MSME/Udyam Registration is a government registration that provides a recognition certificate and a unique number. This registration certifies that the business falls under the category of small and medium enterprises.
The primary objective of this registration by the government is to offer maximum benefits to small and medium businesses or industries in India, ultimately benefiting the Indian economy in the long run.
To register under the MSME/Udyam registration, the proprietor, partners, or directors need to provide their Aadhar card details, including their 12-digit Aadhar number.
The classification of an enterprise as a micro, small, or medium enterprise is based on the following criteria:
- Micro Enterprise: The investment in plant and machinery or equipment should not exceed one crore rupees, and the turnover should not exceed five crore rupees.
- Small Enterprise: The investment in plant and machinery or equipment should not exceed ten crore rupees, and the turnover should not exceed fifty crore rupees.
- Medium Enterprise: The investment in plant and machinery or equipment should not exceed fifty crore rupees, and the turnover should not exceed two hundred and fifty crore rupees.
These criteria determine the classification of the enterprise and the benefits it may be eligible for under the MSME/Udyam registration.
There are several benefits that enterprises can enjoy after registering under MSME/Udyam:
- Government Tenders: Businesses with MSME registration have the advantage of participating in specific government tenders reserved for small businesses. This provides opportunities to increase revenue and secure government contracts.
- Bank Loans: Udyam registered businesses are eligible for cheaper bank loans. They can avail a 1.5% discount on the interest rate, making financing more affordable and accessible.
- Government Licenses and Certificates: Udyam registration facilitates easier acquisition of licenses, approvals, and registrations across various fields of business. Government bodies often prioritize businesses registered under the Udyam scheme, making the process smoother and faster.
- Cost Reduction in Trademarks and Patents: Businesses with Udyam registration receive a 50% discount on government fees for trademark registration. Additionally, Udyam registration helps reduce the overall cost of obtaining a patent, providing financial benefits for businesses seeking intellectual property protection.
It’s important to note that these benefits are subject to specific terms and conditions as per the MSME/Udyam registration guidelines. Enterprises should consult the official portal or relevant authorities to understand the complete details and requirements to fully leverage these advantages.
The checklist/requirements for MSME/Udyam Registration:
- Aadhaar Number: Aadhaar numbers of the proprietor, directors, or partners of the enterprise are required for the registration process.
- PAN & GST Number: PAN (Permanent Account Number) and GST (Goods and Services Tax) number are mandatory for the registration.
- Certificate of Incorporation: If the enterprise is incorporated as an organization, a Certificate of Incorporation is required.
- Business Address Proof: Proof of the business address, such as utility bills or lease agreement, is necessary for the registration.
- Partnership Deed/MoA and AoA: Partnership Deed for partnerships or Memorandum of Association (MoA) and Articles of Association (AoA) for companies should be provided.
- Copies of Licenses and Bills: Copies of licenses obtained and bills of machinery purchased for the business may be required as supporting documents.
- Number of Employees: Information about the number of employees working in the enterprise should be provided.
Please note that these requirements may vary slightly based on specific guidelines and regulations of the MSME/Udyam registration process. It is advisable to refer to the official portal or consult with relevant authorities for the accurate and up-to-date checklist applicable to your registration.
List of the process for MSME Registration:
- Provide Required Documents and Information Gather and share the necessary documents and information for MSME registration.
- Finalize the Application Prepare and finalize the application for MSME registration, ensuring all details are accurately filled out.
- Approval from MSME Submit the completed application to the MSME authority for review and approval.
- Receive Deliverables Upon approval, receive the recognition certificate and unique identification number for the registered MSME.
Please note that this is a simplified overview, and the actual process may involve additional steps or requirements depending on the specific guidelines and regulations of the MSME registration in your region. It is advisable to consult the official MSME portal or relevant authorities for detailed instructions and guidance.
The key deliverables for MSME Registration typically include:
- MSME Application: This refers to the completed application submitted for MSME registration. It includes all the necessary information and documents required for the registration process.
- MSME Registration Certificate: Upon successful registration, a certificate is issued as proof of MSME registration. This certificate contains important details such as the unique identification number assigned to the registered MSME.
Please note that the specific deliverables may vary based on the requirements and procedures set by the MSME authority in your region.
What do you want to know?
Yes, By Having a MSME registration the government fee of trademark application gets reduced by 50%. That is 50% discount on the trademark application fee.
Most states offer those units registered under the MSMED Act a subsidy on power, taxes, and entry to state-run industrial estates. In particular, there is a sales tax exemption in most states and purchase preferences on goods produced. The Central and State Governments provide certain important benefits to MSME in the initial years of business. Exemption in excise and certain direct taxes are just to name a few.
All MSMEs which are not enlisted as ineligible activities under MSMED act falling under the definition of MSME are eligible for registration. The only condition is it should be running unit.
As per the latest gazette notification the activities with code 45, 46 and 47 are neither manufacturing units nor service units as per the definition of MSMED act 2006.Hence they can’t get Udyog Aadhar Memorandum (which is called MSME registration).45, 46, and 47 are activities related all types of wholesale and retail trading activities. Departmental store falls under one of these activities.
Yes, you can apply for MSME registration for a proprietary firm.
Although MSME Registration is not mandatory, it is always advisable for the Micro, Small & Medium Enterprises to get MSME Registration. It helps them to avail various benefits under the MSME Act.
Yes you can if it falls under the defined criterion of MSME. As per the revised definition, any firm with investment up to Rs 1 crore and turnover under Rs 5 crore will be classified as “Micro”. A company with investment up to Rs 10 crore and turnover up to Rs 50 crore will be classified as “Small” and a firm with investment up to Rs 20 crore and turnover under Rs 100 crore will be classified as “Medium”.