Udyam Registration: Small businesses play a crucial role in boosting the economy of any country. In order to promote all types of establishments and the growth of new and existing businesses in India, the Indian government has launched various schemes.
What is MSME Udyam Registration Scheme
These schemes provide valuable support to small and medium-scale enterprises. To take advantage of these benefits, it is necessary to complete your Udyam registration, which is also referred to as Udyog Aadhaar or SSI registration. Vakilsearch can assist you in completing this process with just a few simple steps.
Benefits of Udyam Registration MSME
Here are some of the major benefits that registered MSMEs receive under the Micro, Small & Medium Enterprises Development Act, 2006:
- Collateral-free loans: Banks offer collateral-free loans to micro and small enterprises business under the credit guarantee fund scheme (CGS).
- Exclusive manufacturing: Certain items can only be manufactured by small-scale enterprises.
- Faster licensing and registrations: MSME registration makes it easier to get licenses, registrations, and approvals for your microenterprise.
- Speedier process: Showing your MSME certificate while making applications can speed up the process.
- International trade participation: MSME-registered enterprises get special consideration for participating in international trade fairs, exhibitions, and buyer-seller meets. They can also hold international seminars and conferences related to the MSME sector.
- Subsidized prices: MSME registration allows you to get many things done at a subsidized price, such as barcode registration, NSIC performance and credit ratings, industrial promotion subsidy (IPS) subsidy, ISO certification, electricity bill, and patent registration.
- Lower interest rates: Banks charge a lower interest rate for MSME-registered enterprises.
- Capital subsidy: The CLCSS scheme provides a 15% capital subsidy up to ₹15 lakhs for purchasing plant and machinery to promote technological growth among micro industries.
- Government tender benefits: While applying for a government tender, microenterprises receive benefits such as the free issue of tender sets, exemption from paying earnest money, and waiver of security deposit up to a certain monetary limit.
- Additional benefits: There are many other benefits under the Act, and benefits are introduced through annual budgets as well.
Eligibility Criteria for Udyam registration MSME
- Any business entity fulfilling the maximum turnover and investment criteria for MSMEs in India can get the Udyam registration certificate.
- The investment criteria and annual turnover criteria for each type of enterprise are as follows:
| Type of Enterprise | Investment Criteria | Annual Turnover Criteria |
|---|---|---|
| Micro | Does not exceed ₹1 crore | Not exceeding ₹5 crore |
| Small | Does not exceed ₹10 crore | Not exceeding ₹50 crore |
| Medium | Does not exceed ₹50 crore | Not exceeding ₹250 crore |
Registration Steps for Udyam Aadhar registration MSME
For benefits provided by Udyam registration for your business, you need to complete the registration process. Follow these steps to register your business:
- Go to the official website for Udyam registration by clicking on the link provided (udyamregistration.gov.in)
- Click on the ‘New Registration‘ tab on the homepage to access the Udyam registration form.
- Enter your Aadhaar card and PAN card numbers and verify them by entering the OTP received on your registered mobile number.
- Choose your business type and provide your business PAN number associated with your business accounts.
- Fill in all the needed details in the form, double-checking each piece of information before submitting the form.
- Submit the form and validate your Udyam registration by entering the OTP sent to your registered mobile number.
- Upon successful registration, you will receive a ‘Thank You‘ message on your registered mobile number and email ID, along with your Udyam registration number.
- You can then download and print your Udyam Aadhar Registration Certificate.
Types of MSME registrations available:
- Provisional MSME Registration: This registration is suitable for entities that have not yet begun functioning. The following benefits can be availed by entities with provisional registration:
- Obtain facilities for accommodation, land, etc.
- Obtain important approvals and NOCs
- Obtain clearance from regulatory bodies such as the pollution control board and labour regulations.
- Obtain term loans and working capital from financial institutions and banks under priority sector lending.
A PRC (provisional registration certificate) is allotted to new enterprises without any field enquiry and is valid for 5 years.
- Permanent MSME Registration:
- This type of registration is for industrial units that are already functioning.
- Businesses with permanent registration can access all the benefits available to MSMEs.
- However, there are conditions that must be met to obtain permanent registration, including obtaining statutory and administrative clearances as required.
- The unit must not violate any regulation or restriction.
- The value of the plant and machinery in the unit must not exceed the prescribed limits.
- Additionally, there should be proof that the enterprise is not owned, a subsidiary of, or controlled by another industry.
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