MSMEs Eligibility Benefit Registration: MSME or Micro, Small, and Medium Enterprises are sectors that are affiliated with the production, processing, manufacturing, and preservation of goods and commodities for the growth and development of the nation. This sector is the principal contributor to the gross domestic product, employment generation, and exports. The article briefly explains eligibility, benefits, and registration.
- Introduction To Micro, Small and Medium Enterprises
- MSMEs Eligibility Criteria
- Benefits Regarding MSMEs Or Micro, Small, and Medium Enterprises
- Micro, Small, and Medium Enterprises Registration
- Registration for Entrepreneurs With UAM
The abbreviation MSME stands for Micro, Small, and Medium Enterprises. These are the classes of enterprises that work and operate on a small scale as compared to big tycoon enterprises.
Doubtless, micro, small, and medium enterprises are small in their overalls but they are colossal in number. MSMEs or Micro, Small, and Medium Enterprises contribute to the country’s economy, therefore the role and existence of the enterprise are of critical importance.
The Government of India plays a significant role in the growth and development of the MSMEs or Micro, Small, and Medium Enterprises. The Government tries to hold the hands of the MSMEs or Micro, Small, and Medium Enterprises endeavours for their benefit as possible.
The key rationale behind the classification of enterprises is to distinguish them from the rest of the enterprises and pay special attention which they deserve.
The concept of Micro, Small, and Medium Enterprises was introduced in 2006 under the MSMEs Act, 2006.
Under this law of action, the Micro, Small, and Medium Enterprises falling under the eligibility criteria were required to register as Micro, Small, and Medium Enterprises. After successful registration, the enterprises under the MSMEs will hoard benefits instituted under the Act and benefits later in the development built by the Government.
Earlier, the Micro, Small, and Medium Enterprises were asked to obtain several registrations under the multiple registrations window to avail of multiple benefits. However, the Government later realised this issue and introduced a single-window registration system known as the Udyog Aadhar or UA registration which later was renamed multiple times such as the SSI Registration, entrepreneur’s memorandum.
What Are Eligibility Criteria for Micro, Small, and Medium Enterprises?
The tag of the Micro, Small, and Medium Enterprises and the registration process that falls under it allows the manufacture, production, or the service providence alone. Individuals falling under any of those services mentioned above are eligible to register themselves under the single.
|Enterprise||Investment in plant and machinery/ or Equipment||Turnover|
|Micro-Enterprise||Up to ₹1 Crore||Up to ₹5 Crore|
|Small Enterprise||Up to ₹10 Crore||Up to ₹50 Crore|
|Medium Enterprise||Up to ₹50 Crore||Up to ₹250 Crore|
- The benefits under the schemes and initiatives taken or launched by the Government of India under the “Atma Nirbhar Bharat Mission”, which includes distressed assets fund for MSMEs.SSI or MSME.
- Individuals undergo 50 percent concession in trademark registration fees- The Government fee for the Trade Mark registration is generally around Rs. 9000, however, for the Micro, Small, and Medium Enterprises, the Trade Mark registration fee is charged around Rs.4500.
- The reimbursement of ISO certification fees
- Benefits of the collateral-free loan- A loan is an inevitable need for any business and the Micro, Small, and Medium Enterprises require them the most, which often face issues of deep financial crunch. Collateral is a prerequisite to acquire a loan, but to get hold of the financial stability and support, they are exempted from the requirement of collateral security.
- Preferences in the Government contracts and tenders
- The Government of India as well as other Commercial banks provides special financial assistance schemes
- Exemption to pay Earnest Money Deposit. Any individual who applies for the tenders, contracts, or bids is required to deposit an advance or a token amount to give assurance of his or her interest to the other party in contract, tender, or bid. The Micro, Small, and Medium Enterprises sectors had been exempted to pay this amount
Micro, Small, and Medium Enterprises meeting the eligibility criteria are required to register as Micro, Small, and Medium Enterprises to avail the benefits and to recognize themself as such.
The MSME registration Online portal or system has been updated several times to meet the latest and prevailing needs and requirements of the individuals. Currently, the Government of India has introduced a new system known as Udyam Registration which is an online procedure.
If you are meeting the eligibility criteria of the MSME sector, you can apply for Udyam registration online at www.udyamregistration.gov.in
Things you must know about the Udyam Registration process-
- No requirement of any physical documents
- Subject to a Company or a Cooperative Society or a Limited Liability Partnership or a Society and Trust, the undersigned organization or its authorized signatory is responsible to provide its GSTIN and PAN number along with its Aadhar Card number
- Requirement of Aadhar Card number is a must for registration
- No requirement for the renewal process
- The Aadhar Card number facilitates as the proprietor in relevance to the proprietorship firm of the managing partner contingent upon the partnership firm. The Karta is contingent upon the Hindu Undivided Family or HUF.
- The enterprises are mandated to hold a PAN and GST with effect on April 1, 2021
- Enterprises cannot file more than one Udyam Registration.
- Udyam Registration requires no fee
- The provided information linked with GSTIN and PAN will be auto-populated
- After a successful Udyam registration form, the applicant acquires a permanent identity number
For those enterprises having a UAM registration, click on the option “For those having registration as UAM” or the option “For those already having registration as UAM through Assisted filing” on the homepage screen on the Government portal.
The page will automatically lead you to the page where the Udyog Aadhaar Number is to be entered and an OTP option should be selected.
MSME Form is created to present information in the framework of the outstanding payments
You are provided with two options- OTP through Email or OTP through mobile number. After choosing the OTP option, click on the “Validate and Generate OTP” option and enter the OTP. Once this process is completed, the registration details are to be filled and the Udyam registration will be deemed as complete.