MSME/ Udyam Registration
MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy. Even if the Company is in the manufacturing line or the service line, registrations for both these areas can be obtained through the MSME Act.
MSME called by various name, like: Small Scale Industries (SSI), Udyog Aadhar Memorandum (UAM), Udyam.
Government has started various schemes, incentives and benefits in terms of taxation, setting up the business, credit facilities, loans etc. to promote small scale industries and to avail such incentives MSME registration is mandatory.
MSME/ UDYAM Registration Eligibility
According to the MSMED Act, 2006, also known as Micro, Small and Medium Enterprises Development Act define MSME as below:
Now, under the Aatmanirbhar Bharat Abhiyan (ABA), the government stated the “New Criteria” as Amended in FY 20-21 with Gazette ID “CG-DL-E-01062020-219680” (applicable from 1st July 2020); MSME classification on the basis of both investment and annual turnover. Also, the manufacturing and the services sectors under the MSME definition has been covered.
some points to be noted for search criteria of MSME Classification;
1. Turnover excludes Export Turnover.
2. Plant and Machinery excludes:
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equipment such as tools, jigs, dyes, moulds and spare parts for maintenance and the cost of consumables stores;
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installation charges/ charges paid for technical know-how for erection of plant and machinery;
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research and development equipment and pollution controlled equipment power generation set and extra transformer installed by the enterprise as per regulations of the State Electricity Board;
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bank charges and service charges paid to the National Small Industries Corporation or the State Small Industries Corporation;
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procurement or installation of cables, wiring, bus bars, electrical control panels (not mounded on individual machines), oil circuit breakers or miniature circuit breakers which are necessarily to be used for providing electrical power to the plant and machinery or for safety measures;
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Gas producers plants/ Fire Fighting equipment;
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transportation charges (excluding sales-tax or value added tax and excise duty) for indigenous machinery from the place of the manufacture to the site of the enterprise;
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such storage tanks which store raw material and finished produces and are not linked with the manufacturing process;
REGISTRATION OF ENTERPRENEURSHIP WITH MSME
Register your business enterprises as MSME to take the benefits of Government package and more benefits which will be announced by government in future. The entity has to submit following documents mentioned as under to our mail for registration under MSME/ Udyam.
Documents required for MSME Registration:
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Aadhar Detials of Directors/ Partners/ Proprietor (mandatory registered with mobile to get OTP)
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Mobile No. registered with Aadhar.
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E-mail id for registration
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PAN of Directors/ Partners/ Proprietor
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Address Details of Directors/ Partners/ Proprietor
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PAN of Organisation
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Incorporation Certificate (In case of Company/ LLP/ Trust/ Society)
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Registration Certificate (GST & others, if available)
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Partnership deed (In case of Partnership Firm)
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Bank Details (Cancel Cheque)
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Business Address Details
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Business Profile of Organisation/ Nature of Business (MOA-AOA, Trust deed etc.)
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Amount Invested in Plant & Machinery in the Organisation (Copies of licenses and bills of purchased machinery)
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No. of employees working in the Organisation (Male, Female, Others)
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Turnover details (as per new MSME definition)
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Enterprise doing digital transaction (Payments), if yes, than mode of transactions (net banking, wallet, credit card, debit card etc.)
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If Exporter, than provide IE Code
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Social group of owner (SC, ST, OBC, General etc.)
Benefits for MSME Registration:
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Bank Loan (Collateral Free) with lowest interest rates.
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Overdraft Interest Rate Exemption
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Protection against delayed payments
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Very easily accessible credit for MSMEs
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Reimbursement of ISO Certification
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Avail special rebates and concessions on patents and industry set-ups.
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One time settlement fee for the amount unpaid
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higher preference for government license and certification
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Concession in electricity bills
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Get credit guarantee schemes from the Government
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Special consideration on International Trade fairs
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Bar code registration subsidy
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Support from your state government
How can ASK Commercial Solutions help you:
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ASK Commercial Solutions team hope that the details are help to those who are willing to start an entrepreneur role under Micro, Small or Medium scale business.
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We are committed to helping entrepreneurs and small business owners start, manage and grow their business with peace of mind at an affordable price.
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Our aim is to educate the entrepreneur on the legal and regulatory requirements and providing all type of Company Registration, Startup’s, DPIIT, GST, IEC, FSSAI, UDYAM, Accounting and Taxation Support services too; Contact us immediately