MSME Udyam Registration is important for small, micro, and medium-sized enterprises to gain legal recognition. Companies that are registered with Udyam get URN, as well as an official certificate to confirm the MSME status. MSME search is essential to confirm the authenticity of suppliers and vendors. You can avoid being a part of a relationship with illegal suppliers as well as legal problems.
What is MSME?
MSME is an acronym used for Micro, Small, and Medium Enterprises. In India, MSMEs are classified based on their investment and annual turnover. Business registered under the Udyam receives legal recognition and various government benefits like easy loans, subsidies, and tax benefits.
When should you do an MSME search?
You should perform an MSME number search:
- Before Onboarding a New Vendor
MSME search confirms that the vendor or business is legitimate before initiating any agreement. It reduces the risk of fraud.
- While Conducting Due Diligence or Credit Checks
MSME registration verification is essential for due diligence when you evaluate a vendor’s credibility, financial stability, and legal standing.
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How to Perform an MSME Search?
Follow the simple steps to easily do an search MSME details for verification:
- Go to the Udyam Registration Portal.
- Enter the required information and click on verify.
- Get details for verification.
MSME Search by Third-Party Services
Apart from the Udyam Portal, you can also use third-party platforms that offer MSME number search or MSME verification services. They are easy to use and provide instant results. For verification, you just need basic details like the company name or URN number. For businesses that need to verify multiple MSMEs, manually checking each one can be time-consuming and challenging.
These platforms offer bulk verification and simplify the verification on a large scale. But remember that always choose the authorized platforms or service providers.
How to search MSME Certificate?
You can verify the MSME Certificate directly from the Udyam Portal:
- Visit the Udyam Registration Portal.
- Click on the Print/Verify, then select Print/Verify.
- Enter the Udyam Registration Number of the MSME.
- Enter your Mobile Number and proceed with OTP verification.
- Get certificate details for verification.
Common Errors and Troubleshooting: If no record is found in the MSME Search
Business is not registered:
- No Record Found: You will not find the information related to the business if you have entered the incorrect URN or the business is not registered. So, double-check the number and look for typo mistakes.
- OTP Not Received on Mobile: You may not receive OTP if there are network issues. So, check whether you have entered the registered number or not. Retry after a few minutes or try a different network.
- Portal Not Loading or Slow: If there is server downtime or technical issues, details will not be loaded on the screen. Rephrase the page, clear browser cache, or try again using incognito mode or a different browser.
Legal Implications of Skipping MSME Verification
You can face financial and reputational damage, along with legal trouble, if you skip MSME Verification.
Penalties Under the MSME Act for Delayed Payments
According to the MSMED Act, 2006, if a company delays payment beyond 45 days, legally, they will become liable to pay interest at 3 times the RBI’s bank rate. That’s why it is quite important to verify MSME status because you may unknowingly break the law.
Risk of working with fraudulent companies
If you skip proper verification, you may partner or start work with an unregistered or fraudulent business. This can lead to:
- Financial Fraud.
- Fake invoices or mismatches.
- Reputational Harm.
- Legal scrutiny during audits.
Use Cases of MSME Search
- Procurement Vetting: Businesses can use the MSME search to verify the authenticity of a vendor before doing any business.
- Payment Compliance Checks: According to the MSME Act, businesses should pay MSMEs on time; delay in payment can lead to fines and penalties.
- Loan Processing by Banks: Banks and NBFCs conduct an MSME search to check the legitimacy of borrowers before approving loans. It helps check the legitimacy of MSME-specific credit schemes and interest subsidies.
Conclusion
MSME Search or verification is important to confirm the legitimacy of the vendor, supplier, or borrower. As fraud cases are increasing, verifying MSME details has become even more important. You can easily verify MSME details through the Udyam Portal or through the authorized third-party verification services. The above step-by-step guide helps you verify easily. Verification prevents working with non-compliant businesses and protects your company from legal risks.
FAQs
How to check if a company is MSME registered?
You can obtain MSME details through the URN number from the Udyam Registration Portal.
What is the Udyam Registration Number?
It is a 16-digit alphanumeric identification number issued to MSME businesses.
Is Udyam Registration mandatory for all MSMEs?
Yes, Udyam Registration is mandatory for all the MSMEs.
Why is MSME verification important?
It confirms that the business is legally registered.
Is Udyam registration mandatory for all MSMEs?
Yes, businesses must register under Udyam to get legal recognition as an MSME.
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