MSME / SSI / Udyog aadhar registration in India

Udyam Registration is the new process of MSME/UDYOG AADHAAR Registration launched by the the Ministry of Micro, Small and Medium Enterprises on July 1, 2020.

"Any person who intends to establish a micro, small, medium enterprise may file online udyam registration."

Documents:- The new MSME registration process is completely online, paperless and based on self-declaration. No documents or proofs are required to be uploaded for registering an MSME. You may still need an Aadhaar card, Pan Card and Bank account details while form filling.

MSME Criteria

Proprietorships, Hindu Undivided Family, Partnership Firm, One Person Company, Limited Liability Partnership, Private Limited Company, Limited Company, Producer Company, any association of persons, co-operative societies or any other undertaking can obtain MSME registration in India. MSMEs will now be called Micro units if they have investments upto Rs 1 crore and turnover of less than Rs 5 crore.

The organizations which are eligible for Udyam Registration are meant to be either in manufacturing or producing or processing or preservation of goods or in providing the services. In other words, Traders who buy, sell, import, or export the goods are not even eligible for applying for Udyam Registration.

But you should know that there are a set of criteria that an entity has to meet to be classified as a medium, small, or micro-enterprise for obtaining the MSME registration.

As per the current notification

Types of Enterprises ( for Manufacturing or Service sector, Both)

Micro Enterprises

Investment up to Rs 1 Cr and turnover up to Rs 5 Cr

Small Enterprises

Investment up to Rs 10 Cr and turnover up to Rs 50 Cr

Medium Enterprises

Investment upto Rs 50 Cr and turnover upto Rs250 Cr

Benefits of udyam Registration:

• Tax Benefits
• Easy Clearance of Pending Payments
• 50% discount on trademark and Patent Fees
• Lesser Interest Rates For Bank OverDraft(OD)
• Eligible for Mudra Loan Scheme
• Apply Government Tenders Easily

What are the guidelines for delayed payment of dues to the MSE borrowers?

With the enactment of the Micro, Small and Medium Enterprises Development (MSMED), Act 2006, for the goods and services supplied by the MSME units, payments have to be made by the buyers as under: The buyer is to make payment on or before the date agreed on between him and the supplier in writing or, in case of no agreement, before the appointed day. The agreement between seller and buyer shall not exceed more than 45 days. If the buyer fails to make payment of the amount to the supplier, he shall be liable to pay compound interest with monthly rests to the supplier on the amount from the appointed day or, on the date agreed on, at three times of the Bank Rate notified by Reserve Bank. For any goods supplied or services rendered by the supplier, the buyer shall be liable to pay the interest as advised at above. In case of dispute with regard to any amount due, a reference shall be made to the Micro and Small Enterprises Facilitation Council, constituted by the respective State Government. To take care of the payment obligations of large corporate borrowers to MSEs, banks have been advised that while sanctioning/renewing credit limits to their large corporate borrowers (i.e. borrowers enjoying working capital limits of Rs. 10 crore and above from the banking system), to fix separate sub-limits, within the overall limits, specifically for meeting payment obligations in respect of purchases from MSEs either on cash basis or on bill basis. Banks are also advised by RBI to closely monitor the operations in the sub-limits, particularly with reference to their corporate borrowers’ dues to MSE units by ascertaining periodically from their corporate borrowers, the extent of their dues to MSE suppliers and ensuring that the corporate pay off such dues before the ‘appointed day’ /agreed date by using the balance available in the sub-limit so created.

Contact Details

MSME Registration Consultancy Services

CorpAid Consultancy Services Private Limited.

Office No. 101-102, 1st Floor, Gulmohar Apartments, East Street, Camp, Pune - 411001, Maharashtra, India

Contact No. 9112211457

Email : help@msmeregistration.org

Website: www.msmeregistration.org