Udyog Aadhar Registration (MSME)
What is Udyam Registration?
It is a twelve digit Unique Identification Number provided to the Small and Medium size Enterprises by Ministry of Micro, Small and Medium Enterprises, Government of India.
What is Micro, Small and Medium Enterprises?
MSMED Act 2006 defines Micro, Small and Medium Enterprises on the basis of capital investment made in plant and machinery, excluding investments in land and building. MSME plays a vital role in the economic development of the country as it provides employment on a large scale at lower capital cost than larger scale industries.
To encourage many Small and Medium size enterprises, various Schemes and incentives are been provided by the Government. The Government do not charge any fees for MSME registration but to avail the various schemes, the enterprises needs to get themselves registered under Udyam Registration.
Who can get themselves registered under MSME?
- Service provider
|Type of Enterprise||Investment in Plant and Machinery||Turnover|
|Mirco||Does not exceed one crore rupees||Does not exceed five crore rupees|
|Small||Does not exceed ten crore rupees||Does not exceed fifty crore rupees; and|
|Medium||Does not exceed fifty crore rupees||Does not exceed two hundred and fifty crore rupees.|
- Easy and Cheaper Bank Loans :- Once a business is registered under MSME , bank provide collateral-free loans where the property is not pledged with bank.
- Exclusive Government tenders :- The government gives special preferences in buying from micro and small business through Government tenders.
- 50% subsidy in Patent and Trademark Registration :- The government fees which is required to be paid for Trademark and Patent Registrations are reduced to half if a business is registered under MSME.
- Electricity Bill concession :- The businesses under MSME registration can avail concession in Electricity bill payments by showing Registration certificate to Electricity Department.
- Tax allowances :- The Businesses registered under MSME gets Income tax and Capital tax subsidies from the Government.Reduced Interest rates :- The bank provides 1% exemption on Interest rates on Overdrafts.
- Aadhaar card
- Pan card
- Bank Account details.