How to Check MSME Registration by PAN Number

Important Keywords: How to Check MSME Registration by PAN Number, Apply for MSME Registration, Apply for Udyam Registration, Apply for Udhyog Aadhaar Registration,

Words: 1,527; Read time: 8 minutes.

How to Check MSME Registration by PAN Number

Understanding the process of MSME registration is crucial for businesses, particularly when it comes to complying with Section 43B(h) of the MSMED Act. Compliance with this section of the MSMED Act is essential, especially with the mandatory 45-day or 15-day payment window for MSME suppliers. However, confirming whether a supplier is registered under MSME remains a common hurdle, as the Udhyam portal does not offer this feature. 

This article explores alternative approaches to help streamline the verification process, where one can check whether the other party has their PAN registered in MSME.

Benefits of Verifying MSME Registration

Knowing the MSME status of your supplier through the PAN verification feature on the MSME portal offers several key benefits:

1. Ensures Compliance with Payment Regulations: Under Section 43B(h) of the Income Tax Act, payments to MSME suppliers must be made within 45 days (or 15 days in some cases). Verifying the supplier’s MSME status helps businesses stay compliant and avoid potential penalties or disallowances.

2. Improved Financial Planning: Businesses can better manage their cash flow by identifying which suppliers are registered under MSME. It allows for prioritizing payments to avoid missing statutory deadlines and ensuring smooth operations.

3. Transparency and Trust: Verifying MSME status through a reliable source like the official MSME portal adds transparency to business transactions. It builds trust between buyers and suppliers by confirming the legitimacy of the supplier’s registration.

4. Access to Potential Benefits: Working with registered MSME suppliers may offer benefits such as government incentives or tax advantages. By verifying status, businesses can strategically collaborate with MSMEs to leverage these opportunities.

5. Streamlined Supplier Management: Having a clear list of MSME-registered suppliers makes it easier for businesses to categorize and manage vendor relationships. This helps in better procurement planning and meeting legal obligations.

Way to Confirm the Supplier’s MSME Registration Status

Method 1: Firstly, examine the supplier’s invoice. Many suppliers make it convenient by clearly mentioning their MSME number on the invoice, allowing customers to easily verify their registration status. Additionally, some suppliers specify their MSME category — whether Micro, Small, or Medium on the invoice. This method provides a straightforward and reliable approach to checking whether a supplier is officially registered as an MSME.

Method 2: If the MSME number is not mentioned on the invoice, you can visit the official MSME portal at https://udyamregistration.gov.in/. Using the supplier’s PAN number, you can quickly check whether they are registered as an MSME.

Steps to Verify MSME Registration Using PAN on MSME Portal

Kindly note that by following the mentioned steps, you can only check whether the supplier’s PAN is registered as an MSME or not.

To check the status, follow these steps:

Step 1: On the portal’s homepage, click on “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II.”

Step 2: For the purpose of your verification, enter your Aadhar Card number and your Name as per Aadhar. Click on “Validate & Generate OTP” and validate the page by entering the OTP received on your registered mobile number.

Step 3: Once Aadhaar verification is complete, you’ll be directed to a form where you need to provide supplier business entity details:

• Select business entity type from the options available (e.g., Proprietary, Partnership, Private Limited, etc.).
• Provide the PAN number of the supplier you wish to verify. If the PAN is not readily available, you can retrieve it using the supplier’s GST number.

Step 4: After entering all data, click on “PAN VALIDATE”. The portal will process the PAN details. Depending on the results, the portal shows two responses:

1. “Udyam Registration has already been done through this PAN” – means the supplier is already registered under MSME with their PAN.
2. “Your PAN has been successfully verified. Some fields of the form will be disabled. Disabled fields will be automatically filled after verification from PAN data,”– means the said PAN of the supplier is not registered as an MSME. In this case, the compliance requirement under Section 43B(h), which mandates payment to MSME suppliers within 45 or 15 days, does not apply.

This straightforward approach allows business owners to easily verify if their suppliers are registered under MSME and compliant with the payment timelines mandated by the Act. Although it doesn’t specify the supplier’s category, it helps identify which suppliers fall under the MSME umbrella, enabling better planning for the future.

Common Challenges and How to Solve Them

While the process is straightforward, here are some potential challenges and solutions:

1. Incorrect PAN Details: Double-check the PAN number entered to avoid errors.
2. Portal Downtime: If the Udyam portal is down, try accessing it during non-peak hours.
3. Discrepancies in Registration: Contact the Udyam support team if the displayed details don’t match your records.

Finodha’s Role in Simplifying MSME Verification

At Finodha, we understand that navigating through the complexities of MSME registration and verification can be a challenging process for many businesses. That’s why we offer specialized services to help simplify the entire MSME procedure. Whether you’re wondering how to check MSME registration by PAN number or need assistance with registration, Finodha is here to guide you every step of the way.

How Finodha Helps with MSME:

1. Expert Assistance: Our team of professionals is well-versed in the MSME registration process. We provide personalized guidance to ensure that you’re always on track.
2. Easy Access: With Finodha, you don’t have to worry about navigating the Udyam portal yourself. We handle the process of the MSME certificate, ensuring a smooth experience.
3. Timely Support: Our team ensures that any issues related to MSME registration tracking or PAN-based MSME status checks are resolved quickly.
4. No Hassle: Forget about the stress of managing documents or dealing with errors. Finodha takes care of all the details, providing you with verified, accurate information regarding your MSME registration.
5. Speedy Process: We ensure your registration is verified in a fraction of the time, making sure you don’t miss out on the benefits.

Conclusion

Learning how to check MSME registration by PAN number is essential for business owners and stakeholders alike. By following the steps to verify MSME registration using PAN, you can check whether your supplier is registered as a MSME, which helps you to ensure compliance, boost credibility, and access financial advantages.

This alternative process of online MSME verification process on the Udyam portal is quick, secure, and entirely free, making it accessible to businesses of all sizes. Take the first step to confirm your supplier MSME status and unlock the benefits that come with it.

Ready to check the status of MSME registration? Visit the Udyam Portal today and ensure your business is on the right track!

---

Frequently Asked Questions (FAQs)

More Information: https://taxinformation.cbic.gov.in/

Read more interesting articles: