What is MSME?
Micro, Small, and Medium Enterprises are better known by the acronym MSME. MSMEs are the backbone of the Indian economy. Silently operating in different areas across the country, more than six crore MSMEs have a crucial role in building a more robust and self-reliant India. These small economic engines have a significant impact on the country’s GDP.
MSMEs contribute a staggering 30% to the country’s GDP, around 45% of the manufacturing output, and approximately 48% of the country’s exports. Additionally, more than 11 crore people are employed in the MSME sector. They’re rightly referred to as the ‘Backbone of the country.’
To strengthen the country’s backbone, the MSME ministry targets to increase its contribution towards GDP by up to 50% by 2025 as India moves ahead to become a $5 trillion economy.
The criterion for defining MSME enterprises was based on the MSMED Act 2006. It was different for manufacturing and services units. It is critical to acquire MSME Registration in Lucknow, which is what we aim for. It was also deficient in terms of financial limits (i.e., Investment amount). Since then, the economy has undergone significant changes. A new composite classification formula for manufacturing and service units has been notified. Now, there is no difference between the manufacturing and service sectors.
The Government of India proposed to redefine MSMEs by the Micro, Small, and Medium Enterprises Development (Amendment) Bill, 2018, to classify them as manufacturing or service-providing enterprises. Under this bill, there would be no need for frequent inspections to check the required investments needed to be made in the necessary plant and Machinery. Also, the operations of MSMEs would be allowed to continue in a transparent, non-discriminatory, and objective manner.
The new criterion is based on the Investment Amount and Turnover of the enterprise. While computing the turnover of the MSME enterprises, it is provisioned to exclude Exports turnover, i.e., turnover concerning exports will not be counted in the limits of turnover for any category of MSME units, whether micro, small or medium. It is essential to note that excluding the exports from the counting of turnover will encourage the MSMEs to export more and more without fearing losing the benefits of an MSME unit. This is expected to exponentially add to exports from the country, leading to more growth and economic activity and creating jobs.
Documents Required in MSME registration:
The Udyam registration process is entirely online and does not require the uploading of any documents. However, before applying for Udyam Registration, the proprietor or owner of the enterprise is required to have the following documents:
The Objective of the MSME Act
The Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 facilitates the promotion and development. It enhances the competitiveness of micro, small and medium enterprises and for matters connected in addition to that and incidental to that. Therefore keeping at par with MSME registration in Lucknow, we need to access the advantages.
Benefits of MSME (Udyam) Registration:
How to complete MSME (Udyam) Registration:
In this fast-moving phase of the economy and technology-driven processes, things are getting more organized and are paving ways to ease doing business. MSME(Udyam) Registration in Lucknow will be anan efficient process if all the steps are followed. The Indian Government too is taking various initiatives to encourage small-sized enterprises to exist and grow efficiently.
To register as an MSME (Udyam), all it takes is to file a web-based online form wherein the Applicant must have an Aadhaar card and a linked mobile number to get it certified. The process has been so simplified that the certificate is generated while making an application itself, and the fields of the e-form for MSME registration are listed out below:
By following all these steps, MSME( Udyam) registration in Lucknow will be a lot easier, and with our help at Business Buddy Solutions, you will receive world-class work.
Why Choose Business Buddy Solutions?
to render statutory obligations and rights to employees and employers, the show created has a few exciting things you may not be aware of. Before you explore them, understanding the goal, scope, and coverage will help you, especially if you are starting a small business of your own.
Shop Act Registration
Entrepreneurs must comply with the “Shop Act provisions,” particularly when they have a business or an establishment. The shop act has been incorporated for the better administration of the working conditions and employment in shops, commercial establishments, restaurants, eating joints, hotels, theatres, and many such places of public entertainment. The best services to receive Shop Act Registration in Lucknow is through our help at Business Buddy. If you’re an entrepreneur with any of these businesses, this Shop Act application checklist can help you with detailed instructions on registering.
What is the reach of the Shop Act registration?
