Udyam Registration (MSME Registration)
MSME registration also known as Udyam Registration recognizes certain business enterprises as micro, small and medium enterprises under MSME Act and helps them to avail various benefits and subsidies under government programs and schemes.
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What is MSME Registration?
MSME stands for micro, small, and medium enterprises and all the businesses or enterprise that falls under these categories are considered to be MSME. The MSME sector has emerged as a dynamic sector of the Indian economy over the last few decades. It contributes enormously to the socio-economic development of the country.
Further, it has a large share of jobs, production, and exports. The primary responsibility for the promotion and development of MSMEs is of the State Governments. However, the Government of India supplements the efforts of the State Governments through various initiatives.
Moreover, an MSME registered under the Micro, Small, and Medium Enterprises (MSME) Development Act 2006 can avail of various benefits as provided by Government and other Regulatory Bodies. It can get bank loans at a cheaper rate, tax benefits, preference in the tender stage, subsidies, and access to various schemes and incentives of the government. A business entity that has registered itself under MSME Act is entitled to avail of all these benefits.
Furthermore, MSME Registration (Udyam Registration) process is completely online but you will require a professional to fill up your application and get it approved by the department. It is a voluntary registration for the businesses but it is always suggested in order to have Government backing for the enterprises.
As a result, numerous medium and small-scale industries are stepping forward to register under Udyam Registration.
HOW IS MSME CLASSIFIED?
An enterprise shall be classified as a micro, small, or medium enterprise on the basis of the below-mentioned criteria :
Micro Enterprises
Micro Enterprises includes all Manufacturing and Service rendering Enterprises whose:
- Investment in Plant and Machinery or Equipment – does not exceed Rs. 1 crore and
- Annual Turnover – does not exceed 5 crores
Small Enterprises
Small Enterprises include all Manufacturing and Service rendering Enterprises whose:
- Investment in Plant and Machinery or Equipment – does not exceed Rs. 10 crores and
- Annual Turnover – does not exceed 50 crores
Medium Enterprises
Medium Enterprises include all Manufacturing and Service rendering Enterprises whose:
- Investment in Plant and Machinery or Equipment – does not exceed Rs. 50 crore and,
- Annual Turnover – does not exceed Rs. 250 crores
MSME Registration Eligibility
- An Individual Person / Proprietorship Firm
- Hindu Undivided Family (HUF)
- Partnership Firm
- Limited Liability Partnership
- Company
- Trust
- Society
- Association of Persons / Body of Individuals
- Self-help Group / NGO’s
- Others
MSME Registration Benefits
Minimum MSME Registration Requirements
What Is Included In Our Udyam Registration Package?
MSME Registration Process
Documents Required for Udyam/MSME Registration Process
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