Udyam / MSME Registration

The micro, small, and medium-scale businesses (MSMEs) are big contributors to India's Gross Domestic Product (GDP). Actually, over 110 million people are employed in MSMEs as well. However, these businesses have been facing a set of problems and issues in expanding their influence or presence.

To locate and assist such MSMEs, an initiative was taken by the Indian Government on May 13, 2020, regarding introducing a new criterion for the classification of MSMEs in India. As per this criterion for classification, all MSMEs in India will be known by the name ‘Udyam’ and will have to necessarily undergo a registration process referred to as the ‘Udyam Registration’. The process of registration through ‘Udyam Registration’ is now made obligatory for all MSMEs from July 1, 2020.

MSME stands for Micro, Small, and Medium Enterprises. MSME registration is a government initiative aimed at providing benefits and support to small and medium-sized businesses in India. The registration is voluntary and enables businesses to avail various incentives and assistance offered by the government.

The primary purpose of MSME registration is to promote the growth and development of micro, small, and medium enterprises by facilitating access to credit, subsidies, and other government schemes. It also helps in creating a database of MSMEs for statistical and policy purposes.

To qualify for MSME registration, a business must meet the eligibility criteria based on its investment in plant and machinery or equipment for manufacturing enterprises, or investment in equipment for service enterprises. The specific criteria vary for micro, small, and medium enterprises.

Benefits of MSME registration include easier access to bank loans at lower interest rates, subsidies on patents and trademark registrations, exemption under certain direct tax laws, protection against delayed payments, priority sector lending, and access to various government schemes and programs.

The process of obtaining MSME registration typically involves filling out an application form with the required details and supporting documents. The registration can be done online through the Udyam Registration portal, which replaced the earlier Udyog Aadhaar registration system.

MSME registration is an important step for small and medium-sized businesses to gain recognition and access government support for their growth and development

As an MSME business owner, some advantages of registering your business under the Udyam category are as follows:

• It will assist in acquiring government tenders
• You can take business loans at lower interest rates from banks and non-banking financial corporations (NBFCs).
• You can avail yourself of tax rebates offered exclusively to Udyam.
• Obtaining government approvals, licenses, and registrations for your business will be very easy for you.
• You will receive tariff subsidies and capital tax subsidies.
• You will be able to benefit from concessions for establishing your industry.

Other Benefits in Brief:

1. Access to Financial Assistance: Udyam Registration enables MSMEs to avail easier access to bank loans, credit facilities, and financial assistance at preferential interest rates.
2. Subsidies and Incentives: Registered MSMEs can benefit from various subsidies, incentives, and schemes offered by the government, including subsidies on patents and trademarks, reimbursement of ISO certification expenses, and more.
3. Tax Benefits: Udyam Registration provides MSMEs with tax exemptions, benefits, and deductions under certain direct and indirect tax laws, relieving the financial burden and promoting business growth.
4. Protection against Delayed Payments: Registered MSMEs have the right to seek compensation for delayed payments from buyers, helping to ensure timely cash flow and improving the overall financial stability of the business.
5. Priority Sector Lending: Udyam Registration enables MSMEs to access priority sector lending, meaning they are given preference in obtaining loans from financial institutions, further easing their financial requirements.
6. Government Support and Programs: Udyam Registration facilitates MSMEs' participation in various government programs, policies, and initiatives aimed at their development, skill enhancement, market access, and technological upgradation.

The Micro, Small, and Medium categories of enterprises as classified by MSME are eligible to apply for MSME registration. A person alone cannot apply for MSME registration. A proprietorship firm, partnership firm, company, trust, and society having investment not exceeding Rs.50 crore and turnover not exceeding Rs.250 crore are eligible to apply for MSME registration.

Investment

Annual Turnover

Classification

< Rs. 1 Crore

Upto Rs. 5 Crores

Micro Enterprises

< Rs. 10 Crore

Upto Rs. 50 Crores

Small Enterprises

< Rs. 50 Crore

Upto Rs. 250 Crores

Medium Enterprises

• Aadhar Card (Applicant)
• PAN of Proprietor/Firm/LLP/Company
• GST Certificate

• Skilled Team of CA, CS, and Lawyers, and On-Call Support
• Dedicated Relationship Manager
• Company formation process is managed fully online.
• Quick turnaround and affordable pricing
• Thousands of Happy Customers
• Take advantage of offers like No Cost EMI / Referral Discounts