BENEFITS UDYAM/MSME REGISTRATION

 In India, the process of registering a small business is called MSME registration.

Micro, small, and medium-sized businesses (MSMEs) account for over 30% of the country's gross domestic product (gdp). They are an important part of the supply chain in terms of exports, accounting for around 40% of total exports. MSMEs employ over 110 million people in the United States and contribute to job creation.

The Indian government encourages the expansion of this sector by launching numerous programmes to ensure that MSMEs continue to drive the country's economic progress. The government recently unveiled a several projects as part of the 'aatmanirbhar bharat' agenda. The criteria for designating MSME have also been updated in accordance with the strategy. A business is categorised as a micro, small, or medium organisation based on its "investment in plant and machinery" and "turnover."

 

MSMEs are classified according to their investment turnover.

small business less than inr 10 crore up to inr 50 crore medium business less than inr 50 crore up to inr 250 crore micro business less than inr 1 crore less than inr 5 crore micro business less than inr 1 crore less than inr 5 crore micro business less than inr 1 crore less than inr 5 crore micro business less than inr 1 crore less than inr 5 crore micro business less than inr 1

With effect from July 1, 2020, all existing and new MSMEs will be required to get 'udyam' registration, which is a simple online registration based on self-certification.

 

The aadhaar number is required to achieve udyam registration. Udyog aadhaar registration has been replaced with udyam registration, which is a new and streamlined version of udyog aadhaar.

 

The applicant will receive a 'udyam registration certificate' after registration. Although udyam registration is not required for MSMEs, there are certain perks that an MSME will be eligible for following regeneration.

Subsidized electricity expenses are one of the benefits of MSME registration.

Free business loan with no collateral subsidy for patent registration interest-free overdraft protection against late payments

govt. subsidy for industrial promotion

reimbursement of ISO certification fees

MSMEs can be classified as manufacturing under the Micro, Small, and Medium Enterprises Development Act of 2006 if they meet the following criteria:

 

In the case of Micro Enterprises, the investment does not exceed INR 25,00,000.

In the case of Small Enterprises, the investment surpasses INR 25,00,000 but does not exceed INR 5,00,00,000.

In the case of Medium Enterprises, the investment surpasses INR 5,00,00,000 but does not exceed INR 10,00,00,000.

If the following conditions are met, MSME can be recognised in the service sector:

 

In the case of Micro Enterprises, the investment does not exceed INR 10,00,000.

In the case of Small Enterprises, the investment surpasses INR 10,00,000 but does not exceed INR 2,00,00,000.

In the case of Medium Enterprises, the investment surpasses INR 2,00,00,000 but does not exceed INR 5,00,00,000.

The MSME definition was recently updated by the Indian government, with yearly turnover being added as a new criteria alongside investment. According to the revised definition, MSME can be identified if:

 

In the case of Micro Enterprises, the investment is not more than INR 1,00,00,000, and the yearly turnover is not more than INR 5,00,00,000.

In the case of Micro Enterprises, the investment does not exceed INR 10,00,00,000, and the annual turnover does not exceed INR 50,00,000,000.

In the case of Micro Enterprises, the investment does not exceed INR 20,000,00000, and the annual turnover does not exceed INR 1,00,00,00000.

Online registration for MSME For young entrepreneurs who aren't yet MSME-registered or who have EM-II.

MSMEs can take advantage of a number of advantages. However, in order to take advantage of these benefits, you must first register your company on the UAM (Udyog Aadhaar Memorandum) platform.

 

"How to apply for MSME registration online" is now the question on your mind. The following are the steps to MSME registration:

 

To fill out the form, go to the government portal (UAM site).

If you are a new businessman who has not yet registered as an MSME, go to the first link on the website, which says "For New Businessmen who have not yet registered as MSME/ those with EM-II." To access the form, simply click here.

After entering your Aadhaar number and name, click 'Validate & Generate OTP'.

