MSME Registration

MSME Registration

To promote the growth of Micro, Small & Medium Enterprises, the government of India gives various concessions and extends financial assistance exclusively to the units or enterprises which qualifies to be a micro, small and medium enterprises. The Micro Small & Medium Enterprises Development Act 2006 makes it mandatory for MSME to register themselves with government and to obtain Udyog Aadhar for availing benefits provided under MSME Development Act. The terminology like MSME, SSI or Udyog Aadhar is one and same thing. In other words, there is only one registration which a micro, small and medium enterprises has to obtain and that is UDYOG AADHAR. MSME is the backbone of the modern Indian economy and is considered as the growth engine for equitable and sustainable economic development of the country. Under MSME all kinds of enterprises can obtain registration, like manufacturers the service providers are also eligible for MSME benefits. Hence, they are also required to get UDYOG AADHAR Registration.

Definition of MSME as per MSME Act

  • Micro Enterprises: An enterprise which is engaged in manufacturing can be classified as a Micro Enterprises in case the total investment in its plant and machinery is less than Rs. 25 Lakhs. However, in case the enterprise deals in service sector then the said investment must be less than 10 Lakh, during the financial year.
  • Small Enterprises: An enterprise which is engaged in manufacturing can be classified as a Small Enterprises in case the total investment in its plant and machinery is more than Rs. 25 Lakhs but does not exceed Rs. 5 Crores. However, in case the enterprise deals in service sector then the said investment must be more than 10 Lakh but must not exceed Rs. 2 Crores.
  • Medium Enterprises: An enterprise which is engaged in manufacturing can be classified as a Medium Enterprises in case the total investment in its plant and machinery is more than Rs. 5 Crores but does not exceed Rs. 10 Crores. However, in case the enterprise deals in service sector then the said investment must be more than 2 Crores but must not exceed Rs. 5 Crores.

Process of Registration

  • Udyog Aadhar is a free facility by government, and there is no fee charged by government. Visit https://udyogaadhaar.gov.in/ for registration.
  • PAN Number in case of company, LLP or cooperative society, it is optional in all other cases.
  • Aadhar number and pan of the applicant, an OTP shall go to his mobile and email id for confirmation.
  • Address Proof of Establishment, either in the form of a sale deed or valid rent agreement.
  • Bank Account Information (bank statement and cancelled cheque).
  • NIC Code of the products and services in which the enterprises are dealing at the time of registration.

Benefits of Registration as MSME or Udyog Aadhar

  • Easy availability of loan at concessional rate of interest from public sector bank.
  • Government procurement priority.
  • Electricity at concessional rate as per state policy.
  • Speedy recovery of dues
  • Rebate in taxes under direct & indirect taxation.
  • Concession in fee for IP protection

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