MSME or Udyog Aadhaar Registration
Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy. MSMEs not only play a crucial role in providing large employment opportunities but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country.MSMEs need assistance and help from the Government as they are not equipped with technology and resources like big companies. Hence, the government provides schemes, incentives and rebates to this sector of the economy.
Salient Features of Udyog Aadhaar
- Online Registration
- It can be filed by self-declaration through the details of the enterprise
- One can file more than one Udyog Aadhaar with same Aadhaar Number
- No Fees for filing
- Once filled and uploaded, the registration number will be thus, received
Benefits of Udyog Aadhaar
- After registration with MSME, the micro, small or the medium enterprise will be eligible for the government related scheme benefits such as easy loan, low interest interests, without guarantee loan; etc.
- The MSME registered enterprises are offered financial support from the Government to participate in foreign expos
- The enterprise is also entitled to receive Government subsidies
Registration Process for MSME
- PAN cards, Identity and Address proofs of the Proprietor / Partners / Directors needs to be submitted. Private Limited Companies must submit the MOA and AOA, Form 18, Form 32 and the Incorporation Certificate, while Partnership firms must submit the Partnership Agreement.
- The Rental Agreement for the Business Address, if rented, with the Electricity Bill.
- File the application with the relevant state office. Few additional documents may be needed for submission at this stage, as the process differs from state to state. Certain states require MSMEs to produce Sale Bills of Machinery and Municipal clearance.
Frequently Asked Questions
What is an MSME Registration?
The government of India provides several benefits to small organizations, such as easy loan approval, cheaper credit, income tax benefits and so on. These benefits can also be availed if organizations get an MSME registration. This registration is quite simple and easy. MSME Registration was earlier known as Small scale industries (SSI) Registration.
Is MSME Registration Compulsory?
The MSME Registration process is completely voluntary. Entrepreneurs and businessmen usually register in order to utilize the benefits offered under it.
Who are eligible for applying for MSME Registration?
Any business owner or entrepreneur with a valid Aadhaar Number is eligible for availing Micro, Small & Medium Enterprise Registration.
Why do I need to apply before starting my Business?
Before your business commences, you will have to apply for Provisional MSME registration online. With the PRC license, you will be able to obtain working capital and term loans to kick-start your business.
What is the validity of PRC or Provisional Registration Certification?
The PRC is valid for 5 years. In case your unit is not operational at the end of the 5th year, you can re-apply. If your business is operational, you can apply for the Permanent License.
Will I get a physical copy of the Certificate?
No, the government believes in paperless work.
How is the value of machinery and plant computed for MSME Registration?
When it comes to computing the value of your machinery and plant, we only take into account the original amount according to the MSME Registration online.
How can I acquire a loan from a Bank?
Banks and financial institutions have created special schemes for MSMEs. The likelihood of your loan getting sanctioned is high while the rate of interest will be low. After MSME Registration, you will also experience a preferential treatment if you delay repayment.
What benefits does the state and central government offer to MSMEs?
Enterprises that have gone through the MSME registration process and acquired a certificate are highly preferred by state and central government. Sale tax exemption, exception from certain direct taxes, subsidy on taxes and power, etc. can be availed by MSMEs.