MSME stands for micro, small and medium scale enterprises. MSME contributes significant share to the GDP of our country. To boost MSME, government has launched many schemes. To avail the benefits of such scheme, MSME registration is a mandatory thing.
Every entity dealing either in manufacturing or service industry, can obtain MSME registration. Its not mandatory but it is beneficial to get one’s business registered under this because it provides many benefits in government fees concesssion, applying for tenders, subsidies, business formation, loan facilities etc. The sole objective of MSME is to boost and promote micro, small and medium enterprises.
MSME are classified into two categories:
They are defined in term of investment in Plant and Machinery/ Equipment as below
| Nature of Enterprise | Micro | Small | Medium |
|---|---|---|---|
| Manufacturing | Rs 2,500,000 | Less than Rs 50,000,000 | Less than Rs 100,000,000 |
| Service | Less than Rs 10,00,000 | Less than Rs 20,000,000 | Less than Rs 50,000,000 |
This is complete online registration. It can be completed in 1 day from the date receipt of the documents.
Government fees on Trademark Application for entities such as Company, Partnership Firm and LLP are higher compared to Proprietorship firms. These entities may get 50% rebate in the Government fees on submission of MSME registration certificate. Similarly, there is a rebate for Patent registration also.
Govenrment is promoting Micro, Small and Medium industry by giving loan support through -distinctly prescribed norms. The MSME holder entity would be able to get loans at a lower rate of interest because the subsidized rates offered to MSME registrants.
MSME registered businesses get the protection against delayed payment from buyers. This is most common problem for the small businesses. Buyers always delay in making payments to the small business but under this scheme all the enterprises are protected. It provides right to sue the buyer & dispute can be resolved in minimal time.
This is also known as Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE). This scheme is designed to support small scale industries which provides the credit and income input from various sources to support industries which are struggling.
Manufacturing and service industry can obtain MSME online registration subject to provided classification. Further, the enterprise can only be registered if the concerned activities are included under the classification provided for the registration purpose.
With notification issued dated 27.06.2017, the ministry has excluded activities of wholesale or retail trading; Fishing and aquaculture; Forestry and logging; and more. Business entities engaged solely into activities falling under such categories cannot make an application for registration.
No, this is a voluntary registration and not compulsory. The entities obtain registration due to benefits and subsidies that are granted by the government in this regards.
Yes, Aadhar card of the applicant is mandatory for udhyog aadhar registration. In case, the applicant is other than a proprietor, Aadhar card of company’s director or LLP’s partner is required.
Yes, the certificate is provided in a soft copy by the Government on the registered email id of the applicant or entity. The certificate is available on Udyog Aadhar portal and can be downloaded with help of applicant’s Aadhar number.
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