MSME stands for Ministry Of Micro, Small, and Medium Enterprises. It is the backbone of the economy in many developed countries, such as India. In India, it is also known as “THE Development Driver.”
The amendment act ALLOCATION OF BUSINESS RULES,1961, established the Ministry of MSME on May 9th, 2007. The Indian government unveiled the Udyam Registration Platform, a new udyam registration portal, on July 1, 2020. It was previously referred to as the Udyog Aadhar Registration Portal. You may use our Udyam registration portal to register your manufacturing or service sector company in India.
MSME Enterprise precision:
- MICRO UNITS are companies with investments of up to Rs. 1 crore and a turnover of less than Rs. 10 crores.
- SMALL UNITS are businesses with investments of up to Rs. 10 crores and a turnover of less than Rs. 50 crore.
- MEDIUM UNITS are companies with investments of up to Rs. 50 crore and a turnover of less than Rs. 250 crore.
Benefits of MSME:
Loans without security: The government has implemented a number of policies for MSME/SSI that enable them to obtain credit without having to put up any collateral. The initiative to provide collateral-free loans is pursued by the Government of India, SIDBI (Small Industries Development Bank of India), and the Ministry of Micro, Small, and Medium Enterprises under the name The Credit Guarantee Trust Future.
Concession on Electricity: Businesses enrolled under the MSME Act will get a discount on their energy bills, which is one of the most basic udyam registration advantages.
Reimbursement of ISO Certification Costs: An MSME that has been licenced will claim reimbursement for expenditures related to ISO certification (International organisation of standardization).
Protection against Delayed Payments: The government has stepped in to assist by offering reimbursement insurance. Currently, MSME allows company owners and companies to receive interest on fees that have been delayed from customers.
Interest Rate Allowance and Overdraft Facility: As part of the credit guarantee trust programme, companies who are licenced under the MSME act are entitled to earn a 1% discount on their overdraft. It can differ from one bank to the next.
MSME REGISTRATION PROCESS & ITS BENEFITS
Small and medium-sized businesses (SMBs) are the backbone of every economy and an engine of global growth, encouraging fair production for all. As a result, the Government of India supports and promotes MSMEs through the MSMED Act, which includes various subsidies, programmes, and incentives. udyam Registration is required to receive benefits from the Central or State Governments, as well as from the Banking Sector, under the MSMED Act. This blog will assist entrepreneurs in understanding the udyam Registration Benefits. On our website, you can get other facilities regarding Udyam Registration like if you have an old udyog certificate then you can update your certificate easily by using our Udyam Registration Update portal also you can print your certificate from our Portal and if you have new registration then you can easily track your application and many more.
Some Benefits are:
- Complementary Banks offer no-interest loans.
- Patent Registration Subsidy.
- Exemption from Overdraft Interest Rates.
- Eligibility for Industrial Promotion Subsidies.
- Against Payments Security (Delayed Payments).
- Electricity bills are lower.
- Costs of ISO Certification Being reimbursed.
- Special attention is paid to foreign trade shows.
- Under Direct Tax Laws, Stamp Duty and Registration Fees are Waived.
- Tender Access.
MSME REGISTRATION PROCESS:
simply follow the steps outlined below:
Step 1: For registration, visit our udyam Registration.
Step 2: Fill up the udyam Registration form by completing all required fields of the application form.
Step 3: Submit your MSME application and make an online payment for your application.
Step 4: Your udyam Registration application will be processed by one of our executives.
Step 5: You will receive the certificate at your registered email address within 1-2 working hours.
Documents Required during MSME Registration Process:
- Your Aadhaar Card Number.
- Only the PAN Card and GSTIN are required for company registration.
MSMEs include retail and wholesale trades
The retail and wholesale trades were excluded from the udyam ambit. udyam has issued an order under the amended rules to classify retail and wholesale trade as MSME and to provide them with priority sector financing under RBI criteria. 2.5 crore retail and wholesale traders would profit from the revised guidelines.
The government declares retail and wholesale trades to be MSMEs.
Shri Nitin Gadkari, Minister of MSME, Road Transport and Highways, today announced updated MSMEs rules, which include retail and wholesale trades as MSMEs. In a tweet, he stated, “We are dedicated to developing udyam and making them engines for economic growth under the leadership of PM Shri Narendra Modi Ji.” The updated guidelines, according to Shri Gadkari, would help 2.5 crore retail and wholesale traders. According to him, retail and wholesale trade were previously excluded from the udyam program however, under the new rules, retail and wholesale trade will now be eligible for priority sector financing under the RBI guidelines. Retail and wholesale trades will be able to register on the Udyam Registration Portal as a result of the updated criteria.
MSMED Act, 2006: Activities (NIC code) for Udyam Registration -Addition of Retail and Wholesale Trade-
- This Ministry’s Office memorandum on the topic of “Activities (NIC codes) not included under MSMED Act, 2006 for Udyog Aadhaar Memorandum (UAM) registration” Certain actions were not allowed to be registered on the UAM Portal. For Udyam Registration, this Office memorandum was further approved. Certain modifications were made, clarifying that NIC codes 45, 46, and 47, as well as the activities associated with these NIC codes, are not authorised for registration in the Udyam Registration Portal.
- After receiving several submissions, the government decided to classify retail and wholesale transactions as MSMEs, allowing them to register on the Udyam Registration Portal. Benefits to retail and wholesale trade MSMEs, on the other hand, will be limited to Priority Sector Lending.
- As a result, the following are the new activities that are eligible under NIC Codes 45, 46, and 47:
- 45 Motor car and motorbike wholesale and retail commerce, as well as repair
- 46 Except for motor cars and motorcycles, wholesale trading
- 47 Except for motor vehicles and motorcycles, retail trade
- The aforementioned three NIC Codes, as well as the activities listed against them, are eligible for Udyam Registration.
- Enterprises that have a Udyog Aadhaar Memorandum (UAM) under one of the following three NIC Codes can now migrate to the Udyam Registration Portal or file a new Udyam Registration.