Entering the formal economy

MSMEs which are part of the formal economy have better access to finance and are able to reap the benefits of export, including refund of GST paid as taxes are not exported.

Task Points to ponder Comments / Next Steps
  • Have you registered your MSME with the Udyog Aadhar website?
  • Having registered the MSME has other benefits like the recipient of goods/services from MSME is bound to pay within 45 days of such receipts. Registration is free.
  • Government is proposing to do away with the distinction between ‘services’ and ‘manufacturing’ category of MSME.
  • Would you like to corporatize your MSME or convert it into an LLP?
  • YES/NO
  • Benefits of LLP/ Corporatisaton:
    • Limited Liability
    • Separate identity from owner
  • Are you aware about the dedicated helpdesk for MSMEs?
  • YES. ICAI is in process of developing this helpdesk. In the meantime, various department and ministry are also looking forward in this direction.
  • Look out for government grant/ subsidy
  • Are you worried about issues of Financial/ Statutory Compliances and feel relaxation in statutory compliances like filing of GST returns in time, timely refunds of GST payments and some other measures need to be taken?
  • Government is examining the matter and providing suitable relief measures.