MSME Registration | Udyam | Udyog Aadhar Registration

1. MSME Registration | UdyogAadhar | Udyam Registration MSME sector is having a vast and diverse opportunity to develop and grow your business. Various benefits are available for the MSME enterprise. Government has innumerous faith in its citizen, for the development and betterment it is providing collateral free loan to the Business. i.e. A loan without an Guarantee. To promote the culture of MSME Government is launching various scheme which you can have a look on https://www.msmeregistration.org/benefits . Micro, Small and Medium Enterprises (MSME) sector has emerged as a mostly dynamic and vibrant sector of the Indian economy in a decade span of time. MSME Sector contributes around 40% to the GDP of India and counting with the aim at facilitating the promotion and development of small and medium Enterprises. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country. According to the Federation of Indian Micro and Small & Medium Enterprises (FISME), reduction in Customs Duties on steel and ferrous and non-ferrous scrap is a major direct benefit to the MSMEs as it will help reduce the raw material prices. This was one of the main demands of the sector.

2. DEFINATION OF MSME • The According to Section 7 of the MSME Act, 2006, the government has prescribed specific turnovers and investment limits to reckon whether an enterprise falls under the micro, small or medium category. • definition of Micro, Small and Medium (MSME) enterprises is as under: • A micro enterprise is defined on the particular terms and condition where, Manufacturing Enterprises and Enterprise Rendering Services - Investment in plant and machinery for equipment’s is not more than Rs. 1 Crore and Annual Turn Over: not more than 5 Crore. • A small enterprise is an enterprise where, Manufacturing Enterprises and Enterprise Rendering Services - Investment in plant and machinery for equipment’s: not more than Rs. 10 Crore and Annual Turn Over: not more than 50 Crore. • A medium enterprise is an enterprise where, Manufacturing Enterprises and Enterprise Rendering Services - Investment in plant and machinery for equipment’s: not more than Rs. 50 Crore and Annual Turn Over: not more than 250 Crore.

3. Benefits of Getting MSME’s / UDYAM Registration… • MSME Samadhan - Protection against Payments (Delayed Payments) • At times, the buyers of services or products from the MSME’s or SSIs tend to delay the payment. The Ministry of Micro, Small and Medium Enterprise lend a helping hand to such enterprises by giving them the right to collect interest on the payments that are delayed from the buyer’s side. The settlement of such disputes must be done in minimum time through conciliation and arbitration. • In case, if any MSME registered enterprise supplies any goods or services to a buyer then the buyer is required to make the payment on or before the agreed date of payment or within 15 days from the day they had accepted the goods and services from MSME or SCI registered business (if there is no mention of the date of payment). • If the buyer delays the payment for more than 45 days after accepting the products or services then the buyer has to pay compound interest along with interests (monthly) on the amount that was agreed to be paid. The interest rate is three times the rate that is notified by the Reserve Bank of India.

4. Benefits of Getting MSME’s / UDYAM Registration… • Fewer Electricity Bills • This concession is available to all the Enterprises that have the MSME Registration Certificate by providing an application to the department of the electricity along with the certificate of registration by MSME. • 15% CLCSS subsidy to purchase fully • The Ministry of Micro, Small, and Medium Enterprises is operating a scheme namely “Credit Linked CGSTI Subsidy Scheme (CLCSS) for technology up-gradation of Micro and Small Enterprises. The scheme was launched in October-2000 and revised from 29.9.2005. The revised scheme aims at facilitating technology up-gradation of Micro and Small Enterprises (MSEs) by providing a 15% capital subsidy (limited to maximum Rs.15 lakhs) for the purchase of Plant & Machinery. The maximum limit of eligible loans for calculation of subsidy under the scheme is Rs.100 lakhs. Presently, more than 1500 well established/improved technologies under 51 sub-sectors have been approved under the Scheme.

5. Industries which can benefits from clccs • Bio­tech Industry • Common Effluent Treatment Plant • Corrugated Boxes • Drugs and Pharmaceuticals • Dyes and Intermediates • Industry based on Medicinal and Aromatic plants • Plastic Molded / Extruded Products and Parts/ Components • Rubber Processing including Cycle/ Rickshaw Tyres • Food Processing (including Ice Cream manufacturing) • Poultry Hatchery & Cattle Feed Industry • and other 30 sectors