MSME Registration and Benefits

Micro small and Medium Enterprises (MSME) has always been a backbone of Indian Economy. Around 63.4 million units of MSME all over the India. MSME(s) contribute around 6.11% of the GDP form manufacturing sector and 24.63% of the GDP form service sector. Around 120 million employment is generated by these enterprises.

By the new slogan “Vocal for the Local” by our respected Prime Minister Mr. Narendra Modi which has strengthen his vision of “ATMA NIRBHAR BHARAT” i.e. Self-reliant India and the 20 Lakh Crore economic package came like Elixir for the struggling Indian GDP. The MSME(s) got an important role in this mission of self-reliant India.

Who All can Register as an MSME?

Only Manufacturing or Service Enterprises can be registered under the MSME.

The Classification limit for both manufacturing and service sector are same.

What are the Benefits of Registration?

1. 50% Subsidy on Patent or Trademark Registration

The Enterprises registered under the MSME get a hefty subsidy of 50% in the government fee of the patent and trademark registration.

2. Collateral Free Loans from Bank

The Government of India has launched Credit Guarantee Fund Scheme (CGS) for providing the Micro and Small Enterprises collateral-free credit to them. Credit Guarantee fund Trust for Micro and Small Enterprises (CGTMSE) is setup by The Ministry of Micro, Small and Medium Enterprises, Government of India and Small Industries Development Bank of India (SIDBI) for the implementation of CGS.

Emergency Credit Line Guarantee Trustee Company (ECLGS) is launched by the Government of India as a booster to the MSME sectors bringing 3 Lakh Crore additional funding at a concessional rate of interest of 9.25%. The National Credit Guarantee Trustee Company (NCGTC) will provide 100% guarantee coverage to eligible MSME and MUDRA borrowers in form of Guarantee Emergency Credit Line.

3. A relief of 1% on the interest rate of the Overdraft Facility

All the enterprises who have registration under the MSME can avail the exemption of 1% on the interest rate of the Overdraft Facility provided by the Bank. The MSME enterprise need to make an application for the same into the bank. But this is not same in all the bank the rate may differ bank to bank.

4. Electricity bill Concession

The enterprises registered as a MSME may after making an application to the Electricity Department get concession in the electricity bill.

5. ISO application fees reimbursement

Taking an ISO certification amount to a heavy expense for an organization. But the MSME are benefited by the government as the MSME enterprises get the reimbursement of the ISO fees paid by them by making an application.

6. Privilege in Government Tenders

By amending the General Financial Rules 2017 the government notified that the global tenders will be disallowed in government procurement up to Rs. 200 crores. This is a big boost for the MSME enterprises as they need not to compete with global organization and it will help them grow.

There are many more benefits provided to the MSME enterprises time to time by the government.

Checklist of the Documents and Details required for MSME registration

• ADHAR card of the Applicant (Proprietor/ Partner / Director)

• Name of Applicant

• Caste

• Business Name

• Type of Business Entity

• Address of the Plant

• Address of the Office

• Date of Commencement of the Business

• Bank Details (Account No. and IFSC code)

• Business Activity Details

• Number of employees

• Investment in Plant and Machinery and Equipment

• Photo and Id Proof of Applicant

• Mobile No. of Applicant (Linked with ADHAR)

• Email Id for OTP Verification

5 Simple Steps for Registration as MSME?

Step 1 - Go to the Site of UDYOG AADHAAR https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx

Step 2 – Enter the AADHAAR No. and click on generate OTP. The OTP will be send to the Mobile Number linked to your AADHAAR.

Step – 3 Fill the details as required in the registration form

STEP – 4: Click on Submit and Enter the OTP

Step 5: After OTP validation your MSME Certificate will appear on the screen with The UAM No.

FAQ

Is Aadhaar necessary for the MSME Registration?

Yes, AADHAR no. is necessary for doing Online MSME Registration.

What is the Fee for MSME Registration?

There is no Amount charged for the MSME Registration.

What is Validity of MSME Registration?

MSME Registration is Valid for the Lifetime.

Can an Existing Business can Apply for MSME Registration?

Yes, Both New as well an existing Business can apply for MSME Registration.