What is MSME Registration / Udyog Aadhaar?
MSME stands for Micro, small & medium enterprises. As per government, it is not mandatory to get registered under MSME or to go for MSME registration online but it is suggested that small & medium enterprises should go for it as it can provide you various benefits in the form of business set up, taxation, credit facilities, loans etc. Micro, small and medium enterprises involved in manufacturing or service area can obtain registration under MSME act.
Who should get Udyog Aadhaar Registration?
Any type of business entity can obtain Udyog Aadhaar registration online such as sole proprietors, Partnership firms, HUF’s, Public limited companies, Private limited companies, Limited Liability partnerships, One person companies, Co-operative societies, Production companies, any AOP’s, other undertakings etc.
In order to obtain MSME registration, there is a set specified criterion that a business entity needs to meet in order to classify themselves as Micro, small and medium enterprises. There is a lot of paper work you need to do at the time of starting a business and getting MSME or SSI registration through manual process. Therefore, it is advisable that you can now easily do MSME registration online and can obtain MSME certificate.
Now, Udyog Aadhaar registration/MSME registration is completely an online process and after registration you can avail various government benefits such as easy loan approvals, subsidies etc.
New Udyog Aadhaar replaces SSI / MSME Registration
As per the gazette notification from the government dated 18.09.2015, MSME registration process is replaced by new Udyog Aadhaar registration. New Udyog Aadhaar registration process is a very simple one page format as compared to the complex registration process used by the businesses before. Any individual having Aadhaar number can register for Udyog Aadhaar registration at UAM portal online. The following details are required at the time of registration –
- Owner’s name
- Enterprise name
- Organization type (Sole proprietorship, Partnership firm, HUF, Public limited company, Private limited company, LLP etc.)
- Social category (GEN/SC/ST/OBC)
- Date of commencement of business
- Postal address
- Bank details (Account number & IFSC code)
- NIC code
- DIC details
- Major activity (Manufacturing/Service)
- Previous registration details (If applicable)
- Total person employed
- Investment in Plant & Machinery equipment
Why Udyog Aadhaar registration?
Udyog Aadhaar registration provides various benefits to the entrepreneur’s in the form of subsidies like power, tax, bank benefits, quick loan approvals, interest on loan on preferential rates to MSME’s, sales tax exemption & excise tax exemption to the enterprises at their initial stages etc.
Benefits of MSME/Udyog Aadhaar Registration
Udyog Aadhaar registration is a very simple process by which an enterprise can easily obtain their MSME certificate online. Previously, you need to do lots of paperwork in order to obtain MSME registration. Now, the new online process is well-organized & systematized and providing enterprises with the maximum benefits. Hence, there are many benefits of obtaining Udyog Aadhaar registration which are as follows –
For most of the business tender applications, one of the desired eligibility criteria is MSME/SSI registration as many government tenders open only to MSME’s to promote small business participation.
Business registered as MSME/SSI will get multiple benefits from the government such as tax subsidies, Capital investment subsidies etc.
Interest rates offered to MSME registered businesses on loan is 1-1.5% cheaper than the normal interest rate.
In terms of govt. licenses and certifications, business registered under MSME/SSI has been given high preference and get fast approvals from state and govt. regulatory bodies.
As per mudra scheme by PM Modi, You can easily get loans without collaterals.
The MSME/SSI registered businesses receives various benefits such as cheaper electricity charges, VAT exemptions etc. Other business services like patents are also cheaper for MSME’s.
How Udyog Aadhaar has simplified the process of registration for MSME?
Introduction of Udyog Aadhaar has simplified the process of MSME registration and now it becomes easy for the enterprises to do Udyog Aadhaar registration online as compared to the previous process of MSME/SSI registration. Aadhaar Udyog registration simplifies the MSME registration process in the following ways –
- One page simple registration form.
- Multiple UAM’s can be filed.
- Free of cost.
- No supporting document required as it is a self-declaration.
- The framework provides revival & rehabilitation of MSME’S.
- Easy online process.
Classification of MSME
MSME’s are classified into three enterprises - Micro enterprises, Small enterprises and Medium enterprises. It is your total investment amount which differentiates your business between Micro, small and medium enterprises.
|Micro Enterprise||Upto Rs. 5 Crores|
|Small Enterprise||Rs. 5 Crores to Rs. 75 Crores|
|Medium Enterprise||Rs. 75 Crores to Rs. 250 Crores|
In case you are manufacturing or a service enterprise and having an investment of less than Rs.1 Crore and turnover of less than Rs.5 Crore, your enterprise will be considered as micro enterprise. Micro enterprises have less amount of capital in comparison to small & medium enterprises and less than 10 individuals to work for them.
