FOR EXISTING POLICY
FOR NEW POLICY
What is MSME Databank - Registration and Eligibility Criteria
Editorial Team - Nov 21 - 9 min. read
154
The MSME Databank is a comprehensive database of all India's operating micro, small and medium enterprises (MSMEs). It is a valuable resource for MSMEs, government agencies and other stakeholders.
Micro, Small and Medium Enterprises (MSMEs) play a pivotal role in the vibrant landscape of India's economic ecosystem. The Ministry of Micro, Small and Medium Enterprises introduced the MSME Databank to bolster their growth and streamline governmental support.
This digital repository is a comprehensive platform that bridges the gap between MSMEs and various government schemes and incentives.
In this blog, we will discuss the intricacies of the MSME Databank, shedding light on the registration process and the essential eligibility criteria businesses must meet.
What is MSME Databank?
MSME Databank is a comprehensive database of all India's operating micro, small and medium enterprises (MSMEs). It was launched on August 11, 2016, by the Ministry of Micro, Small and Medium Enterprises (MSME).
The MSME Databank is a single access point for information on MSMEs in India. It contains data on the following aspects of MSMEs:
- Basic information, such as name, address, contact details and type of enterprise
- Economic information, such as turnover, employment and investment
- Sectoral information, such as the industry in which the MSME operates
- Geographical information, such as the state and district in which the MSME is located
- The MSME Databank is valuable for MSMEs, government agencies and other stakeholders.
- MSMEs can use it to find new markets, suppliers, and partners.
- Government agencies can use the MSME Databank to design and implement policies and programs that support the growth of MSMEs.
- Other stakeholders, such as investors and researchers, can use the MSME Databank to learn more about the MSME sector in India.
How to Get Registered in the MSME Databank?
MSME databank registration is simple, and you need to follow these steps:
- Go to the MSME Databank website.
- Click on the "Register" button.
- Select the appropriate registration type:
- MSME
- Association
- MSME Development Organisation
- Fill in the required details.
- Click on the "Submit" button.
Once you have submitted your registration, you will receive a confirmation email. You must click the link in the email to activate your account.
Required details for MSME registration:
- Udyog Aadhaar Number
- PAN
- Name of the enterprise
- Address of the enterprise
- Contact details of the enterprise
- Type of enterprise
- The sector in which the enterprise operates
- Turnover of the enterprise
- Employment in the enterprise
- Investment in the enterprise
Once your registration is approved, you can log in to the MSME Databank and view your MSME Databank registration certificate on your profile. You can also update your profile and add additional information about your enterprise.
Eligibility Requirements to Get Registered on the MSME Databank
The following are the eligibility requirements to get registered on the MSME Databank:
- The enterprise must be a micro, small, or medium enterprise (MSME).
- The enterprise must be registered with the Udyog Aadhaar Memorandum (UAM).
- The enterprise must have a PAN card.
MSME Meaning and Classification
MSME stands for Micro, Small, and Medium Enterprises. It is a classification used by the Government of India, as per the MSMED Act of 2006, to categorise businesses based on their size and level of operations.
The main purpose of classifying businesses into MSMEs is to provide them with targeted support and benefits, such as access to finance, government incentives and preferential treatment in procurement processes.
How are MSMEs categorised?
- Micro: Investment in plant and machinery does not exceed ₹1 crore.
- Small: Investment in plant and machinery does not exceed ₹10 crores.
- Medium: Investment in plant and machinery does not exceed ₹50 crores.
What is a Udyog Aadhaar Memorandum (UAM)?
A UAM document provides a unique identification number to MSMEs in India. It is issued by the Ministry of Micro, Small and Medium Enterprises (MSME).
How to register for a UAM?
To register for a UAM, visit the Udyog Aadhaar website and fill in the required details. The registration process is free and easy.
Once you have registered for a UAM, you can use it to register on the MSME Databank.
What Are the Benefits of Registering on the MSME Databank?
There are many MSME databank benefits, including:
- Access to government schemes and programs for MSMEs
The government uses the MSME Databank to identify and target MSMEs for various schemes and programs. By registering on the MSME Databank, you can increase your chances of availing these benefits.
- Increased visibility for your business
The MSME Databank is a publicly accessible database of MSMEs in India. By registering on the MSME Databank, you can increase the visibility of your business to potential customers, suppliers, and partners.
- Opportunity to connect with other MSMEs
The MSME Databank is a great platform for MSMEs to connect. You can use the MSME Databank to find suppliers, partners, and mentors.
- Access to information and resources
The MSME Databank provides MSMEs access to various information and resources, such as business news, government policies, and market trends. This information can help MSMEs make informed decisions about their business.
- Improved access to credit
Financial institutions may use the MSME Databank to assess the creditworthiness of MSMEs. This can make it easier for MSMEs to get loans and other forms of financing.
- Increased market opportunities
Domestic and international buyers may use the MSME Databank to identify and source products and services from MSMEs. This can help MSMEs to expand their markets and reach more customers.
- Enhanced competitiveness
The MSME Databank provides MSMEs with access to information and resources that can help them improve their productivity and efficiency. This can help MSMEs to become more competitive in the market.
The Role of SME Insurance for MSMEs in India
Now that you have considered registering your small enterprise on the MSME databank, you must also consider having robust SME insurance for your employees.
SME insurance is vital in protecting MSMEs in India from various risks. MSMEs are often more vulnerable to risks than large businesses, as they have fewer resources to cope with unexpected events. Such an insurance plan can help MSMEs to mitigate these risks and ensure their business continuity.
Here are some of the key benefits of SME insurance in India:
- Financial protection
SME insurance can provide financial protection to MSMEs in the event of a loss or damage, such as fire, theft, or natural disaster. This can help MSMEs to recover from setbacks and continue operating.
- Improved access to credit
Banks and other financial institutions are more likely to lend to MSMEs that have insurance coverage. This is because insurance reduces the risk of the loan defaulting.
- Increased customer and investor confidence
SME insurance can increase customer and investor confidence in MSMEs. This is because it demonstrates that the business is financially stable and well-managed.
SME insurance is an important investment for any MSME. It can help protect the business from various risks and ensure its financial stability and growth.
Conclusion
The MSME Databank is pivotal in fortifying India's Micro, Small, and Medium Enterprises. Its launch in 2016 marked a transformative milestone, creating a centralised hub for crucial business information.
It has empowered countless enterprises by bridging the gap between MSMEs and government support. This digital repository facilitates access to financial aid and opens doors to networking and procurement opportunities.
As we navigate the tough economic landscape of small businesses in India, leveraging the MSME Databank remains imperative for businesses seeking sustainable growth and prosperity.
