MSME / Udyam Registration is a procedure for companies in the manufacturing and business service sectors who want to take advantage of the Ministry of MSMEs’s benefits. For small and medium businesses in India, MSME / Udyog Aadhar / Udyam registration is a legal necessity.
MSME are categories into two divisions –
- Manufacturing Businesses
- Service Enterprises
According to a Government of India notification dated July 26, 2020, all existing small and medium-scale enterprises must be converted to Udyam, and any business or manufacturing unit previously registered under MSMS, Udyog Aadhar registration, or SSI will be treated as a valid MSME certificate only until December 31, 2021. On July 1, 2021, the Ministry of MSME began Udyam Registration.
Many major benefits are available to businesses who register as an MSME, including:
- Electricity bill reductions: This subsidy is accessible to all MSME registrar certificated businesses who submit an application to the Electricity Department along with their registration certificate.
- Collateral-free loans are available through banks: All MSME business sectors are eligible for collateral-free credit from the Indian government. These programmes provide micro, small, and medium-sized businesses with no-collateral loans.
Assisting MSME’s in fulfilling its working capital requirements and restoring activities halted by the Covid-19 issue. The Indian Finance Minister unveiled the Emergency Credit Line Guarantee Scheme, a proposal worth Rs. 20 lakh crore (ECLGS). This programme will run through December 31, 2021.
- Fully automatic machinery is eligible for a 15% import subsidy: The Ministry of MSME’s running plan for technology up-gradation is called “credit-linked CGSTI Subsidy Schemes (CLCSS).”
The revised initiative intends to help micro and small businesses upgrade their technology by giving a 15% capital subsidy for the purchase of plant and machinery. Currently, the plan has certified over 1500 well-established and enhanced innovations across 51 sectors.
- Payment Protection for Small and Medium-Sized Enterprises (MSME Samadhan): Buyers of MSMEs or SSIs’ services and products have a habit of postponing payment. The Ministry of MSMEs helps small enterprises by allowing them to collect interest on client payments that have been delayed. Conciliation and arbitration should be used to resolve such disputes as quickly as possible.
If an MSME registered business provides goods or services to a buyer, the buyer must pay on or before the agreed-upon payment date, or within 15 days of accepting the goods and services from the MSME or SCI registered business.
If a buyer delays payment for more than 45 days after accepting the products or services, the buyer is responsible for compound interest as well as monthly interest on the agreed-upon sum. The interest rate is three times the official rate of the Reserve Bank of India.
- Policy Restrictions on the Manufacturing and Production Sector: One of the major policy initiatives for promoting this text-center industry has been the statutory reservation of articles for exclusive manufacture in the SSI sector, as provided for in the Industries (Development and Regulation) Act, 1951.
- Reimbursement for ISO Certification fees: To support MSMEs’ attainment of standards and certifications in order to improve their performance across sectors.
- Aids in the Obtainment of Government Tenders
- MSME Incubation Program
- MSME Market Development Assistance Program
- Patent Registration Subsidy
- Defend Against Postponed Payments
- Innovative Startups are eligible for a tax exemption of 100%.
- The Prime Minister has a plan to create jobs for small and medium-sized businesses.
The following is the procedure for applying for MSME registration:
Step 1: Go to the website for ‘Udyam Registration.’
Step 2: Click ‘For New Entrepreneurs who are not yet registered as MSME or those with EM-II,’ then ‘For New Entrepreneurs who are not yet registered as MSME,’ and then ‘For New Entrepreneurs who are not yet registered as MSME,
Step 3: Click ‘Validate and Generate OTP’ after entering your Aadhar No. and Name (as per Aadhar). An OTP has been sent to the mobile phone associated with your Aadhaar number. After entering the OTP, click ‘Validate.’
Step 4: Choose a ‘Type of Organization.’
Step 5: Fill in the Pan Number
Step 6: PAN Validate should be selected.
Step 7: In the field Have you filed it for the previous year 19-20, select the relevant ‘Yes or No’ as the case may be.
Step 8: Select ‘YES’ if you have a GSTIN, otherwise ‘NO’.
Step 9: The name of the business will be filled in automatically.
Step 10: Then type in your phone number. Also, the company’s email address.
Suggested Read: Udyam Certificate Print