GeM Registration in Bangalore, Karnataka – Features, Process, Documents Required, Benefits

Overview of GeM registration in Bangalore, Karnataka

Public procurement is a method used by state-owned enterprises and government departments to purchase services and goods for their operational needs from private businesses. But, at times there are higher chances of collusion or corruptive practices taking place in the process. Hence, the Govt of India launched the Government E-Marketplace, an e-marketplace for public procurement from private individuals or businesses following the provisions of the Allocation of Business Rules, 1961 on 9 Aug 2016. It facilitates the union/state Government Departments/Ministries to procure goods/services of the highest quality at reasonable prices within the necessary delivery period from 3lakhs+ sellers listed on the portal.

The primary aim of the GeM is to encourage public participation, allow access to small-scale industries & start-ups to large buyers, ensure faster procurement of goods & services, and above all, bring transparency in the public procurement processes through direct purchase or e-bidding for larger orders in a contactless manner through direct purchase by Government/ Ministries /Departments of Central/State Governments from manufacturers/service providers directly with least interaction possible.

The GeM portal completes control and ownership of the marketplace through a Special Purpose Vehicle, a non-profit company formed under the direction & supervision of the Ministry of Commerce, under the Union Government of India. It overlooks the functionalities of the portal.

For the facilitation of smooth transactions between sellers & buyers, the GeM portal offers tools such as reverse e-auction, e-bidding, and demand aggregation to help government users/buyers get the best value for their money. However, to avail of all the benefits of the GEM, one needs to register themselves as a buyer or seller on the online GEM portal in Bangalore, Karnataka.

GeM registration in Karnataka

Located in the South-Western region of India, Karnataka was formed in 1956 with the passage of the ‘State Reorganisation Act.’ Earlier the state was known as Mysore, but in 1973 it was renamed Karnataka. The bordering states of Karnataka are Goa, Maharashtra, Telangana, Andhra Pradesh, Tamil Nadu, and Kerala. Demographically Karnataka is the 8th largest state by population, with a population density of 319 people per square kilometer.

The sex ratio of the state is 973 females per thousand males. Kannad is the state’s official language, and the other minority languages spoken in Karnataka are Urdu, Konkani, Marathi, Tullu, Tamil, Telugu, Malayalam, Kodava, and Beary. Even there are some villages in Karnataka where Sanskrit is primarily spoken. The word Karnataka is derived from the Kannada words Karu and Nadu, meaning elevated land; some people also interpret the meaning of Karu Nadu as Black region. The state is called the black region because of the black cotton soil found in the Bayalu Seeme region of Karnataka.

The economy of Karnataka is the sixth-largest economy in India, and it ranks 9th in the state human development index of India. The state is the manufacturing hub for some of the largest public sector industries in India, including – Hindustan Aeronautics Limited, National Aerospace Laboratories, Bharat Earth Movers Limited, Bharat Heavy Electricals Limited, etc. – these public sector industries are based in Bangalore.

Besides this, many of India’s premier science and technology research centers, including – the Central Powers Research Institute, the Indian Space Research Organisation, Bharat Electronics Limited, and Central Food Technological Research Institute, are also headquartered in Karnataka. The majority of the silk industry in India also has its base in Karnataka. India is agricultural land and Karnataka is no exception in this case. Agriculture-related activities are the primary sources of income in Karnataka, as nearly 56% of the workforce in Karnataka is directly or indirectly engaged in agriculture or agriculture-related activities.

Capital- Bangalore

The startup ecosystem in Karnataka

With the sixth-largest economy in India, Karnataka has one of the most mature startup ecosystems in India; that’s why Bengaluru, situated in Karnataka, is known as the startup capital of India. The state government has taken multiple initiatives to encourage startups and build a conducive startup ecosystem in the state. Karnataka was the top performer in the startup ranking exercise 2018 conducted by the department of industrial policy and promotion.

In November 2015, the Government of Karnataka launched its startup policy. The key features of the policy are as follows: –

According to the startup policy of Karnataka, the government will assist in setting up TBIs in institutions of high learning.

The state government would support the private sector so that they can set up incubation centers and accelerators or expand existing facilities and operations.

According to the startup policy of the Karnataka government, the state shall maintain a list of common instrumentation facilities present across the state.

To encourage and set up a robust startup ecosystem, the state government provides funding in the form of a Grant-in-aid to innovators. The funding will be up to 50 lakh rupees and will be provided to the innovators and businessmen who need early-stage funding.

According to the startup policy of Karnataka, the new age incubation scheme that is currently in execution at engineering colleges will be expanded to all the professional & post-graduate institutions in tier-two cities.

