What is Udyam Registration OR MSME Registration?

Business
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This was posted by Ashwani Arora on FinTalks Facebook Group on 3rd April 2021.

Udyam Registration also known as MSME Registration is nothing but a government registration that is provided along with a recognition certificate and a unique number. This is to certify small/medium businesses or enterprises.

BENEFITS AVAILABLE TO MSMEs:

  1. Credit Linked Capital Subsidies for MSMEs

  2. Low-Interest rate on the loan

  3. ISO Certification Charges Reimbursement

  4. Incubation Scheme For MSME

  5. Market Development Assistance Scheme for MSME

  6. Subsidy on Patent Registration

  7. Protection against Delayed Payments

  8. Tax exemption for Innovative startups

  9. Tender Preference to MSME

  10. MSME Udyam Registration Certificate can be used as valid id in opening of BUSINESS CURRENT ACCOUNT.

and other benefits…

What is an MSME (Revised Classification)?

Manufacturing Enterprises and Enterprises rendering Services

Micro Enterprise:

Investment in Plant and Machinery or Equipment: Not more than Rs.1 crore and Annual Turnover not more than Rs. 5 crore

Small Enterprise:

Investment in Plant and Machinery or Equipment: Not more than Rs.10 crore and Annual Turnover not more than Rs. 50 crore

Medium Enterprise:

Investment in Plant and Machinery or Equipment: Not more than Rs.50 crore and Annual Turnover not more than Rs. 250 crore

Register a Micro, Small, and Medium Enterprise:

  1. Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates or proof.

  2. On registration, an enterprise (referred to as “Udyam” in the Udyam Registration portal) will be assigned a permanent identification number to be known as “‘Udyam Registration Number”.

  3. An e-certificate, namely, “Udyam Registration Certificate” shall be issued on completion of the registration process.

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