Since the implementation of MSME Udyam Registration, retailers and wholesalers have been struggling with the issue of being unable to register as an MSME because the MSME Act forbids it. Moreover, MSME Registration was replaced by Udyog Aadhar Registration, and even then, the Ministry of MSME forbade the registration of Retailers & Wholesalers under Udyog Aadhaar. Retailers and wholesalers’ activities were included in the NIC code list under the general categories of 45, 46, and 47; however, their registration was still prohibited, as stated in the Ministry’s circular of June 27, 2017.
Retailers and wholesalers were not permitted to register as Udyami under the new and upgraded Udyam Registration and take use of benefits provided by the Ministry of MSME under the MSME Act even though Udyam Registration was put into effect on July 1, 2020.
The Ministry of MSME has long received repeated requests from Indian retailers and wholesalers asking that they be permitted to register as MSME businesses in order to benefit from the program’s benefits.
Ultimately, the ministry has issued the circular below under its new leadership in response to the growing demand from retailers and wholesalers.
Through Circular No. 5/2(2)/2021-E/P & G/Policy (E-19025) dated July 2, 2021, the Ministry of Micro, Small & Medium Enterprises has made it possible for retail and wholesale trading activities falling under the general categories of 45, 46, and 47 of the NIC Codes to obtain Udyam Registration and become Udyami Enterprises.
Wholesalers and retailers are businesses involved in the distribution of goods. Wholesalers purchase products in large quantities from manufacturers and sell them in smaller quantities to retailers or directly to consumers. Retailers, on the other hand, sell products directly to consumers.
Can wholesale and retailers register under the ministry of MSME.
Yes, wholesalers and retailers can register on the Udyam Registration portal. The Udyam Registration process has been extended to include these businesses, allowing them to access the benefits and schemes offered under the Udyam scheme. The registration process for wholesalers and retailers is similar to that of other MSMEs and requires them to provide basic details about their businesses, including their Aadhaar and PAN numbers. The process is entirely online and can be completed easily and conveniently.
It is crucial to remember that even while Retailers and Wholesalers are now able to register, they will not automatically receive the incentives offered by the Ministry of MSME under the MSMEs Plan. The advantages are now only available to Priority Sector Lending.
The businesses can now move to Udyam Registration or submit an application for a new Udyam Registration if they were successful in obtaining an Udyog Aadhar Memorandum under the aforementioned NIC numbers.
In order to strengthen both the sectors and the economy, the Ministry wants to close the gap between manufacturing activities and retail and wholesale activities and offer consistent benefits over time.
Conclusion
In conclusion, the government of India’s decision to extend the Udyam Registration process to wholesalers and retailers is a significant step towards promoting and supporting the growth of MSMEs in the country. With the inclusion of these businesses, the Udyam Registration process has become more inclusive, providing a wider range of businesses with access to various benefits and schemes that can help them grow and sustain their businesses.
Wholesalers and retailers can now apply for Udyam Registration by providing basic details about their businesses, including their Aadhaar and PAN numbers. The process is entirely online and can be completed easily and conveniently.
By registering for Udyam, wholesalers and retailers can access various benefits, including easier access to loans, lower interest rates, and various tax exemptions, making it easier for them to operate and grow their businesses. Additionally, Udyam Registration holders can avail of the MSME Samadhaan scheme, which helps them recover delayed payments from buyers.
In summary, the extension of Udyam Registration to wholesalers and retailers is a positive development that can help promote the growth of these businesses and contribute to the development of the Indian economy. Businesses in these sectors should take advantage of this opportunity and register for Udyam to enjoy these benefits and contribute to the growth and development of the Indian MSME sector.