Startup ideas in Karnataka

Food delivery business

Food delivery services are highly required in the urban areas of Karnataka. The state has a large working population that orders online food, thus expanding the scope of food delivery services. If you are good at managing people and organizing the workforce, then you should try your hands at food delivery services in Karnataka.

Translation agency

Karnataka is popularly known as the byte-basket of the country for attracting huge foreign investors. For sealing business deals, the investors meet with the companies, but language is a barrier. The inflow of investors for business deals has opened various opportunities for multilingual people. Translators are required to overcome the language barrier; thus, opening a translation agency is an ideal business idea in Karnataka.

Organic food business

People are getting more health-conscious daily, and they are looking for more organic foods and items, thus expanding the scope of the organic food business. To establish an organic food business in Karnataka, you need to grow good quality organic food and sell them to the suppliers. Organic farming is different from normal agriculture, so you have to invest extra money and effort in setting up an organic food business. Once this business is set up, you will make huge profits because nowadays, people are getting more health-conscious and do not mind spending extra money on organic food.

Food processing business

The state is predicted to become the leading food processing hub in India. The food processing industry of Karnataka is undoubtedly on the threshold of demand-led growth in the country. Karnataka has ten agro-climatic zones, and its land topography is also suitable for agriculture, making it one of India’s most agriculturally diverse states. More agriculture means a rise in demand for food processing units; thus, establishing a food processing business in Karnataka can help you make huge profits.

Disposable plates business 

Today everything is made of plastic. Setting up disposable cutlery and plates built from banana leaves is a good business idea in Karnataka. Honestly, disposable cutleries and containers are part of our daily life; we use them regularly. Plastic cups and plates are heavily used; we use them even after knowing they harm our environment. People do want to bring a change, but they don’t know the alternative to plastic.

Karnataka has a lot of banana trees, which means that the raw material is locally available for setting up disposable plates and cutlery made from banana leaves. By setting up this business, you will make a profit and contribute to a cleaner and greener environment. This business needs a considerable amount of investment, but once it is established, it will help you make huge profits.

Salient Features of GeM portal in Bangalore, Karnataka

1. The GeM portal is a simple, convenient & contact-less marketplace that enables the buyers (Govt departments/Ministries/PSUs) to procure goods & services from the sellers who have registered themselves & listed on the portal in an efficient & transparent manner.
2. The GeM online marketplace has disrupted the traditional means of public procurement, and the whole concept rests on these three pillars namely- Inclusion, Usability & Transparency; and Efficiency and Cost Savings.
3. With tools like reverse e-auction, e-bidding, and demand aggregation, etc. among others, the GeM portal acts as a one-stop-shop that facilitates easier online e-procurement of consumer goods & services as required by various government sectors and departments.
4. Registration as either a buyer or a seller is the prerequisite to accessing the GeM portal in Bangalore, Karnataka. Also, it shall be compulsory for every seller to mention the ‘Country of Origin’ during the registration process, which will be displayed later on the portal. With GeM the Government of India aims to extend its support to smaller businesses and start-ups that can provide better products at reasonable prices.
5. The GeM portal eliminates the human interface allowing the buyer to search, compare select from the variety of products, and buy in bulk available on the platform which provides for details such as product details, quantities, etc. including all details required for each product. Similarly, the seller could list the products, and keep a check on the supplies, payments, and price changes as per the requirements and changing needs of the market.
6. Since the GeM portal is a completely transparent platform, there are no entry barriers or conditions for seller registration on the platform. The parties to a transaction on any particular transaction on the platform are notified of each progress through SMS and e-mail notifications for each transaction that takes place on the platform.

Important terms under the GeM portal in Bangalore, Karnataka

i. Buyer – The organizations who are eligible to register as a Buyer and are authorized to procure goods from the GeM portal in Bangalore, Karnataka–

• Ministries under Central Government/State Government
• Departments under the State government including its subordinate offices.
• Autonomous bodies registered under Union & State Governments
• Central and State autonomous bodies.
• Public Sector Undertakings (PSUs)
• Local bodies.

However, the buyer’s abovementioned shall be required to authorize Government officers/heads of offices as the primary users on the GeM portal in Bangalore, Karnataka, which includes-

• Any officer of Central Government/State government/ Public Sector Units (PSU).
• Autonomous bodies/ Local bodies/ Constitutional Bodies, or Statutory Bodies at the Deputy secretarial level;
• Head of the office at Sub-Centre/ Unit/ Branch.

