MSME Registration Process | Udyog Aadhaar

What is MSME?

MSME is the short-hand for Micro, Small and Medium Enterprises. It is unanimously believed that MSME industries are the backbone of the economy. This is especially true for developing countries like ours. MSME industries are believed to contribute 45% of India’s total industrial employment, as well as 50% of total exports and 95% of all industrial units. Furthermore, over 6000 kinds of product manufacturing occur in MSME industries. Hence, the growth of MSME industries results in the growth of the country’s economy. Furthermore, MSME registration process is now completely free in our country. It is now also synonymous with having a Udyog Aadhaar registration.

Whats are the benefits of MSME registration?

• Firstly, MSME registration leads to much lower interest rates for bank loans, in comparison to regular loans.
• MSME registration process offers several tax rebates also.
• It allows credit for the minimum alternate tax to extend up to 15 years rather than 10 years.
• Multiple government tenders are made available only to MSME industries.
• Access to credit is quite easy also.
• Costs of getting patents or industry set up decreases due to the several rebates given.
• MSME industries get a higher preference for government licenses and certifications also.
• A one-time settlement fee for non-paid amounts is also available.

Some notable MSME government schemes:

1. Udyog Aadhaar

Aadhaar is a 12 digit unique identification number for all citizens of the country. Udyog Aadhaar makes Aadhaar card registration compulsory. This scheme thus provides the benefits of getting easy loans, credit and subsidies from the government.

2. Zero Defect Zero Effect

This scheme encourages exporters to adhere to certain standards for exporting goods out of India. If goods exported from India are not returned due to quality issues, then some rebates and concessions are provided.

3. Quality Management Standards & Quality Technology Tools:

This scheme provides activities for MSMEs to refine the business for new technology. Hence, registering in this scheme gives MSMEs the opportunity to learn through campaigns, seminars and various activities. Thus, they help in implementing a quality standard of products.

4. Grievance System

This scheme addresses the complaints of MSME owners. Hence, owners can register their complaints as well as check the status of their complaints. They can also reopen their complaints if the resolution is no satisfactory.

5. Incubation

Under this scheme, the government can fund up to 80% of a project if the ideas get approved by them. Thus this scheme promotes new ideas and innovations by business owners.

6. Credit Linked Capital Subsidy Scheme

Under this scheme, the government provides new technology to MSMEs to replace their old and replete technology. MSMEs get a capital subsidy to upgrade themselves and they can also directly approach banks for these subsidies.

7. Women Entrepreneurship

This scheme is directed only towards women though who want to start their own business. They can avail help in capital, training, counselling and delivery techniques from the government. Thus this will help them to expand and grow their business.

Steps for MSME registration process:

• To be eligible for MSME, your business has to have under Rs 10 crore investment in the manufacturing sector and under Rs 5 crore investment in the service sector for plant and machinery.
• Open Google and search for udyogaadhaar.gov.in

• Scroll down to fill in your Aadhaar Number and Name of Entrepreneur. Furthermore, for sole proprietorship, enter the business owner’s name, or for company enter the director’s name or for partnership enter the partner’s name. Give the same person’s Aadhaar number as well.
• Click on the checkbox.
• Next, click on Validate & Generate OTP

• Your Aadhaar registered mobile number will receive an OTP. Fill that in here and click on Validate.
• Doing this will give you access to the MSME registration form.
• Next, continue with the MSME registration process by filling in the following details:
  • Social category
  • Gender
  • Physically handicapped
  • Name of enterprise
  • Type of organization
  • PAN number
  • Location of plant – you can give the office address if there is no plant address. You can also fill in multiple plant addresses by clicking on Add More Plant.
  • Official address – where you want to receive all official correspondence
  • Date of commencement – starting date of the business
  • Previous registration number – for Udyog Aadhaar, if any
  • Bank details
  • Major activity of unit – either manufacturing or services
  • NIC code for activities – either manufacturing or services, explain by choosing from the drop-down lists for NIC 2, 4 and 5 Digit Code. Click on Add Activity as well as add multiple activities by clicking on Add More Activities.
  • Persons employed – number of employees as on date of registration
  • Investment – will be in lakhs, and the minimum amount has to be 1 lakh
  • District industry centre – choose your city from the drop-down list
  • Click on the checkbox for declaration.
  • Next, click on Submit
• Click OK on the prompt askig if you are sure.

• You will receive another OTP on your mobile number. Fill that in along with the verification code and click on Final Submit.

• This will reveal your Udyog Aadhaar form. You can print this by clicking on Print below.

• Below this is the option to see your Udyog Aadhaar Registration Certificate.
• Click on Print to reveal your Udyog Aadhaar Registration certificate.
• Both of these forms are important.

Watch our step by step tutorial of this MSME registration process below.

Also read: EPF Amendments Bill, 2019 | Good or Bad News?

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