MSME Registration 2021 | Udyam | Process, Document Required
About MSME Registration
MSME Stands for Micro, Small and Medium Enterprises it facilitates development & promotion of enterprises through various benefits & schemes. Small enterprises play an essential role in improving the economy of any country. To encourage new and existing companies/businesses, the Government of India has launched numerous programs to help small and medium-sized enterprises to grow. To take advantage of all those beneficial schemes, you need to obtain your MSME registration. The MSME registration is also known as the Udyam registration.
Eligibility for MSME Registration
# Micro MSME Enterprises:- It is an enterprise whose investment is < INR 1 crore and annual turnover is < INR 5 crores.
# Small MSME Enterprises:- It is an enterprise whose investment is < INR 10 crore and annual turnover is < INR 50 crores.
# Medium MSME Enterprises:- It is an enterprise whose investment < INR 20 crore and annual turnover is < INR 200 crores.
When to Register under MSME?
If someone wants to avail benefits from Central or State Government and the Banking Sector then MSME Registration is required.
Who Monitors MSME Registration?
It is governed by MSMED Act 2006 in India under the Ministry of Micro, Small and Medium Enterprises.
How MSME Registration Helps My Business?
1. Low-Interest rate- All banks and other financial institutions recognize MSMEs and have created special schemes for them. MSME’s get the privilege of lower interest rate on business loans.
2. Relaxation in Trademark Government Fees-Government has given relaxation in Government fees of the trademark to MSME registered entities. The fee shall be ₹ 4500/- for small enterprises despite trademark fee for enterprises other than MSME’s is ₹ 9000/-.
3. Credit Support Schemes-Government of India runs several schemes to provide financial assistance to MSME for their business.
4. Tender Eligibility-There is a certain quota reserved for MSME Registered Entity in Government tender allotment.
5. No delayed payment- If an MSME entity has made any sale then the buyer has to pay to the MSME’s entity within the 45 days from the date of delivery of product or services.
6. Easy loan in 59 minutes – Recently, the Government has announced that all MSMEs having MSME Registraton and GST registration will be granted easy up to ₹ 5 crores within 59 minutes. This scheme has been discussed below in detail.
Special Reliefs for MSME Amid COVID-19
Due to the COVID-19 crisis, the Government has introduced the Atmanirbhar Bharat Relief Package. Under this Government has given certain reliefs to Indian MSMEs:-
1. ₹3 lakh crores Collateral free Automatic Loans to be provided to MSME Businesses, for a period of 4 years.
2. ₹20,000 crores Subordinate Loan to the MSMEs.
3. ₹50,000 crores equity infusion to be done through MSME “Fund of Funds”.
Difference between MSME Regstration & Udhyam Registraton
1. There is a myth that MSME registraton and Udhyam Regstration are two different registrations. The MSME Regstration is regulated by the ministry of micro, small and medium enterprises to protect MSME rights and ensure them additional benefits and facilities over large enterprises.
2. Later on, a better version of MSME Registration was launched with the name of Udhyam Registration for MSMEs with different eligibility criteria.
3. In a nutshell, the purpose of Udyam registration and MSME Registation is the same for development & promotion of MSME enterprises.
MSME Registration Process
- Choose Package and Pay online with different payments modes available.
- On placing order, your task is assigned to one of our dedicated professionals.
- Our professional will check whether an active mobile number is linked to Aadhar card.
- If Aadhar card and Mobile Number are linked, we will submit your application.
- On successful submission provide you MSME Certificate over the Email.
Documents Required for MSME Registration
1. PAN Card
2. Aadhar Card
3. Complete Postal Address with District and PIN