Steps to get Udyam (MSME) Registration Online with our expert's help.
Get Udyam Registration to avail government benefits in Rs. 999 only.
MSME stands for Micro, Small, and Medium Enterprises. MSME is governed under the MSME Act, 2006 which aims to facilitate the promotion and development of micro, small and medium enterprises. These enterprises act as an ancillary to large enterprises providing employment to a large number of people all over India. The growth of the small-scale sector will ultimately lead to an increase in the growth of the economy and act to mitigate any income inequalities.
All these enterprises will be called “Udyam” and their registration process will be considered as “Udyam Registration”.
However, with the advent of globalization and increased expenditure in Research and Development by some countries. Domestic small scale industry is facing a lot of hurdles, to safeguard domestic industry Indian government launched MSME Act, 2006 which have numerous benefits. Before we move upon the benefits, let’s first understand how to classify an enterprise into Micro, Small, and Medium enterprises.
An enterprise can be classified as “Micro, Small and Medium Enterprise” on the basis of the following.
“Micro-Enterprise” is the one whose investment in plant and machinery/equipment does not exceed Rs. one crore and turnover do not exceed five crore rupees.
“Small Enterprise” is the one whose investment in plant and machinery/equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees.
“Medium Enterprise” is the one whose investment in plant and machinery/equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
Focus on the word “and”, which simply means turnover and investment limit will be checked together.
However, if an enterprise crosses the turnover or investment in its present category, it will be placed in the next higher category moving from micro to small (upward direction). Here the turnover and investment will be separately checked. Now, to move to the lower category like moving from small to micro category (downward direction) the turnover and investment will be checked together.
All units having GSTIN based on the same PAN number, for all such enterprises collective value of turnover and investment would be seen not separately for each GSTIN.
Loan Facilities: All micro, small and medium enterprise requires funds for the initial phase. After registering for MSME Registrations, loans and credit facilities are available at concessional rates of interest.
Holding Payments of MSME Enterprises: Specific provisions have been provided in the MSME Act regarding delayed payments associated with the MSME Enterprises and interest calculation thereon.
Subsidy on Patent Registration: All MSME Enterprises get a benefit of a 50% subsidy on patent registration fees.
Overdraft Interest Rate Exemption: MSME Enterprises can avail a benefit of 1% interest on an overdraft in a scheme that differs from bank to bank.
Several other benefits like concessions on electricity bills, ISO Certification fees reimbursement, Barcode Registration Subsidy, and government credit guarantee schemes.
Aadhar Card and PAN Card are the documents required for MSME Registration. PAN, GST, and Income Tax details are fully integrated with Udyam Registration Portal and the data will be automatically populated from the government database. MSME Registration Process is conducted online on https://udyamregistration.gov.in/.
For Partnership firms, the Aadhar Card and PAN card of the partner is to be used, for companies Director Aadhar and PAN can be used and for Limited Liability Partnership, Aadhar and PAN of designated partner can be used.
Udyam registration process is free. There is not any government fees associated. Aadhar Number is mandatory for obtaining Udyam Registration. All existing enterprises registered under EM- Part II or UAM shall register again Udyam Registration Portal on or after the 1st day of July 2020.
As of the 1st day of July 2020, new criteria for the classification of MSME were made effective. All enterprises till 30th June 2020 shall be reclassified in accordance with the notification. The existing enterprise’s registration prior to 30th June 2020 shall remain effective only up to 31st March 2021. An enterprise registered with any other organization under Micro, Small, and Medium Enterprise shall register itself under Udyam Registration.