It is to be noted that these primary users are only responsible for registering their organizations on the GeM portal, but they are prohibited from participating in the process of procurement and can only be a consignee to receive a service/product. They are required to create user accounts for the secondary users, assign them roles and responsibilities and supervise all secondary users’ transactions on the portal. Secondary users will be responsible for procuring supplies of goods/services and related functions like receipt of stores, placing contracts and making seller payments, etc. The secondary user shall be authorized to use the GeM portal in Bangalore, Karnataka for such purchases as provided below-

After obtaining bids, the purchases must be made using the reverse auction tool or online bidding provided on the portal (except in the case of automobiles where the applicable limit is Rs. 30Lakh. However, the procuring authorities should certify the reasonability of rates.

ii. Seller – Every seller who wishes to offer his products/services to the buyers on the GeM portal needs to register himself as a listed Seller by making an online application along with the prescribed documents and fees, i.e. commonly known as GeM registration.

In other words, the seller is a legal entity that sells his/her goods or renders services to the buyers registered on the GeM portal in Bangalore, Karnataka. Any of the following may be registered as a seller on the GeM portal in Bangalore, Karnataka-

• Sole Proprietorship firm.
• Partnership firm.
• Limited Liability Partnership (LLP).
• Private and public limited company.
• Society registered under the Societies Act.
• Statutory bodies.

iii. Original Equipment Manufacturer – Under the GeM portal in Bangalore, Karnataka, there are two categories of sellers i.e. OEM (Original Equipment Manufacturer) or an authorized Reseller. While OEM is the actual owner of the trademarked products offered for sale on the portal or such actual manufacturers who do not possess any trademark, whereas reseller is a person/entity having the authorization to sell products manufactured by the OEM in the open market.

Following are the persons who are considered OEMs and can sell products on the GeM portal in Bangalore, Karnataka:

• Manufacturers
• Brand owners and third-party manufacturing.
• Importer and authorized sellers.
• Service provider.
• Assemblers

Process of GeM Seller Registration Online in Bangalore, Karnataka

Step 1 – Access the GeM portal in Bangalore, Karnataka

In the first step of registration, the applicant will be required to access the GeM portal by logging on to (https://gem.gov.in/). On the page, you will find two tabs Seller or Buyer registration, the user will be able to find it right below the “Sign Up” tab, which will redirect him to the page of “terms and conditions” of the website, before, starting the process, go through the module accurately before tapping on the “accept” option.

Step 2- Create a Seller Account on the GeM portal in Bangalore, Karnataka

The first step towards seller registration on the GeM portal is by creating an account for the prospective seller. Registration on the GeM portal should be done only by an authorized person (Director of the organization or a key person/proprietor). Sellers can sign up on GeM through the Aadhaar/PAN card of the key person of the organization.

Step 3- Update Organization Profile & Fill up the Form in Bangalore, Karnataka

After acceptance of the terms & conditions on the portal, the user will be redirected to the gem seller registration form.  During this, the user will be required to fill in details of the applicant as well as his organization in four main sections- PAN validation, Organization details, office location, and bank account details. Further, there are three operational sections i.e. MSE, Start-up, & Tax Assessment, which need to be completed one by one.

• Jot down the name of the organization correctly.
• Now, the user will be required to choose the type of registration as per his comfortability. i.e. Aadhaar or PAN-based registration and further include personal details such as the Name of the applicant or authorized signatory, card number, DoB, address, etc.
• Next, the user will enter his mobile number details which should be in use, and verify the same using OTP. To receive OTP Tap on the “Send OTP” option. Once OTP is received, enter the OTP in the prescribed section & authenticate it. Similarly, the user has to authenticate his email address.
• Once the user authentication is completed, he can create his username along with the password for accessing the GeM portal & completing the process of GeM seller registration.

After the completion of the user profile on the portal, caution money has to be paid by the seller under the turnover of the entity.

Step 4- Seller Assessment on GeM in Bangalore, Karnataka

In the next step, the seller needs to apply for seller assessment through the GeM portal to obtain an OEM certificate. Seller Assessment is compulsory for those who wish to participate in public procurement of Q1& Q2 categories of products, which is carried out by the Quality Council of India. Thus, irrespective of the category of products required to be sold on the portal, manufacturers must become OEMs.

Step 5- Listing of the Products/Services to be procured through GeM in Bangalore, Karnataka

Subsequently, after registration & assessment, the OEM can list his offerings with his brand under the relevant category of products & services. Vendors can list their products whether or not the trademark is registered or not registered on unbranded products. After listing, the products & services of the sellers/vendors will go on live on the GeM website after the GeM authority approves the listing.

