Micro,
Small and Medium enterprises in India need to register themselves as MSME with
the Ministry of Micro, Small and Medium Enterprises. The MSME registration also
called the Udyog Aadhaar registration is not mandatory by law but the
additional benefits that come with the registration are encouraging enough for
the owners and promoters of these enterprises to get the unit registered.
This
industry offers the highest employment opportunities to the general public. The
sector employs 69% of the total employed crowd in India, contributes 45% to the
manufacturing sector and 45% to exports and is expected to contribute 50% to
India’s GDP by 2024.
The
business entities that can benefit under the MSMED Act are:
·
Proprietorship firms
·
Partnership firms
·
LLPs
·
Private Limited Companies
·
Public Limited Companies
The
benefits of MSME registration are:-
A.
Central Government Benefits:
·
Under Priority sector lending, easy sanction of
loans from banks
·
Loans at subsidized rate of interest from banks
·
Indirect Tax exemption scheme
·
Exemption under Direct Tax Laws
·
Protection against delay in payment of loans as
per the Delayed Payments Act.
B.
State Government/ Union Territory incentives
for MSMEs:
·
Development of specialized industrial estates
·
Tax subsidies
·
Power tariff subsidies
·
capital investment subsidies
C.
Other Benefits:
·
Bank loans to MSME’s are cheaper by at least
1-1.5% compared to other businesses
·
Under the Mudhra Loan Scheme MSME get easy
credit with collaterals.
·
Easier approvals for government agencies for
registrations and licenses
·
Eligible for government subsidies
·
Hassle-free opening of current account for the
business
·
For Trademark registration, only 50% of the
applicable fee needs to be paid by the MSME
·
Sponsorship or financial support is received
from the Government to participate in foreign expos and exhibitions to showcase
products.
·
Disputes are resolved faster
·
Preference during awarding of government
tenders
The
UdyogAadhaar came into effect from September 2015. The MSME Registration is a simple
process and can be applied online or by submitting the application form at the
nearest zonal/branch office of NSIC (National Small Industries Corporation). It
is a 12-digit number issued by the Ministry and remains the same throughout the
lifetime of the business.
The
following documents need to be submitted along with EM--II for UdyogAadhaar
registration:-
1.
Clearances
from the Pollution control Board, Drug Control Board.
2.
Proof
of ownership of the premises or rent receipt/ NOC from owner in case of rented
property
3.
Partnership
Deed or Memorandum of Association and Articles of Association and Certificate
of Incorporation along with an authorization of one of the directors to sign
the application form
4.
Industrial
license copy
5.
Purchase
bill of machines installed
6.
Personal
Aadhaar number of the directors, name of the Industry, Address of the business
unit, bank details of the business
Once uploaded, the registration number
is received via email on the email id provided.
Learn Simplest way of udyog aadhar registration
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