The Shop Act is a state legislation, and each state has drafted rules and regulations applicable to the particular state. What is expected in the act is that it applies to every person in an establishment, whether with wages or without it and excludes the employer’s family members. It is under the jurisdiction of the state government to exempt, either entirely or for some duration, any establishment from any clause or complete act.
Documents required in the Shop Act Registration:
If Applicant is Individual I Proprietor:
(a) Individual’s photo J.D. (it can be Pan card, Driving license, Passport, Aadhaar Card, Election Card)
(b) residential address proof ( electricity bill, property tax paid receipt, purchase deed, rent agreement)
(c) Documents in support of the place of business ( electricity bill, property tax paid receipt, purchase deed, rent agreement)
(d) Actual photo of the establishment in which the signboard (name) of the establishment duly displayed, appears.
If the applicant is a company under Indian Company Act:
(a) Articles of association/Memorandum of Association with a list of directors
(b) Resolution of starting of the business
(c) Photo of one of the director or the applicant or the authorized representative duly authorized by resolutions to that effect
(d)Address proof of the person above, ( electricity bill, property tax paid receipt, purchase deed, rent agreement)
(e) Address proof of the place of business (purchase agreement, lease deed, rent agreement, electricity bill, property tax paid receipt)
(f) Actual photo of the establishment in which the signboard (name) of the establishment duly displayed, appears. Photo identity of the manager/Authorized person along with appointment letter who applying for the company.
(g) A copy of the license, registration which is mandatory under any other law from any authority before starting of that business.
Advantages of the Shop Act Registration:
To be able to enjoy the positive factors of Shop Act Registration in Lucknow we need to aware of its advantages and characteristics as well.
Shop Act is a mandatory requirement if the business premises are within municipal limits. It is applicable even if you are doing your business for your home or residential premises. Based on the number of employees, you will have to apply online for either Shop Act Intimation or Shop Act Registration. Shop Act Intimation applies to establishments employing up to 9 employees. It is compulsory to display the Shop Act Intimation/Registration certificate in a prominent place on the business premises.
2. Working Hours
As per the act’s regulations, it is required to display a notice in the place of business stating the working hours, rest intervals, and even weekly holidays. Companies working in the shift must display well in advance a shift schedule of the respective employee and the weekly holiday. There shall not be less than 12 hours of gap between two shifts.
3. Health & Safety
Keeping the establishment clean and hygienic also comes into the act and must be strictly followed. The premises should be not only free from dirt and garbage but also be odorless and cleaning time to time with prescribed methods like lime washing, color washing, disinfecting, and deodorizing. The premises should be well-lit with lights or natural sunlight and state-prescribed precautions from fire. The employer must take all the measures to protect the premises and workers from the danger of fire. Maintaining a duly equipped first aid box with first aid appliances and medicines is required.
4. Closure of Business:
In case the business is closed, the employer has to notify the shop act authority within 30 days of the closure of the company. This is applicable for both Shop Act Registration and Shop Act Intimation. The employer has to fill out the application form and physically submit the same to the respective shop act authority. On receipt of the application and after verification of the documents, the administration will remove the name of the establishment from the register of establishments and cancel the registration certificate.
5. Records & Registers:
Every employer is required to maintain the Muster roll cum wage register in the prescribed format, either electronically or manually. The record shall be either in English or the local language. The log should be authenticated either digitally or manually by the employer or any manager who is authorized to do so. The overtime entries should be recorded immediately after the completion of such overtime.
Suppose the number of employees in an establishment exceeds 9. In that case, such establishments must apply for Shop Act Registration, and all the registration provisions will apply to such establishments. In the case of Shop Act Registration, the establishments should apply for renewal of the certificate 30 days before its expiry.
For any and every business person, especially someone who has a small business or is starting a small business, a thorough check over the complete details of the act to avoid any legal issue after the commencement of the establishment is a must. The same is required as a good citizen and for the betterment of the establishment, business, and people working along with you. Therefore any individual or company who wants to be able to complete Shop Act Registration in Lucknow need to be aware of these facts and laws for the smooth knowledgeable functioning.
Why Choose Business Buddy Solutions?