Step 6 – Bid Participation & Appointment of Resellers in Bangalore, Karnataka

After listing the products or services to be procured by the buyers on the platform, any registered seller can participate in the tender & submit quotations and accept orders on GeM.  OEMs can submit bids either through themselves or through the authorization of resellers to list their products & services after getting approval.

Next, whenever any buyer buys any products, the concerned seller needs to deliver the product to the consignee when an order is received by entering its details on the portal. After the order is delivered, the consignee will inspect the product and issue acceptance or rejection online. If the consignee accepts the order, he/she will generate a Consignee Receipt and Acceptance Certificate (CRAC).

Once the CRAC is issued, the buyer will process the bill & forward the same to the payment authority post which the payment will be received within ten days of the generation of CRAC.

Caution Money is required to be deposited for GeM Registration in Bangalore, Karnataka

Documents Required for GeM Registration in Bangalore, Karnataka

Like any other process of authorized documentation, the user will be required to prepare & keep ready the following documents while filling the form for seller registration on the GeM portal in Bangalore, Karnataka-

• Proof of identification for the primary user (proprietor/ nominated partner or authorized signatory in case of company/LLP) e. Aadhaar, PAN, etc.
• Certificate of Incorporation of the business organization including Udyog Aadhaar, or LLP-associated requirements
• Verification of the Authorised person of the business organization through Income Tax Return)
• Details of – Registered Office, Billing Address, Factory, Warehouse, other Office Premises
• Bank Account details of the business along with the supporting KYC documents;
• Trademark registration certification;
• Details of communication mobile number & email address as per Aadhaar Card
• MSME registration certificate(where applicable)
• NSIC registration certificate (if applicable)
• The latest copy of ITR (along with the details related to business profits or gains)

It is to be noted that during the process of seller profile assessment if any of the documents submitted are found to possess false information, such applicant will be exterminated from the registration procedure.

Benefits of GeM Portal in Bangalore, Karnataka

i. Encourages Equal Public Participation in Govt. Tenders– The primary objective behind the launch of GeM is to curb corruptive practices and allow more public participation in Government tenders.

ii. Simple, Convenient & User-Friendly Dashboard- The GeM portal has been designed in a way to simplify end-to-end processes from registration to transaction between sellers & buyers on the platform, which could be completed the conveniently at any place by any applicant in India. Further, with new tools like e-bidding, auction, payment, contract management, etc. the process has been made more effective as well as efficient.

 iii. Allows greater benefits for the buyers- The GeM portal also allows several benefits for the buyers including-

• Opportunity to get the best from the variety of offerings available from the sellers at reasonable prices through e-bidding from more than 3Lakh sellers;
• Longer bidding duration between 10-21 days;
• Pin-code-based seller choice for direct purchases;
• Availability of ATC library for the addition of terms and conditions;

iv. Benefits to SMEs & Start-ups– The GeM portal also allows benefits to small-scale industries & start-ups with features such as –

• Allowing Direct purchases up to Rs. ₹25,000
• L1 purchases for sums between ₹25,000 – 5 Lakhs rupees.
• Enables price comparisons and price trends between Multiple Suppliers
• Allows Integrated Payment Systems & notifications to suppliers directly.

v. Complete Online security – The GeM portal safeguards sensitive information related to both parties through its secure platform. It also takes effective measures such as e-verification of documents & e-signed digitally at each stage.

vi. Effective Grievance Redressal Mechanism – GeM portal allows a quick & effective online grievance redressal mechanism between parties online.

vii. Introduction of new features for OEMs- In order to afford more convenience for OEMs, there have been certain new features introduced through the portal which include additional enhanced parameters in the existing report apart from the new chart widgets in agreement with the OEM & MAIT recommendations.

viii. Benefits for Sellers-

• Direct Access To The Largest Buyers In The Country
• PAN (Presence across Nation) India Reach With Minimal Marketing
• Direct Purchase, Bids, And Reverse Auctions
• Dynamic Pricing Based On Market Conditions
• Multi-Lingual Support Desk

Make in India (MII) Certificate for OEMs in Bangalore, Karnataka

Through a circular no. P-45021 was notified on 04.06. 2020, the Department of Promotion of Industry & internal trade, under the Government of India declared a ‘Make in India’ certificate to be issued to the sellers in Bangalore, Karnataka encouraging the Make in India initiative & promoting the manufacturing and production of goods & services in India and further create employment opportunities  & enhance the income of the population. The sellers having the Make in India certificate will be given more preference during L1 (lowest bidding) during receiving bids for the tenders. Additionally, local suppliers holding a Make in India certificate on the GeM will also be given preference under other categories.