We offer assistance in obtaining Udyog Aadhaar Registration/MSME New Registration, amending existing registrations, and other related services. The Micro, Small and Medium Enterprises Development Act, 2006 was enacted to promote and develop micro, small, and medium enterprises, enhance their competitiveness, and address related matters.
The Act classifies Micro, Small and Medium Enterprises (MSMEs) into two categories: Manufacturing Enterprises and Service Enterprises. Manufacturing Enterprises are those engaged in producing goods or products specified in the first schedule to the industries (Development and Regulation) Act, 1951, or those that use plant and machinery to add value to the final product with a distinct name, character or use. The classification of Manufacturing Enterprises is based on their investment in Plant and Machinery.
Service Enterprises, on the other hand, are those engaged in providing or rendering services, and their classification is based on their investment in equipment.
MSMEs can be registered as a proprietorship, partnership firm, Hindu Undivided Family, association of persons, cooperative society, company, or undertaking, among others.
The investment limit in plant and machinery or equipment for manufacturing or service enterprises is determined by the government and has been notified under S.O. 1642(E) dated 29-09-2006-.
Manufacturing Sector
Enterprises
Investment in Plant and Machinery
Micro Enterprises
Does not exceed 25 lakh rupees
Small Enterprises
More than 25 lakh rupees but does not exceed 5 crore rupees
Medium Enterprises
More than 5 crore rupees but does not exceed 10 crore rupees
Service Sector
Enterprises
Investment in Equipments
Micro Enterprises
Does not exceed 10 lakh rupees
Small Enterprises
More than 10 lakh rupees but does not exceed 2 crore rupees
Medium Enterprises
More than 2 crore rupees but does not exceed 5 crore rupees
Requirement of MSMED/ Udyog Aadhaar Registration
The Udyog Aadhaar, formerly known as MSME registration, is a 12-digit identification number issued by the Ministry of Micro, Small and Medium Enterprises (MSME) to small and medium enterprises in India, whether they are new or already established. While registration is not mandatory for micro or small enterprises engaged in manufacturing or rendering services, or for medium enterprises engaged in providing services, those that meet the qualifying criteria can obtain Udyog Aadhaar Registration. The registration does not require renewal and is valid for the lifetime of the enterprise. To simplify the registration process, the Ministry of MSME, in consultation with the National Board of MSMEs and the Advisory Committee, has developed a one-page self-declaration form. Through this form, enterprises can self-certify their existence, bank account details, promoter/owner’s Aadhaar details, and other basic information required. Once the form is submitted, the MSME can be issued a unique identifier, the Udyog Aadhaar Number, online.
Benefits of registering under MSME Act/ Udyog Aadhaar
Registering under the MSME Act or Udyog Aadhaar provides several benefits to micro, small, and medium enterprises, which are listed below:
- Priority lending: Banks are mandated to provide collateral-free credit at concessional interest rates to MSMEs. In addition, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) facilitates credit flow to the sector without requiring collaterals or third-party guarantees. A composite loan limit of up to Rs. 1 crore can be sanctioned by banks to enable MSME entrepreneurs to avail their working capital and term loan requirements through a single window. MSME borrowers are encouraged to get their credit rating done as it helps in credit pricing of loans taken from banks.
- Concessional government fees: MSMEs are eligible for a 50% concession on government fees for IP registrations, including trademarks and patents.
- Special consideration in trade fairs: Governments provide benefits to MSMEs for participating in national and international trade fairs organized by the MSME department.
- Preference in government tenders: MSME-certified enterprises are given preference in government tenders during the bid.
- Subsidies: MSMEs can avail subsidies for industrial promotion, concession in electricity bills, and reimbursement of expenses incurred for ISO registration, as per state government policies.
- Protection against delayed payment: The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, mandates payments to be made within 45 days by the buyers for goods and services supplied by MSME units. In case of delayed payment, buyers shall be liable to pay compound interest with monthly rests to the supplier on the amount. In case of disputes, the Micro and Small Enterprises Facilitation Council, constituted by the respective state government, can be approached. Banks have been advised to fix separate sub-limits within the overall limits for meeting payment obligations in respect of purchases from MSEs either on cash or bill basis, to ensure timely payments to MSMEs.
Documents required for Udyog Aadhaar Registration - Aadhaar of the Owner/Promoter
2.Category of applicant (General / Scheduled Tribe (ST)/ Scheduled Caste (SC) / Other Backward Castes (OBC)
3.Name of the Entity and its Registered Address (Name of the; Company /Proprietorship Concern/Firm/LLP etc.)
4.Type of organisation (Whether it is Company /Proprietorship Concern/Firm/LLP etc.) - Date of Commencement/Incorporation of Business Entity
- Bank Details including Account number, Bank Name, Branch and IFSC Code
- Key Activity of the business –Whether Service or Manufacturing
- National Industrial Classification code whether activity of the applicant falls
- Number of Persons employed
10.Total amount investment in terms of machinery and equipment by the business - Contact Number, Communication Address and Email ID