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Posted on October 19, 2021
How do I cancel MSME registration?
Registering MSME is mandatory for all types of business which is running as MSMEs, without MSME registration no business shall be qualified for availing the benefits allocated for MSMEs by the government of India. Main aim of MSME is to simplify regulatory procedures of MSMEs like filling trademark, Applying for new GST registration, availing collateral-free loans and scheme or offers that are introduced by the government. Registration of MSME is a completely done online process. The registration process completes with a unique 12 digit identification number which is issued to the owner and it represents the legal identity proof of his/her business by the government. In spite of easy MSME registration, a lot of companies wanted to know how to cancel or delete MSME registration permanently. This article clears up how to cancel the MSME registration.
Nowadays MSME Registration has gained huge importance for business in our country. Whether it a small-scale or mid-scale business, after having subbed the Micro Small and Medium Enterprise registration process, MSME Registration has become mandatory. The main reason behind the introduction of this MSME scheme through the Micro, Small and Medium Enterprises Development Act, 2006 was to bring down the involvement of paperwork in the existing Registration process of MSME. After MSME introduction in 2015, the Micro, Small and Medium Enterprises registration process has been made easier and simple with few clear steps and importantly it can be done both offline and online.
Before, the MSME Registration scheme, the owner of the business had to fill Entrepreneurship Memorandum-I and Entrepreneurship Memorandum-II with the appropriate District Industrial Center. However, after the introduction of MSME , these two Entrepreneurship memorandums were replaced with MSME Memorandum which is very simple and understandable. And it is also easy to obtain the MSME Card, all you have to do is to submit some personal documents along with the documents relating to the business sought to be registered.
MSME is a twelve digit unique identification registration number provided by the Ministry of Micro, Small and Medium Enterprises, Government of India. By registering MSME , your business enterprises will qualify to avail of various benefits under different government schemes, such as concession on the electricity bill, loan on the low-interest rate, stamp duty registration, trademark, bank transactions and many more on the list. It is just like normal Aadhaar card but it is for business and enterprises and it is also called as Aadhaar for Business. In India, from 2015 that is after its introduction, over 84 lakhs micro, small and medium enterprises or businesses were registered under this scheme by the end of the year 2019.
Procedure to Cancel MSME Registration
Oftentimes it is said that MSME cannot be canceled or deleted rather it can only be modified or updated but that is not true. There is a way or procedure to cancel MSME and it can be done only in the offline procedure. Here is a step-wise procedure to cancel MSME registration.
Search for a MSME Registration Center
The first step in the cancellation of MSME Registration is to find the nearest MSME Center in your location ( the location where you run your business). It is usually placed near the District Industrial Center. Basically, every state has a separate center and here you can get the form for cancellation of MSME Registration. if you are unable to find the correct location of the MSME Registration center, just look at the bottom your MSME Registration Certificate, the address and contact details of the District Industrial Center will be specified there.
Applying for Cancellation
For cancellation of MSME Registration, write an application or formal letter to the MSME Registration Center, stating all the details of the enterprise or business activity, and write whose registration need to be terminated or canceled. Also, state the reason for the termination or cancellation of MSME Registration briefly in the application.
Documents Required for cancellation of MSME Registration
Even though there is no particular list for the needed documents for the cancellation of MSME , it is always better to carry all necessary documents of the enterprise such as apart from the application form, original MSME Card, bank account details related to that business and documents which you submitted during the registration process. Have the photocopies and also the originals of these above-mentioned documents.
Get the Acknowledgement
Once your application and other documents satisfied all the requirements, get an acknowledgment from the authorized officer at the District Industrial Center. Keep this acknowledgment safe as it may be needed sometime in the future.
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Here are a few important things which you have to remember while canceling the MSME
- Before applying for a cancellation of the MSME Card, check that you have closed all your business activities related to that particular enterprise. And importantly, you need to deactivate the bank accounts related to that particular business.
- If some places, a declaratory letter is required in which you have to specify if your enterprise avail any of the benefits of government schemes, under the MSME Card.
- While writing the application for cancellation of the registration, state the reason for the cancellation briefly and very clearly. If the details or reasons relating to the enterprise mentioned are not correctly, then there are prospects for rejection of the cancellation application.
- There is no fee required at the time of updating or cancellation of the MSME .
- To make it clear, the misconception that MSME registration cannot be terminated or canceled is completely untrue. It can be done very easily, but all you have to do is the owner of the enterprise have to visit one of the MSME Centre in person and then have to submit an application for the cancellation of the MSME. One more thing that has to be notified is to carry all the documents related to the business while submitting the cancellation application.