As a small entity, you can have access to priority tax exemptions, sector lending and capital investment and power tariff grants by registering under Udyog aadhar MSME registration online. MSMEs is nothing but Micro, Small, and Medium Enterprises which contribute primarily to the socio-economic development in India. To register under the Udyog Aadhaar just you need to fill the registration application with an Aadhaar Card which acts as the sole legal document.
How to register as MSME? Benefits of Registering under MSME in India. Know about MSME Registration Step by Step Online Guide.
MSMEs is a short form of Micro, Small, and Medium Enterprises which bestow primarily to the socio-economic development of the country. MSME udyog aadhar is regulated by the Ministry of Micro, Small & Medium Enterprises and it has to be registered under the Micro, Small and Medium Enterprises Development Act or MSMED to enjoy the benefits. MSME registration process is mandatory because it allows these business entities or enterprises to make use of the benefits from the various useful schemes launched by the government.
The MSME sector enterprises contribute about 95% of all the industrial units, 45% of the total industrial jobs, 50% of the Total trades or exports of India and more than 6000 different types of products and goods are produced or manufactured in these enterprises or industries according to the data provided on the aadhar udyog official website i.e., msme.gov.in. The economy of the country grows and flourishes as these industrial units grow. These types of industries are also known as SSI’s or small-scale industries.
What is MSME?
As per MSMED or Micro, Small, and Medium Enterprises Development Act of 2006, MSME or Micro, Small, and Medium Enterprises are classified into two different types and are as follows:
- Manufacturing Enterprises which are involved in the manufacturing or production of goods in the industry.
- Service Enterprises which are engaged in supplying or providing services.
The advantages of MSME Registration Online are as follows:
The advantages of MSME Registration are as follows:
- The rate of interest on loans is much lower when compared to the interest on regular loans.
- The bank loans provided to this type of enterprises become extremely cheaper as the rate of interest is very less; it is around 1 to 1.5%, once an individual goes for udyog aadhar new registration in India.
- The registered MSMEs are also applicable to get credit for MAT (Minimum Alternate Tax) and it can be carried forward for about 15 years instead of the time period of 10 years;
- There are several government tenders which are offered only for the MSME Industries.
- The MSME industries are allowed to get easy access to loans and credit.
- For registered MSME, the cost receiving an evident is done, or the cost of setting up of the business unit is reduced as many concessions and reimbursements are available to these industries.
- The businesses which are registered under MSMEs will get higher preference in the government certification and license process.
- There is a One Time Settlement Fee is imposed for all non-paid amounts of MSME certificate.
The eligibility criteria for MSME Registration
The difference between the services and manufacturing enterprises are removed by the recent Atma-nirbhar Bharat Abhiyaan Economic Package which was announced by the finance minister of India, Nirmala Sitharaman. The investment amount and annual turnover are made similar for industries or enterprises involved in both the service and manufacturing sectors.
Documents needed for MSME Registration in India
Listed below are documents and information required for the registration process of MSME Registration in India:
- Aadhar Card of the applicant
- Name of the Owner-as in the Aadhar Card;
- The social category of the applicant-
- Gender and Physical status of the applicant- physically disabled or not;
- Name and type of enterprise;
- PAN Number, Official Address of the enterprise’s plant
- Date of incorporation of the business
- The PAN Number
- Details of the previous registration of the enterprise, if any;
- Bank details of the enterprise;
- The business operations of the enterprise- “Service.” or “Manufacturing”
- The NIC Code;
- Details related to Employment such as total number of worker or employees working in the industry or organization;
- The information on investment in machinery and equipment unit of the organization.
The procedure of MSME Registration in India
- First of all, the applicants are required to fill the necessary details required in the Registration application form for the Registration of MSMEs and then submit the application form for Registration to the concerned department. The step of filing of the application form can be begun either online or offline.
- Gather and collect all the required documents as prescribed in the MSME Registration Application form. Usually, the process of collecting all the needed documents takes about 1 to 2 working days to reach the next Registration step.
- The applicant is required to upload the necessary documents and submit the application form to the Registrar of udyog aadhar msme. The regulatory authorities do the processing and verification of the authenticity or validity of the documents submitted by the applicant. This verification and processing take around another 2 working days.
- After the regulatory authorities are satisfied with the documents and other submissions made by the applicant, the company of the applicant gets registered under the MSME.