In case you are manufacturing or a service enterprise and having an investment of less than Rs.10 Crore and turnover of less than Rs.50 Crore, your enterprise will be considered as small enterprise. Small enterprises have more amount of capital than micro enterprises but less amount of capital than medium enterprises. Sole proprietorship, small companies or small organizations are the perfect examples of small enterprises. A small enterprise workforce ranges between 10 individuals to 50 employees.
If you are manufacturing or a service enterprise and having an investment of less than Rs.20 Crore and turnover of less than Rs.100 Crore, your enterprise will be considered as medium enterprise. Medium enterprises have more amount of capital in comparison to micro and small enterprises. A medium enterprise comprises of less than 250 people and as enterprises progresses by earning more income, need of more capital and workers also arises to fulfil its business requirements.
Procedure for MSME/Udyog Aadhaar Registration
Every company has its own procedure for MSME/Udyog Aadhaar registration but FinacBooks makes it very easy for their clients. Obtaining quick complete information, document preparation, verification and fast approval process is what we believe in. There is no need of your Physical presence as everything will be done online.
Step by Step MSME/SSI Registrations Process are as follows
There are Two Types Udyog Aadhaar Registration Process
New Udyog Aadhaar Registration with Aadhaar
New Udyog Aadhaar Registration without Aadhaar
For the Aadhaar enrollment, a copy of the following documents are needed - Employee Photo identity card, PAN card, driving license, passport, Voter ID card or bank photo passbook. After following this procedure, you can easily continue your business with MSME/SSI certificate.
Eligibility for Udyog Aadhaar/ MSME Registration
The eligibility for Udyog Aadhaar/MSME registration depends upon the total investment made by the enterprise in plant & machinery under manufacturing sector or equipment under service sector. There is a limit specified in both manufacturing and service sector for micro, small and medium enterprises which are as follows -
|Industry||Manufacturing Sector||Service sector|
|Micro Enterprise||Investment upto Rs.25 lakhs in Plant & Machinery||Investment upto Rs.10 Lakhs in equipment|
|Small enterprise||Investment b/w Rs.25 Lakhs to Rs.5 Crores in Plant & Machinery||Investment b/w Rs10 Lakhs to Rs.5 Crores in equipment|
|Medium Enterprise||Investment b/w Rs.5 crores to Rs.10 crores in Plant & machinery||Investment b/w Rs. 2 crores to Rs.5 crores in equipment.|
Information Needed For MSME/ Udyog Aadhaar / SSI Registration
- Name of the Entrepreneur/Applicant – In order to obtain Udyog Aadhaar new registration, the first thing you need to do is enter your name as mentioned on Aadhaar card in MSME registration form.
- Aadhaar number – Enter your 12 digit Aadhaar card number issued by UIDAI.
- PAN card - Enter your PAN card number in the required field.
- Gender – Choose your gender – Male or Female
- Mobile number – Enter your registered mobile number in MSME registration form.
- E-mail ID – Enter your registered E-mail ID in the required field.
- Social category – Choose your social category among General/SC/ST/OBC.
- Physically handicapped – In case you are a physically handicapped person, you must choose the option of physically handicapped or disabled person in MSME registration form.
- Name of Enterprise – Enter the full name of your enterprise correctly. An applicant having more than one Enterprise can apply for multiple Udyog Aadhaar (One for each enterprise) using the same Aadhaar number. For ex – Enterprise 1 or Enterprise 2.
- Type of Organization – Enter the type of business or legal entity you are operating as a business (Sole proprietorship, Partnership firm, HUF, LLP, Public limited company, private limited company, Co-operatives, others)
- Date of commencement of business – Commencement date means the date on which you started your business operations.
- Plant location – Place where you are manufacturing something or a factory.
- Office Address – For better communication, kindly provide postal address of your business along with the contact number & E-mail Address.
- Bank Account number – Kindly provide your bank account number given on the Cheque book and passbook of the concerned bank.
- IFSC code – Kindly provide your IFSC code of the concerned bank (Given on the cheque book as well as passbook of the bank)
- Main business activity – Mention key area of your business activity such as manufacturing or service.
- NIC – The 2 digit code - You must enter your national industrial classification code mentioned in the National industrial classification handbook. A single applicant might select multiple NIC codes to include all of its activities.
