MSME / Udyam Registration

MSME Registration: Apply for Udyog Aadhar

MSME Registration or Udyam Registration is an official process initiated by the Ministry of Micro, Small, and Medium Enterprises (MSME), Government of India, for the formal registration of micro, small, and medium enterprises (MSMEs). Introduced on July 1, 2020, it replaced the earlier Udyog Aadhaar Memorandum (UAM) system. The registration is designed to classify enterprises based on their investment and turnover. As per the new classification metrics, all Micro, Small, and Medium Enterprises (MSMEs) in India are collectively known as Udyam.

Entrepreneurs can apply for MSME Registration or Udyam Registration online, and upon successful completion, the enterprise is assigned a permanent Udyam Registration Number and receives an e-certificate known as the Udyam Registration Certificate. This online, self-declaration-based process aims to streamline access to government benefits.

What do You Mean by MSME Classification?

Previously, the prevailing MSME Classification was based on the criteria of investment in production facility and machinery. So to access MSME benefits, the MSMEs have to confine their investment to the lower level, as shown below:

Previous MSME Classification

Benefits Offered by MSME Registration to the Small Scale Units:

• MSME registration holders have access to cheaper loans with an interest rate as low as 1.5%.
• Ensures credit relating to MAT, i.e. minimum alternate tax to be carried forward for up to five years instead of 10 years.
• MSME registration ensures the availability of any rebates and concessions.
• MSME registration holders can avail concessions on patent registration.
• MSME registration holders can use Udyam Registration Portal to get access to Government e-Marketplace and e-tenders.
• One Time Settlement Fee for MSMEs confronting payment issues with vendors.
• The Udyam Registration shall aid the MSMEs in securing benefits of following government schemes.
• Entities with MSME registration are eligible for priority sector lending from banks.
• MSMEs have access to the government security deposit waiver, which is beneficial while taking part in e-tenders.
• Ensures subsidy for Barcode registration.
• Ensures Exemption on Direct taxes through different tax saving schemes.
• Fees relaxation for ISO certification.
• Electricity bills concession.
• Ensure exposure to trade fairs conducted at the domestic and global level.