Micro, Small and Medium Enterprises Development Act, 2006 has classified industries into 2 sectors Manufacturing enterprises and Service Enterprises. Manufacturing enterprises are involved and engaged in the activities related to production and manufacturing of products and goods.
Service enterprises are involved and engaged in the activities related to rendering services. Such enterprises are classified in the category of Micro or Small or Medium on the basis of investment and turnover, that is defined as follow:
Micro enterprise: An enterprise having investment in plant and machinery or equipment is less than 1 cr. rupees and turnover does not exceed 5 cr. rupees will be classified as Micro enterprise.
Small enterprise: An enterprise having investment in plant and machinery or equipment is less than 10 cr. rupees and turnover does not exceed 50 cr. rupees will be classified as Small enterprise.
Medium enterprise: An enterprise having investment in plant and machinery or equipment is less than 50 cr. rupees and turnover does not exceed 250 cr. rupees will be classified as Medium enterprise.
Alonika.in has a team of expert professionals and consultants providing you the best assistance with regards to UDYAM Registration (MSME Registration). Contact us and get your organisation registered.
Advantages of UDYAM Registration (MSME Registration)
- Various subsidies: MSME department provides various subsidies to the enterprises registered with them, such as subsidy for IPR registration (Trademark and Patent registration), subsidy for ISO registration, Subsidy for Bar Code, etc.
- Collateral Free Borrowings: Credit Guarantee Fund Scheme (CGFS) for MSME provides collateral free borrowings for long term requirements as well as for working capital requirements without any third party guarantee.
- Delayed Payment recovery: Registered MSME’s can avail the facility of MSME Samadhan for recovery of delayed payment in case the buyer does not make the payments as per the terms of agreement and if there is no agreement within 45 days, the buyer will be liable to make the payments along with interest which may be 3 times as prescribed by the RBI.
- Public Procurement: Public Procurement policy was introduced in the year 2012, and notified under section 11 of MSMED Act, 2006. In the year 2015 an overall procurement goal of minimum 20% has been made mandatory form MSE of the Tender value for every Central ministry / Department / PSU. Tenders are set free of cost for MSE’s and exemption from payment of earnest money.
Documents Required for MSME registration
- Aadhar no of applicant Proprietor / Authorised Signatory (Partner / Director / Trustee / Karta).
- Aadhar must be linked to Mobile no.
- PAN of Applicant (Proprietor / Partnership / LLp / Company / Trust / HUF)
- Address proof
- Banking details (Account no, Name of Bank, and IFSC code)
- Contact details (Mobile no and Email id)
- Activities of enterprise or scope of working
- GST registration (GST registration is mandatory from 1st April 2021)
Process of MSME registration:
- Fill the query form
- Provide the required details and documents and make the payments
- Our team will coordinate with you and file the application for MSME registration
- It generally takes 3-5 days to generate MSME certificate, once it is generated will be shared with you.
Various schemes and Subsidies launched by Government for MSME
- Subsidy for Trademark Registration: 50% subsidy on Government fee is provided to all the enterprises registered with MSME except proprietorship concerns.
- Subsidy for Patent Application: 50% subsidy on Government fee is provided to all the enterprises registered with MSME except proprietorship concerns.
- Reimbursement of Registration fee for Bar Codes (One time and recurring for 3 years). This reimbursement is given to MSME for buying Bar Codes from GS1 India only and 75% of one time registration fee and 75% of annual recurring fee for the first 3 years only.
- Marketing Assistance Scheme: Under this scheme assistance is provided related to taking part in exhibitions for Space rent, Freight charges, Air fare, Advertisement and Publicity in Foreign countries.
- Bank Loans at reduced interest rates are provided to MSME’s.
- Reimbursement of ISO 9001/14001/18000/22000/27000 or HACCP certification cost upto a maximum limit of Rs. 75000 for each certification.
- Concession in electricity bill is provided to all enterprises registered with MSME’s by making an application to the Electricity board.