- Number of employees – Details about number of employees employed by you in your enterprise
- Additional details about business – Kindly provide additional details related to your business (If applicable).
- Total investment made in Plant & Machinery – Kindly provide the total amount which you invested in your business in terms of Machinery & Equipment.
- Scanned Copy of Aadhaar card – Kindly provide a scanned copy of Aadhaar card. It should be clear enough and easy to read.
Current Account Opening
Current account opening is necessary for the business owners as there are lots of transactions they need to do on regular basis in order to run their business. It is a kind of deposit account that helps the business owners to do regular transactions continuously without any hassle. There are various benefits which businessmen can avail by making online current account –
- Customized features
- Unlimited transactions such as deposits & withdrawal transactions.
- Online banking services such as Internet & mobile banking.
- Overdraft Facility etc.
Now days, there are many banks which provide online current accounts for businessmen which are opened at zero balance in a quick time without any fees.
What is UAM (Udyog Aadhaar Memorandum)?
Udyog Aadhaar memorandum (UAM) is a simple registration form to prove MSME’s existence as well as mandatory details such as owner’s Aadhaar card number, Bank details and Personal details is provided at the time of filling form online. After filling & submitting the form, you will receive an acknowledgement on your registered E-mail ID containing the Udyog Aadhaar number which you can use as a reference to all your future communications in relation to Udyog Aadhaar registration. No supporting document is needed as it is a self-declaration form but it may be requested by the state or central authority as information proof in UAM registration form.
If any of the enterprise already filed for EMI-1 or EMI-2 or both or the current holder of small scale industry registration before introduction of MSME act 2006, there is no need to file Udyog Aadhaar memorandum (UAM). Enterprise can also file multiple UAM’s with the use of same Aadhaar number, if they desire to as there is no limitation on it.
Various Schemes for MSME in India
There are various MSME schemes launched by government of India to help MSME’s -
Udyog Aadhaar MemorandumAadhaar card is a mandatory requirement for all individuals who want to register under this scheme. After registering under this scheme, you can easily avail credit, loan facility as well as subsidies from the government. This process can be done both online & offline.
Quality management standards & quality technology toolsRegistering under this scheme will help MSME’s to understand and maintain the specified quality standards with the help of new technology. In this scheme, seminars as well as activities are conducted to tell businesses about the introduction of new technology in the market.
Zero defects Zero effectEnterprise involved in export of manufacturing goods must adhere to the standards specified so that the goods will not get rejected or sent back to India. In order to achieve this aim, zero defect zero effect scheme has been launched by the government of India. As per this scheme, if the goods are exported, it may get entitled for rebate & concession. This scheme also raises the level of quality in MSME sector.
IncubationIncubation is related to innovation. Under this scheme, government provides help to the innovators by implementing their new ideas, design or products. As per this scheme, government finance 75% to 80% of the project cost and helped in promoting new ideas, products, designs etc.
Grievance monitoring systemThis scheme has been launched by the government to address the complaints or grievances of the business owners. With the help of this scheme, you can easily view the status of your complaints and in case you are not satisfied with the outcome, you can reopen it too.
Credit linked capital subsidy schemeThis scheme has been launched by the government to provide new technology to replace their old & outdated innovative techniques. Micro, small & medium enterprises can avail this capital subsidy scheme by approaching banks directly. It also helps in upgrading business enterprises and provides better system to run your business.
Women entrepreneurshipThis scheme is especially launched by the government for those women who wants to start business of their own and help them in expanding and managing their businesses. Under this scheme, government main aim is to help women in establishing their business by providing capital, training, counselling & delivery techniques so that they can easily establish themselves in the business without any difficulty.
What Is Included In Our Package?
MSME Registration FAQ's
There are 2 methods by which owner can easily correct his or her details in Udyog Aadhaar –
- Online method – Visit the Udyog Aadhaar official website and update your details with the help of OTP received on your registered mobile number or E-mail ID.
- Offline method – Visit your nearest Udyog Aadhaar centre along with the required documents to update your Udyog Aadhaar details.
How FinacBooks help in Udyog Aadhaar/MSME Registration in India?
FinacBooks is a leading Indian portal providing accounting, finance & taxation services to small businesses. We are having more than 10 years of experience in helping individuals providing MSME/SSI/Udyog Aadhaar Registration at a least possible price. We will guide you through the entire process of Udyog Aadhaar/SSI/MSME Registration. To avail the best deals on MSME/Udyog Aadhaar Registration, kindly call us at 8800221252 or you can also e-mail us at email@example.com
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