Who is Eligible for GeM Registration?

GeM or the Government e-Marketplace is a recent innovation from India’s government to ease the procurement solutions. Around it is accomplished, the government departments and public sector undertakings (PSUs) and several organizations are able to purchase the required materials and services in a more effective, efficient and economical way. GeM registration is a mandatory requirement for those who want to become suppliers of products and providers of services to the government.

What is GeM (Government e-Marketplace)?

GeM is an online portal developed by the Ministry of Commerce & Industry that aims to help the government order products and services. Its purpose is to improve the government procurement process in terms of transparency, effectiveness, and responsibility. Through GeM, sellers who provide their products and services to government buyers are directly registered.

GeM also aims to provide easy access to new markets and do business by opening up a market for government procurement.

GeM / Government e-Marketplace Registration – Who Can Register?

GeM registration is open for many types of sellers and firms. We now discuss the criteria for supplier categorisation and its relation to the eligibility of suppliers.

1. Micro, Small and Medium Enterprises in India

The registration with GeM is mainly intended for SMEs in India that need to procure public goods and services. The government targets the MSME’s participation in the Procurement Act, where they are allowed to register to participate in the procurement processes. To qualify as an MSME on GeM, the business must meet the following criteria:

• Micro Enterprises: Machinery or plant costs not more than one crore of rupees.
• Small Enterprises: The machinery or plant that involves investment can be between one crore to ten crore rupees.
• Medium Enterprises: Fixed assets include land and buildings, machinery or plants that cost between ₹10 crore and ₹50 crore.

Lenders, borrowers and sellers are awarded prices and other incentives, such as faster payment as preferred entities in GeM, especially MSMEs.

2. Manufacturers and Producers

Suppliers, Vendors, and Sellers of all products fall under the criteria for GeM registration as long as the following qualification parameters are met. Manufacturers should be able to give the product they manufacture, which should come with a valid certificate of origin description of the product, among other things. Other producers that participate in production segments such as agriculture or food production can also supply goods in those sectors to government departments.

3. Authorized Dealers, Resellers, Distributors

Manufacturers’ authorized dealers, resellers, and distributors who are eligible to source product stocks directly from the manufacturer can also register with GeM. Such vendors are required to produce authorization certificates from the manufacturers and are also expected to deliver products to the government directly.

The only requirement is that the dealer has proper documents that conform to the manufacturer’s requirements for the resale or distribution of products.

4. Service Providers

Even service providers in different categories can schedule their registration with GeM. They include Information Technology, consulting, transport and warehousing, property management, health care services and many others. The service provider must have offered services before, and he/she has to fulfil all the requirements established by the government in connection with the respective fields.

For example, a service provider who intends to sell consultancy services must produce evidence of competency to be allowed into the GeM platform.

5. Startups and New Enterprises

Under the Startup India program, the government has urged young companies to join the GeM platform. GeM registration can be applied to all types of startups operating in technology, healthcare, manufacturing, service industry, etc. Some of these are GST registration and company registration, and the business must also be up to date on all the legal documents they need for operation.

6. Foreign Suppliers (with Indian Presence)

foreign firms who wish to bid for a supply of goods or services to the Indian government are also allowed to register on GeM but must do so under a valid Indian physical address. Of course, they will have to have an office, a branch, or a registered presence in India to execute business through GeM. Foreign companies are expected to provide documents that show they are doing business in India.

Key Eligibility Requirements for GeM Registration

1. Valid Business Registration

• The supplier must be legal in that it is registered legally. This can encompass sole traders, partnerships, LLPs or private limited companies to mention but a few.
• Sole proprietors must have an official business name and trade license.

2. GST Registration

Every seller needs to possess a proper GST registration number, failing which the concerned vendor will not be allowed to sell his products on the website. GeM registration makes it compulsory for the business to adhere to GST to properly structure taxes and billings.

3. Bank Account

Another is that a business must own an operational bank account in the name of the registered business entity to receive payments from the government.

4. PAN Number

A genuine PAN is necessary for the proper handling of and transparency in operations that entail financial rigour.

5. Product or service certification

Various types of certification or quality assurance documents must be supplied depending on the classification of the type of product and service being offered.

6. Contact Details

Some important information required includes a valid email address and phone number for communication concerning orders, updates, and other information.

Benefits of GeM Registration for Eligible Vendors

• Access to Government Procurement: Once registered with the portal, they readily sell their products to government departments, public sector undertakings, and other public entities. This gives businesses a very large number of potential consumers.

• Transparent and efficient Process: GeM eliminates third parties, thus shortening the procurement cycle. It also makes prompt payments and is ‘neutral’ when approving bids.

• Expedited Payments: One advantage that vendors have when dealing in GeM is that they are paid quicker and deal with less paperwork than when having to go through the normal tender processes.

• Opportunities for MSMEs and Startups: GeM is especially useful for financially small and newly-established companies – they get access to governmental tenders and have additional benefits from GeM.

Conclusion

GeM registration allows firms and organizations of different sizes and belonging to different sectors to provide the government sector with the necessary supplies and services. The geM can be of immense usage for various segments of the company, from small enterprises, manufacturers, service providers, and even foreign companies that have subsidiaries in India.

First, make sure that your business and classification meet the requirements for registration and collect the required documents to pass this stage more efficiently. The highlights of GeM registration are countless, and it is a good opportunity for one’s part in what the government intends to do in regard to increasing transparency and efficiency in procurement.