What Is The New MSME Registration Process?
MSME stands for Ministry of Micro, Small and Medium Enterprises. The government of India has taken initiatives to promote the growth of MSMEs across India. Thus, they are introducing various types of schemes for the betterment of businesses. MSME registration is one of the schemes that help a business in many ways.
However, before you embrace the scheme’s various kinds of advantages, you should understand the MSME registration process.
Once you successfully complete the MSME registration online or offline, you will receive an instant Udyog Aadhaar certificate that will help to take advantage of different government schemes for businesses.
MSME Udyam Registration Certificate
The government of India developed the MSMED Act in 2006 in terms of increasing the growth of Micro, Small, and Medium enterprises.
Each service and manufacturing business units with less than Rs. 250 Crore and Plant, Machinery, and equipment return on investments according to the income tax Act less than Rs. 50 Crore can receive benefits from MSMED.
The Udyam Registration process has been designed to provide benefits to Micro, small and medium enterprises from the state government, central government, banking, and financial institutions.
According to MSME, Udyam Registration could not be used as a business of address proofs unless in significant cases. Any business is eligible to apply for Udyam registration.
Nevertheless, you need to complete a certain process by filling in the application form.
The MSME registration requires personal details, business details, and much other information to proceed further to obtain Udyam registration online.
Now, let’s focus on the Benefits of Udyam Registration that will definitely help you to expand your business growth.
The MSME registration online provides many benefits from central and state government as mentioned below;
Advantages from Central Government
- Financial subsidies
- Priority lending from banks in specific conditions
- Tender selection/ Supplier selection
- Additional special benefits in terms of government decisions
- Nationalized and private banks in India provide 100% collateral-free loans under the Credit Guarantee Scheme (CGTMSE) on the basis of lifetime valid Udyog Aadhar Registration.
- Micro and small businesses get the government notified Mudra loan up to Rs.10 Lacs at a low rate of interest.
- Under the Capital linked Subsidy Scheme, eligible plants can receive subsidies up to Rs.15Lacs at a 15 % rate for technical upgradation.
- The TEQUP schemes add a capital subsidy of 25% of the project cost to Rs.10 Lacs to the registered MSME units.
- The Government of India will provide 25 % of the project cost as a subsidy, and the remaining amount will be funded through a loan from SIDBI, Banks, and financial institutions.
- The patent registration for a business name is eligible to receive a 50% subsidy.
- Waiver in the security deposit option is available in government tenders and departments.
- Any industry registered with the Udyog Aadhar Department for import and export business receives Government support for marketing purposes as well.
Advantages from State Government
The state Government policy varies state to state
- Plant, Machinery, and building investments receive 10 to 20% of term loan.
- Reimbursement of interest subsidy provides savings from 5% to 9% of term loan.
- Reimbursement of CGTMSE fees charged for a term loan.
- Registered MSME units have an option to participate in international trade fairs.
- Electricity duty waiver for 5 years
- The department of MSME facilitates the training for Udyam Registered Units as well as Units receive assistance for technical and capital consultation for enhancement of the business.
- Food processing units and information technology development companies get Capital & interest subsidy.
Mandatory Requirement for Udyam Registration
In order to receive the above-stated benefits, each enterprise has to register under Udyam registration before March 31, 2021. The registration process is based on business activity, turnover, investments for plants, and Machinery.
The eligibility involves financial statements excluding the export of goods and services.
Micro enterprises are required to have less than Rs. 1 crore in investment and less than Rs. 5 crores for domestic turnover.
Small enterprises required to have Rs. 1 crore or above but less than Rs. 10 crores for the investment as well as 5 crores or above but less than Rs. 50 crore for domestic turnover.
Medium enterprises are required to have Rs. 10 crores or above but less than Rs. 50 crore for the investment as well as 50 crores or above but less than Rs. 250 crore for domestic turnover.
All in all, you need to accomplish the MSME registration online or offline to get the certificate and avail of the benefits from the state and central government.
Business Aadhar offers expert guidance for the registration process’s successful accomplishments without discrepancies to speed up the process. With experience and expertise, we are helping businesses to embrace the benefits of Udyam registration.
