What is MSME Databank? Know the Registration & Verification

If you are an MSME owner, being a part of the MSME databank is mandatory for you. You just need to follow a handful of online steps to do that. Once you become a part of the databank, you come across a plethora of business opportunities to facilitate your enterprise’s growth. This blog post will take you through intricate details about the databank and its registration and verification processes. Read on to learn more.

What is MSME Databank?

MSME databank is an extensive database of all Indian MSMEs operational at present. To become a part of the databank, you must fill out the Udyog Aadhaar Memorandum (UAM), a page-long form that MSME owners use to self-certify their enterprise’s existence. You will need to furnish intricate details about your venture, banking details, KYC details, and other information while filling up the UAM form. The good news is that the process is free.

After completing the UAM, you will get a confirmation mail with your 12-digit Udyog Aadhaar Number (UAN). You will need this number at the time of MSME databank registration. It is like an Aadhaar number for your MSME. It results in a lot of energy and time saving while registering your entity as an MSME to become a part of the databank.

MSME Databank Features

Here are a few features of the MSME databank:

• 24/7 accessibility.
• Helps the government buy MSME procurements. 
• Businesses that are part of the MSME bank are also eligible to supply goods or services to the government.
• The process of databank enrolment is compatible with Udyog Aadhaar and Aadhaar.
• A real-time dashboard enables constant updating and monitoring.
• Allows product mapping with HS/NPC codes for better clarification.

If your MSME is a part of the databank, you can gain special access to government departments like PSUs (Public Sector Units) that regularly approach MSME units to fulfil their various needs.

Who is Eligible for MSME Databank Registration?

You can easily complete the databank registration process if you are an MSME owner with a PAN card in your venture’s name and the UAN for your business entity. Alternatively, if you are a business proprietor without a UAN number, you can share your PAN Number to complete the registration process. However, this option is only available if you own a non-corporate entity. 

Take a look at the following eligibility criteria you have to follow for MSME databank registration:

• Udyog Aadhaar Number

   - you will also need to share your RMN (Registered Mobile Number) if you are located in the North East region

• PAN Number:

   If you are a corporate entity like a company or Limited Liability Partnership, it will be mandatory for you to mention your PAN number for MSME databank verification. On the other hand, if you own a non-corporate entity like a joint or sole proprietorship, your PAN card number is sufficient for successful registration.

MSME Databank Registration Procedure

Here is the stepwise procedure to get registration in the MSME databank:

Step 1:

• Visit the MSME databank registration page 
• Fill in a few necessary details, like your PAN number, UAN, and mobile number
• Click on the ‘Validate’ button to validate your identity

Step 2:

• After validating your identity, some information from your Udyog Aadhaar data will automatically appear on the screen as the system fetches it. These include your enterprise name, category unit size, organisation type, operating sector, state and district name and pin code of the business ownership, commencement date, communication address, social category, email ID, and UAN-linked mobile number.
• In the second half, you must manually fill out some information. These include the authorised person's name, nature of the business operation (casual, seasonal, or perennial), official website address, cluster name, and special entrepreneur category (if applicable).
• In the following two sections, you must provide details regarding any other registrations under the 1948 Factory Act or the Shop and Establishment Act (if applicable). 
• In the case of an ancillary unit, tick the correct box and provide the related details.

Step 3: 

• This step involves filling out Section B. The system auto-populates some fields after fetching the details from your Udyog Aadhaar data, while you must manually enter some other information. These include your business address, number of employees, annual production capacity, financial resources invested in machinery and plant, power load in KW/h, product description that your business makes, raw materials used for the company, details regarding major clients, and last year's turnover.
• You must also enter product-related specifications, such as the product's name, HSN code, production measurement unit, etc.
• Service providers must fill out Section C. Similar to Section B, enter basic details like your head office location, turnover, and number of employees. However, instead of product details, you must share information regarding the service you offer through your business. 

Step 4:

In the next section, you will need to provide your banking details, including the banker’s name, checking account number, bank IFSC code, etc.

Step 5:

The next section requires information regarding any government assistance you have already taken, such as the helping organisation, scheme name, amount availed, date of taking the assistance, etc.

Step 6: 

In the last section, you have to share information about any associations you have and their enrolment dates. Follow it with details regarding any accolades and handholding you have received for your business.

After submitting all these details, you will get an email with your user ID and password. Use these details to log into www.msmedatabank.in and change any details if needed.

At Hero FinCorp, you can quickly obtain an MSME Business loan of Rs 3 to 40 Lakh at a reasonable Business Loan interest rate to set up or expand your MSME. These loans are collateral-free and have no end-use restrictions, allowing borrowers to use the loan amount for any purpose. Furthermore, MSME databank registration significantly improves your new Business Loan eligibility and streamlines the loan procedure to provide the required funding at better rates and favourable terms and conditions.

Conclusion:

The MSME Databank serves as a comprehensive platform for the registration and verification process of MSMEs. It provides a centralised database of information, allowing for easy access and verification of registered entities. By registering on the databank, MSMEs can avail numerous benefits and opportunities provided by the government and financial institutions. It not only enhances transparency but also promotes growth and development within the MSME sector. Embracing this platform can empower businesses and foster a conducive environment for their success and sustainability.

FAQ 

• How do I know if my MSME is registered?

You can check the registration status of your MSME by visiting the Udyog Aadhaar portal or contacting your local MSME development institute.

• What information is on a MSME certificate?

A MSME certificate includes details such as the enterprise's name, Udyog Aadhaar Number, type of organisation, address, date of commencement, and investment in plant and machinery or equipment.

• Is it compulsory to register under MSME?

No, registration under the MSME Act is not compulsory. However, it is better for businesses to register in order to avail benefits such as government schemes, and subsidies.