MSME stands for micro small and medium enterprises which are the cornerstone for any developing country. To help and advance MSMEs, the Government of India through different sponsorships, plans and incentives advance MSMEs through the MSMED Act. To profit, the advantages under the MSMED Act from the Central or State Government and the Banking Sector, Udyog Aadhaar or MSME Registration is required.
What are Micro, Small and medium enterprises (MSME)?
Micro, small and medium enterprises are one of the important pillars in developing countries like India. The Government of India has presented MSME or Micro, Small, and Medium Enterprises in concurrence with Micro, Small and Medium Enterprises Development (MSMED) Act of 2006. These ventures basically occupied with the creation, assembling, handling, or safeguarding of products and commodities.
MSMEs are a significant sector for the Indian economy and have contributed colossally to the country’s financial turn of events. It creates business openings as well as works inseparably towards the advancement of the country’s regressive and rural regions.
A proposition was made to rethink MSMEs by the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2018, to arrange them as manufacturing or service providing enterprises, in view of their yearly turnover.
All enterprises with annual turnover of five crore are Micro enterprises, all enterprises with annual turnover of five to seventy five crore are called small enterprises and all enterprises with annual turnover of seventy five to two hundred fifty crore are called as medium enterprises.
Who is eligible for MSME registration?
Only those enterprises mentioned under the MSMED Act, 2006 can apply for MSME Registration. According to the Act,
Enterprises engaged in manufacturing of goods and commodities:
Any micro enterprises with investment in Plant and Machinery not exceeding 25 lakhs can register.
Any small enterprise with investment in plant and machinery not exceeding five crore but not less than twenty five lakhs can register
Any medium enterprises with investment in plant and machinery not exceeding ten crores but not less than five crore can register.
Enterprises engaged in rendering services:
Any micro enterprise with investment towards equipment not exceeding ten lakhs can register
Any small enterprise with investment towards equipment not exceeding two crores but not less than ten lakhs can register
Any medium enterprises with investment towards equipment not exceeding five crore and not less than two crore can register.
Procedure for MSME Registration
Notably, micro, small and medium enterprises are not mandatorily required to be registered under the MSMD Act, but the enterprises should get themselves registered to avail benefits of schemes, incentives and subsidies provided by the government of India. Below are the steps for MSME registration:
Visit government portal udyamregistration.gov.in
Fill application form with information relevant
Enter personal details like name address PAN bank account details etc.
Upload a photo
The official appointed will review the application and in case of any disparity will ask the individual to rectify it as soon as possible.
After the MSME registration is successful, a digital MSME certificate will be provided.
What is Udyog Aadhaar?
Udyog Aadhaar is furnished as an acknowledgment certificate alongside an unique number. Outstandingly, Udyog Aadhaar certifies SMEs. The principle rationale in dispatching this facility is to let the entrepreneurs get most advantages of the government schemes. To profit benefits, the proprietor, owner, or director of the business should give their 12-digit Aadhaar number. In addition, the business ought to likewise have a MSME registration certificate.
The Udyog Aadhaar Registration was started to simplify the MSME or SSI registration. Enterprises enlisted with Udyog Aadhaar became qualified to get the advantages of a few government plans like subsidies, simple credit endorsements and so forth.
As of now, the ventures or enterprises having Udyog Aadhaar Registration need to move to Udyam Registration to acquire the advantages given to MSME by 31.12.2021. Assuming that the entrepreneurs don’t relocate to Udyam Registration, then, at that point, their UAM won’t be legitimate and they need to re-register under Udyam Portal for acquiring the advantages given to MSME.
Who can register for Udyog Aadhaar?
All businesses like Hindu Undivided Family, One Person Company, Proprietorship, Partnership Firm, Limited Company, Limited Liability Company, Private Limited Company, Production Company, Co-operative Societies, and any other association can apply for Udyog Aadhaar registration. But, they should also meet all the criteria for micro, small and medium enterprises as mentioned under the MSMED Act.
Procedure for Udyog Aadhaar Registration
Below are the steps for Udyog Aadhaar Registration:
Visit the government portal
Self certify the business by entering details about the business, Aadhaar number, bank account details etc.
After submission of form, an Udyog Aadhaar Certificate will be mailed on the email id the individual has entered.
The certificate will contain unique Udyog Aadhaar Number.
Difference between MSME registration and Udyog Aadhaar
All things considered, MSME registration and Udyog Aadhaar Registration both are comparable yet unique. Udyog Aadhaar is only a simple method of getting MSME registration. Udyog Aadhaar Registration is a web-based technique by which a MSME can get the 12-digit Udyog Aadhaar Number. Furthermore, later go for MSME registration. Hence, one can say that both are unique. In any case, Udyog Aadhaar registration is the better approach for getting MSME registration. For an enterprise to get maximum benefits, one should get both Udyog Aadhaar and MSME registration done.
Across the globe, MSMEs are acknowledged as a method for monetary development and for advancing a fair turn of events. They are known to create the most elevated pace of development in the economy. MSMEs have driven India higher than ever through prerequisites of the low venture, adaptable tasks, and the ability to foster suitable local innovation. ‘Atma Nirbhar Bharat Abhiyan’ or the Self-Reliant India Scheme of 2020 by the Government of India has given another definition for MSMEs.
The Indian MSME area offers quiet help to the public economy and goes about as a guard against worldwide financial shock and afflictions. Subsequently, we can say that India is impelling towards a hearty worldwide economy through a quiet revolution controlled by MSMEs.
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