MSME OR UDYOG AADHAR REGISTRATION

Description

In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two categories:

Manufacturing Enterprises:

As per the first schedule to the industries (Development and Regulation) Act, 1951, the Manufacturing enterprises defined in terms of investment in Plant & Machinery, are those enterprises that are engaged in the manufacture or production of goods for any specific industry.

Service Enterprises:

Defined in terms of investment in equipment, service enterprises are those enterprises which are engaged in providing or rendering services.

Eligibility Criteria for registration under MSME Act

For manufacturing Business:

Sr. No.

Enterprises

Investment in Plant and Machinery

01

Micro Enterprises

Does not exceed twenty-five lakh rupees

02

Small Enterprises

More than twenty-five lakh rupees but does not exceed five crore rupees

03

Medium Enterprises

More than five crore rupees but does not exceed ten crore rupees

For service providers:

Sr. No.

Enterprises

Investment in Equipments

01

Micro Enterprises

Does not exceed ten lakh rupees

02

Small Enterprises

More than ten lakh rupees but does not exceed two crore rupees

03

Medium Enterprises

More than two crore rupees but does not exceed five crore rupees

Documents required for MSME Registration:

  • Aadhar card of the applicant (Proprietor/partner/director)
  • Name of applicant
  • Pan of Business Entity
  • Social Category of the applicant entrepreneur (General, Scheduled Caste, Scheduled Tribe or Other Backward Castes (OBC)
  • Business name
  • Type of business/legal entity
  • Address where plant is located
  • Office address
  • Date of commencement of business
  • Bank details (Bank Account and IFSC Code)
  • Business activity
  • Number of employees
  • Investment in Plant and Machinery or equipment
  • Investment in Plant and Machinery or equipment
  • Mobile number (linked with adhar card)
  • Email Id for OTP Verification

Benefits of UDYOG Aadhar/MSME Registration

  • Benefits of all the government schemes such as an easy loan, loan without guarantee, loans with subsidized rates of interest etc.
  • Financial support for participating in foreign expos to showcase their products.
  • Eligible for government subsidies.
  • Registration would facilitate hassle-free opening of current bank accounts in the name of the business.
  • Allow businesses to apply for government micro business loans and other such related beneficial schemes.
  • Collateral free loan from banks
  • A hefty 50% subsidy on Patent/trademark registration
  • 1 % exemption on interest rate on overdraft
  • Eligible for Industrial Promotion subsidy
  • Protection against delayed payment (maximum credit period 45 days)
  • Concession in electricity bills
  • Reimbursement of ISO certification charges
  • Tax Benefits
  • Government tenders only for MSME

Some Points to be noted for MSME Registration:

  • MSME registration is also known as Udyog Adhar Registration and it is voluntary registration, not mandatory.
  • If someone wishes to register for more than one industry then they should opt for individual registration
  • In this form, the MSME has to self-certify its existence, details of the business activity, bank account, ownership and employment details and other information
  • No registration fees are required to be paid for this process.
  • After filling the details and uploading the same, the registration number would be generated and the same would be mailed to the email address given in the UAM which should contain unique UAN (Udyog Aadhaar Number).
  • Some of the MSME schemes launched government are Udyog adhar memorandum, zero effect, zero defect

Govt. of India scheme for MSME Sector

  • Loan upto 1 crore within 59 minutes through online portal
  • Interest Subvention of 2% for all GST registered MSMEs on fresh incremental loans
  • All companies with a turnover of more than 500 crores to be mandatorily on TReDS platforms to enable entrepreneurs to access credit form Banks, based on their upcoming receivables, thus, solving the problems of cash cycle
  • All PSUs to compulsorily procure 25 % from MSMEs instead of 20% of their total purchases
  • Out of 25% procurement mandated from MSME, 3% reserved for women entrepreneurs
  • All CPUs to compulsorily procure through GeM portal.
  • 100 Technology centres to be established to the cost of Rs. 6000 crore
  • Govt. of India to bear 70 percent of the cost for establishing Pharma dusters.
  • Returns under 8 Labour laws and 10 Union regulations to be filed once in a year

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