Udyam Registration, also known as MSME Registration, is a website that allows you to register your business and receive a certificate of recognition as well as a unique number. This is for the purpose of certifying small and medium-sized companies or organizations.
The main goal of this service was to provide a means for the government to deliver the most benefits to medium and small-scale enterprises and industries in India that are registered via MSME using their Aadhar Card Number.
The owner, director, or proprietor of the business must provide his or her 12-digit Aadhar number. This is a legal requirement regardless of whether the firm or entity is a sole proprietorship, an LLP, a private limited company, or something else. A certificate of recognition received via the MSME registration process is required.
Types of Businesses ( for Manufacturing or Service sector, Both)
Investment of up to Rs 1 crore and a turnover of up to Rs 5 crore are possible.
- Small Businesses:
Up to Rs 10 crore in investment and up to Rs 50 crore in revenue
- Medium-sized Businesses (MSMEs):
Investments of up to Rs 50 crore and a turnover of up to Rs 250 crore are possible.
There are several benefits to registering under the MSMED Act:
- You receive collateral-free loans:
MSMEs in India are not offered any collateral loans by the Indian government. This guarantees that you have the necessary money to start your dream business. You may even utilize it to grow your company. This is made possible through the Credit Guarantee Trust Fund Scheme, which is a trust. It was created in collaboration by the Indian government, the Small Industries Development Bank of India, and the Ministry of MSMEs. The Credit Guarantee Scheme is administered by the trust.
- Subsidy to register patents:
If the enterprise is registered under the MSMED Act, the government of India gives a 50% discount on the loans it gets. It may be used to file a patent application with the Ministry of MSMEs.
- Industrial Promotion Subsidy:
If you register under this Act, you will be eligible for a government subsidy to advertise your goods and services.
- Interest rate increase on overdraft facility:
MSMED-registered ventures are entitled to a 1% interest rate on their overdraft facility. Depending on the lender you pick, the amount may differ.
- For the loans you take out, you get cheap interest rates:
MSMEs that are registered under the MSMED Act are entitled to a 2% interest sub pension in addition to the overdraft exemption. For incremental loans of less than INR 10000000, these are made accessible.
- Expenses incurred for ISO certification are reimbursed:
MSMEs that register under the Act are entitled to reimbursement of costs incurred in acquiring certifications such as ISO9000 and ACCP certification, among others. This is done in order to increase their overall performance.
- The MSMEs incubator program:
The Indian government launched this program in 2019. Aspiring entrepreneurs may utilize this to create their original ideas for new product development. This plan assists a venture that is registered under the MSMED Act in the following ways:
- A concept can receive up to INR1500000 in funding to help it grow.
- A loan of INR10000000 is available for the purchase and installation of business intelligence gear. This is being done in order to improve the field’s R&D efforts.
- Seed cash support of up to INR10000000 is available to BIs and His to help them turn their ideas into businesses. Grants are available to help with this.
- Scheme for Market Development:
A pricing and purchase preference system is in place at the federal level. This policy allows for up to 358 items to be listed. The government only buys these items from MSMEs that have registered under the Act. Even if a unit does not come into the category of the reserve as defined by the policy, the program provides marketing assistance.
- Protects your company from late payments:
Buyers may purchase MSMEs’ products or services but fail to pay their bills on time. In such a case, the Ministry of MSMEs will come to your aid. It allows them to charge interest on late payments. Arbitration and conciliation are used to reach an agreement in this case. And these problems are usually handled quickly.
- For creative startups, there is a complete tax exemption:
Do you have an MSMED Act registration? Is your business a cutting-edge start-up? If you answered yes, your company is entitled to a three-year tax-free period. In any of these financial years, the turnover shall not exceed INR 25000000. The Income Tax Act allows you to take advantage of this benefit. Companies having up to 10 years of service are considered startups under this criteria. It also provides for the carrying over of credit for minimal tax options for a period of 15 years.
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- Lowering your power bill:
Electricity bill discounts are available to MSMED Act-registered businesses. To access this service, you must submit an application together with your registration certificate to the Electricity Department.