Micro, Small & Medium Enterprises (MSME)
A manufacturing or service sector unit can register itself as an MSME unit under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. It is not compulsory to obtain MSME registration but such registration make the enterprise eligible for various benefits given by Government to the Micro, Small and Medium sized enterprises such as reduced interest rate, power tariff subsidy, additional unsecured credit facility, etc.
Only those entities which are classified as a micro, small or medium enterprises are eligible to be registered under the MSMED Act, 2006. Recently, the Government of India has revised the definition of such enterprise to give them more flexibility in their classification.
Classification of Entities
Old Classification
| Classification | Investment in Plant & Machinery | |
|---|---|---|
|
|
Manufacturing Sector |
Service Sector |
|
Micro Enterprise |
< 25 Lakhs |
< 10 Lakhs |
|
Small Enterprise |
> 25 lakhs < 5 Crores |
> 10 lakhs < 2 Crores |
|
Medium Enterprise |
> 5 Crores < 10 Crores |
> 2 Crores < 5 Crores |
New Classification
| Classification | Investment in Plant & Machinery + Annual Turnover | |
|---|---|---|
|
Micro Enterprise |
< INR 1 crore |
< INR 5 crores |
|
Small Enterprise |
< INR 10 crores |
< INR 50 crores |
|
Medium Enterprise |
< INR 50 crores |
< INR 250 crores |
Tax Vyapar can help your business, company or firm to get registered as an MSME unit under the MSMED Act, 2006 as well as to obtain the various benefits available to MSMEs.
Want to know more? Drop your contact details here
Udyam Registration
Prior to the recent changes made by the Ministry of Micro, Small & Medium Enterprises, after registering as MSME, every enterprise used to get a 12-digit Unique Identification Number which was called as Udyog Aadhaar.
From 1st July, 2020, a new MSME registration process is in operation. Under the new process, upon registration, an enterprise (referred to as “Udyam” in Hindi) is assigned an alpha numeric Permanent Identity Number known as “Udyam Registration Number” and an e-certificate is issued. Accordingly, the new process for MSME registration is called Udyam Registration.
The striking feature of Udyam Registration is that it is completely based on self-declaration which means that the entities don’t have to upload any documents as a proof. This reduces transaction time and costs and thus allows entrepreneurs and enterprises to focus more on their core operations and become globally competitive. Further, like the earlier process for Udyog Aadhar, the Udyam Registration process is fully online and free of cost and also based on Aadhar Number of the individual / Authorised Person. Aadhaar number shall be of the proprietor in the case of a proprietorship firm, of the managing partner in the case of a partnership firm and of a karta in the case of a Hindu Undivided Family (HUF). In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organisation or its authorised signatory shall provide its GSTIN and PAN along with its Aadhaar number.
Our Charges
Udyam Registration
(earlier known as Udyog Aadhar)-
All inclusive cost
Note: Udyam Registration is free of cost and the above amount only represents our time cost for assisting you in completing the Registration process.
Features & Advantages
Government Subsidy Schemes
Entities registered as MSME are eligible for various government subsidies such subsidy on setting up new manufacturing facility, power tariff subsidy, etc.
Opening Current Account
Many banks accept MSME Registration certificate as a proof of address for opening Current Bank Account.
No Documentation & Compliance
There is absolutely no need for any documentation for registration as well as for any compliance after registration
Liberal terms for borrowing
MSME registration entitles an entity to borrow at liberal terms such as availing Mudra Loan, without collateral in CGTMSE, lower interest rate, etc.
Receiving Payments Due
Corporate are required to make the payments due to MSME within 45 days from the date of delivery of goods or receipt of services
No Renewal
There is no requirement for annual or periodic renewal of MSME Registration.
Time Frame
Udyam Registration (Udyog Aadhar - MSME)
Infact in most cases within few hours, after we receive all the required information
Information Required
The following information is required for obtaining MSME Udyam Registration (earlier Udyog Aadhar):
- Name of Business Entity
- PAN of the Business Entity
- Place of Business
- Bank Account with IFSC Code
- Aadhar Card of Authorized Person
- Mobile Number & Email Id
- Business Activity of Firm (Service / Manufacturing / Trading, etc)
- Number of Employees
- Amount Invested in Plant & Machinery
- Annual Turnover
Get your MSME Udyam Registration NOW !
By continuing beyond this page, you agree to our Terms of Service, Privacy Policy and Refund Policy. Refer our Website Disclaimer too.
Copyright © 2020 Tax Vyapar Solutions Private Limited. All rights reserved