Navigating the MSME business list can be a daunting task for businesses, especially when the objective is twofold: to find MSMEs offering specific products and services, and to verify the MSME status of existing vendors. This blog aims to simplify this process for you, providing a step-by-step guide on how to effectively search the MSME companies list and ensure compliance.
Why Businesses Search for MSMEs
Sourcing from MSMEs: The Benefits
Sourcing products and services from MSMEs (Micro, Small, and Medium Enterprises) offers a plethora of advantages. Not only do MSMEs often provide specialized services, but they also contribute to local economies. Responsible businesses understand the importance of supporting MSMEs, as it fosters community development and economic stability.
MSME Vendor Registration Status Check: The Need
Another reason to delve into the MSME category list/MSME business list is to verify the MSME status of vendors you’re already doing business with. This is crucial for accurate MSME Form 1 compliance filing, as the MSME status of vendors can change over time.
Run MSME Status Check on your list of Vendors.
Upload bulk PAN or GST of your vendors and identify the MSME status along with Udyam Number.
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How to Access the MSME Business List?
The MSME companies list is a comprehensive list of companies registered under MSME and can be accessed through the official MSME website. Here’s how:
- Visit MSME Website and go to https://udyamregistration.gov.in/searchregistration.aspx
- Navigate to the search registration page.
Data Points for MSME Vendor Search
To narrow down your search, you’ll need to specify three data points: State, District, and the description of the product or service. The portal also allows you to select ‘All’ for the district, broadening your search parameters.
Understanding NIC Codes
Upon submitting the required information, the portal provides a list of NIC codes relevant to the product or service you’re interested in. Each NIC code is accompanied by a MSME list of companies offering that specific product or service in the selected region.
Placing Inquiries
The portal makes it incredibly easy to connect with MSME vendors. You can place inquiries directly through the website based on the MSME category list, streamlining the procurement process.
Verifying MSME Status of Vendors
Verifying the MSME status of vendors is often a complex task. Vendors may not disclose their MSME status initially but may mention their MSME registration number on invoices later, creating obligations for the customer.
When you have a list of vendors you’re sourcing from, it is often a challenge to ascertain if a given vendor is registered as an MSME or not. The status of vendors sometimes changes during the course of engagement.
We have often seen instances where at the time of vendor onboarding, the vendor may not disclose their status as an MSME but at the time of raising an invoice, the vendor may mention their MSME registration number of the invoice thereby creating an obligation on the customer to extend benefits.
Many times, entities that are registered as MSMEs may grow out of the MSME criteria during the course of the engagement. It also happens that a vendor at the time of onboarding may not be an MSME but may choose to register as one during the course of the year.
Therefore it is essential to validate the list of vendors engaged with you for accurate Form 1 compliance filing.
- Submit a list of PANs or GSTINs to the SignalX application.
- Receive a list back, detailing the MSME registration status of each PAN or GSTIN as of the current date.
Conclusion
The MSME sector in India is ever-changing, making it essential for businesses to stay updated on their vendor lists and sourcing options. The dynamic nature of MSME statuses, whether it’s a vendor newly registering as an MSME or outgrowing their MSME criteria, underscores the need for ongoing vigilance.
The complexities involved in sourcing and compliance aren’t just procedural hurdles; they reflect the broader economic and regulatory environment that businesses operate in.
Frequently Asked Questions
What are MSME Types?
The classification of MSMEs in India has undergone significant changes, especially after the announcement of the Atmanirbhar Bharat package on 13th May 2020.
The Ministry of Micro, Small, and Medium Enterprises revised the MSME classification or MSME types to include turnover as a criterion, in addition to investment in plant and machinery. The new classification came into effect on 1st July 2020.
Here are the revised types of MSMEs based on investment and turnover:
Micro Enterprise:
Investment: Not more than Rs. 1 Crore
Turnover: Not more than Rs. 5 Crore
Small Enterprise:
Investment: Not more than Rs. 10 Crore
Turnover: Not more than Rs. 50 Crore
Medium Enterprise:
Investment: Not more than Rs. 50 Crore
Turnover: Not more than Rs. 250 Crore
How many businesses are in MSME?
As of the latest available data, the MSME (Micro, Small, and Medium Enterprises) sector in India comprises nearly 63 million enterprises. MSME business plays a significant role in the Indian economy, contributing 30% to India’s Gross Domestic Product (GDP), 45% to manufacturing, and 40% to exports. Additionally, the MSME sector provides employment to over 113 million people.
Do startups come under MSME?
Startups are not classified as MSMEs by default. However, a startup can register as an MSME if it meets the criteria for micro, small, or medium enterprises based on its turnover and investment. For more information on the classification of enterprises as MSMEs, refer to the first answer of the FAQs.
How do I know if a company is MSME?
In order to know if a company is a registered MSME in India you can follow two processes.
Process 1:
You can visit the Udyam Registration website at https://udyamregistration.gov.in/searchregistration.aspx
MSME vendors search can be done with the following three data points. State, District and the description of the product. You had the option to select ‘All’ against the district option.
Once you submit this information, the portal provides data on a list of NIC codes that are relevant to the product you are looking to source. Against each NIC code, you are also given a list of MSMEs that are offering that product or service in the specified region.
Process 2:
Identification and verification of whether a company is a registered MSME or not can be done through SignalX’s MSME search solution.
- Provide a list of PANs or GSTINs to SignalX application.
- SignalX returns the list of PANs with their MSME registration status as registered, not registered as on present date.
