MSME certification, the authority will allow the certificate digitally;
  3. This certification shall involve a dynamic QR Code that allows the user to obtain quick access to the portal;
  4. There is no requirement for periodic MSME Registration;

Conclusion

Registration of MSME is a government proposal that intends to incentivise small entities. Besides ensuring the availability of collateral-free loans, MSME Registration also furnishes businesses with a chance to access government-backed tenders. MSME Registration for Partnership Firm provides enhanced stability for the firm owing availability of the advantages is offered. Overall, MSME Registration seems to be a winning proposition for SMEs[1] seeking substantial backup both in terms of money & business opportunities.

Read our article:Challenges Faced by the MSME in India – An Overview

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A legal writing enthusiast, a wanderer, and a zealous reader. After gaining a lot of knowledge about the diverse legal topics and developing research skills, Karan joined the league of legal content writers to deliver quality-rich blogs.

 

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