Get MSME Registration online at lowest price in India. Apply for Udyog Aadhar Online Registration with Filecrat and get Government scheme benefits.
MSME Registration is not compulsory but it is always advised to get it registered to avail benefits from Central or State Government, banks and also income tax.
MSME stands for Micro, Small & Medium Enterprises along with any venture that falls under the classifications of MSME. MSME establishments are the very important for the Indian economy. Both Central and State Government provide various sponsorship schemes.
An “enterprise” is defined as ‘any industrial undertaking or a business concern or any other establishment engaged in the manufacture or production of goods, in any manner specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 or engaged in providing or rendering of any service or services.
MSME is classified into 2 categories:
- Manufacturing Enterprises: Manufacturing enterprises are basically those industries which are involved in manufacture or production of goods pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951. Manufacturing Enterprises are referred to investment in Plant & Machinery.
- Service Enterprises: Service enterprises are basically those which are engaged in providing or rendering of services. These are defined in terms of investment in equipment.
Identification Criteria for MSMEs
- Micro: Investment should not exceed twenty-five lakh rupees.
- Small- Investment should not be less than twenty-five lakh rupees but does exceed five Cr. rupees.
- Medium- Investment should not be less than five Cr. rupees but does exceed ten Cr. rupees.
- Micro: Investment in equipment should not exceed ten lakh rupees.
- Small: Investment should not be less than ten lakh rupees but does exceed two Cr. rupees
- Medium: Investment should not be less than two Cr. rupees but does exceed five Cr. rupees.
In the current extreme time of pandemic Covid-19, Finance Minister of India on May 13, 2020 has announced a new economical cap by doing away with different identification criteria for both manufacturing and service sectors. The new common cap at present for both manufacturing and service sectors is as follows:
- Micro: When the investment is less than INR 1 Cr. and the annual turnover is less than 5 Cr.
- Small: When the investment is more than INR 1 Cr. but less than 10 Cr. and the annual turnover is more than INR 5 Cr. but less than 50 Cr.
- Medium: When the investment is more than INR 10 Cr. but less than 20 Cr. and the annual turnover is more than INR 50 Cr. but less than 100 Cr.
Forms of MSME
A MSME can be in any of the following forms:
Benefits & Advantages of MSME Registration
- Easy finance availability from Banks with low interest rate and without collateral requirement
- It provides preference in procuring Government tenders
- Concession in electricity bills
- Reservation policies for manufacturing/ production through conciliation and arbitration
- Reimbursement of expenses incurred in ISO Certification
- Benefit of MSME special schemes of banks
- Benefit of special concession plans on patents and other IPR registrations
- Support of Central & State governments through several schemes
- Legal status to the establishment which will help in protection against any delay in payment from buyers and also arises the right of interest on delayed payment
Video on Udyam Registration - New MSME Classification
MSME Registration earlier known as "Udyog Aadhaar" will now be known as "Udyam Registration" with effect from 1st July 2020
- Filing of MSME Registration Form
- Udyog Aadhaar Registration Certificate
- Aadhaar card
- MOA (Memorandum of Association)/ AOA (Articles of Association)
- Partnership deed
- PAN number of the business
- Bank account details
- Documents supporting the existence of business activity
- Investment details
- Address of the business:
For self-owned premise: Lease deed, property tax receipt, possession letter, allotment letter, etc.
For rented premise: NOC from the landlord, rent receipts, utility bills or document
There is no registration fee for MSME certificate or Udyog Aadhaar Certificate
MSME registration helps to avail the benefits provided by the government to micro, small and medium enterprises.
Various schemes launched by the government are following:
- Women entrepreneurship
- Udyog Aadhaar memorandum scheme
- Zero defect zero effect
- Grievance monitoring system
- Credit linked capital subsidy scheme
HOW FILECRAT WORKS
With over 100+ offerings, we are here for all your filing needs
PREPARE AND REVIEW
We collect information from you and draft documents
Finalized document within the agreed turnaround time and you’re done.