MSME Registration

Benefits of MSME/Udyam Registration

The following are the major benefits given to registered MSMEs under the Micro, Small & Medium Enterprises Development Act, 2006

• You can get collateral-free loans from banks under the credit guarantee fund scheme (CGS) for micro and small enterprises
• Some items have been earmarked to be manufactured only by small scale enterprises
• Once you get the MSME certificate for your microenterprise, it gets much easier to get licenses, registrations, and approvals for the same
• Being able to show your MSME certificate while making these applications will speed up the process
• You get special consideration for participating in international trade fairs, exhibitions, and buyer-seller meets. You can also hold international seminars and conferences which are in the interest of MSME sector
• When you have MSME registration, you get many things done at a subsidised price: Barcode registration, NSIC performance and credit ratings, industrial promotion subsidy (IPS) subsidy, ISO certification, electricity bill, and patent registration can be done easily
• The interest rate charged by banks for MSME registered enterprises is lower than the normal interest rate
• To promote technological growth among the micro industries CLCSS scheme was introduced that provides 15% capital subsidy up to ₹15 lakhs for the purchase of plant and machinery
• While applying for a government tender, the ministry of micro, small and medium enterprises gives the following benefits to a microenterprise:
• Tender sets can be issued free of cost
• They are exempted from paying earnest money
• Security deposit is waived up to a certain monetary limit.

Udyam Registration Process

Vakilsearch uses an easy three step process to complete the Udyam registration process.
However the complete process is much more complex and time consuming.

Udyam Registration Official Website.

Go to https://udyogaadhaar.gov.in/UA, the Udyog Aadhar's official website.

Provide Personal Information

Type in your personal data

• Your name and 12-digit Aadhar number must be entered first
• Choose ‘Validate & Generate OTP’
• The OTP number will then be sent to your registered number
• Aadhar card is a must for getting udyog Aadhar.

Business Information

Complete the information about the company or companies you wish to register. You must fill in the name of the company. If you have more than two businesses, you should enter the names of the businesses under Enterprise 1 and Enterprise 2.

Communication Details

The postal address, registered email address, registration mobile number, and other details about the company or companies must all be entered in this section.

Additional Details

Fill in the remaining information needed. In this section, you must include the date the business was founded as well as any other information previously related to the company's registration.

Registration Proof

Information about registration through the SSI, EM1, or EM2 processes is included in this category

Provide the Bank Information

For this section, you must provide the bank information for the company, which includes the account number, bank name and IFSC code, and branch name.

Classification of the Company

Now specify the company's primary line of business, i.e., whether it engages in manufacturing or delivering services. It is important to mention the main business.

Services

If your business deals with different types of prospects, you must pick the one where it has a strong presence. For instance, you would choose manufacturing as your core business if the company's core processes consisted of 70% production and 30% service.

Capital

Provide information regarding the total number of employees in your company as well as the total investment in lakhs. When registering under this category, if you own multiple businesses, you will need to complete the necessary data for each business separately.

Location of the Firm

Select the industry district centre and finally accept the declaration from the list provided on the website. Then, click the submit button after accepting the declaration. You will receive an acknowledgement number following the selection.