After the verification is complete, enter the PAN information as well as the type of business. Select the 'No' option if PAN is not accessible.

Fill in the details in fields 5 through 24 of the form.

To correctly submit the form, enter the OTP received on your phone number and the verification code.

After a successful registration, a "Thank You" message will appear, along with the registration number.

Within 2-3 days of properly submitting the application form, approval and registration will be completed.

Your MSME registration will be completed once the application is approved, and you will receive the certificate through email.

Already registered as a businessperson Having a Memorandum of Udyog Aadhaar

To fill out the form, go to the government portal (UAM site).

After the verification is complete, enter the PAN information as well as the type of business. Select the 'No' option if PAN is not accessible.

Fill in the details in fields 5 through 24 of the form.

To correctly submit the form, enter the OTP received on your phone number and the verification code.

After a successful registration, a "Thank You" message will appear, along with the registration number.

Within 2-3 days of properly submitting the application form, approval and registration will be completed.

Your MSME registration will be completed once the application is approved, and you will receive the certificate through email.

Already registered as a businessperson Having a Memorandum of Udyog Aadhaar

To fill out the form, go to the government portal (UAM site).

The most basic type of economic activity

NIC 2-digit code for bank account number

Details on the turnover (according to MSME new definition)

Details of the investment (plant/equipment details)

Copies of purchase and sales invoices

Copies of partnership deeds and purchase bills of machinery

MSME Registration Fees

MSME registration can only be obtained through the Udyam Portal. There are no costs associated with MSME registration.

Benefits of MSME Registration

MSME registration has a number of advantages, including:

You will be able to obtain bank loans at the lowest possible interest rate. When compared to the standard interest rate on loans, the rate of interest is approximately 1%-1.5 percent cheaper.

You can also take advantage of the tax benefits by claiming MAT (minimal alternate tax) credit, which can be used for up to 15 years.

There are numerous incentives and rebates offered for establishing an industry or obtaining patents.

You have the option of reimbursing the ISO Certification payments.

MSMEs can readily assess their creditworthiness.

For delinquent amounts owed to small and medium businesses, a one-time settlement charge must be paid. PayU India can be used to pay for this.

Government tenders are easy to come by because the government favours small and medium-sized businesses.

Several government programmes, such as the Credit Linked Capital Subsidy Scheme, the Credit Guarantee Scheme, the Protection Against Delayed Payments Program, and the Public Procurement Policy, are available to you.

MSMEs are eligible for priority sector loans from banks.

Subsidy for bar-code registration

Special consideration for international trade fairs Concession on MSME electricity bills

MSMEs are also supported by the state government.

Udyam MSME Registration: Everything You Need to Know (Earlier known as Udyog Aadhar)

Udyam Registration was created with the intention of making the process of establishing a Micro Small Medium Enterprise (MSME) easier for business owners.

Prior to the formation of Udyam Registration, the process was a time-consuming bureaucratic one that necessitated the handling of a huge number of files.

Prior to the formation of Udyam Registration, the process was a time-consuming bureaucratic one that necessitated the handling of a huge number of files. Since the implementation of Udyam Registration, things have changed and, in some ways, improved for medium, small, and micro-businesses.

If you operate a medium, small, or micro-enterprise and haven't registered it yet, you should know that registering your MSME through Udyam Registration entitles you to a slew of perks.

Prior to the UAM system, there was an EM-I/II system (Entrepreneur Memorandum).

Entrepreneurs used to choose a heterogeneous system under this system.

Some of them used to rely on the national portal, while others relied on state-run portals to complete MSME registration. In addition, just a small minority of them used to rely on printed documents.

However, since the prior system was replaced, things have changed.

Who is eligible to

register for Udyam?

Let's clarify some things up! Organizations that qualify for Udyam Registration are either engaged in the production, processing, or preservation of commodities or in the provision of services. Traders that buy, sell, import, or export goods are not eligible for Udyam Registration.