Jobner Bagh STN Road, Jaipur support@taxwink.com
Become an Associate

Quick Links

MSME (Udyog Aadhar)

  • Home
  • MSME (Udyog Aadhar)
Call to Expert Whatsapp

Required Documents

Aadhar Card of proprietor/any partner/any director or authorized signatory

PAN Card of proprietor/Partnership Firm/LLP/Company

Name of Firm (in case of proprietorship firm)

Type of organization- Manufacturing or Service Provider

Mobile No. and Email Id of proprietor/any partner/any director/authorized signatory

Social category- General/ST/SC/OBC

Physical category- Normal or Handicapped

Address Proof of premises- Rent Deed/Lease Deed/NOC from owner/Copy of registry or property tax receipt in case of owned premises along with a copy of utility bill

Date of commencement of business

Cancelled Cross Cheque for bank details

Number of employees

Value of Investment in Plant & Machinery (Copy of purchase bills required)

NIC Code

MSME stands for “Micro, Small and Medium Enterprises”. MSME are the backbone of economy of the country. MSME plays a crucial role in the growth and development of any economy. As such, to promote MSME, MSMED Act 2006 was formulated by the Government. To take the various benefits from Government and banking sector under MSMED Act, MSME registration is required. However, MSME registration is not mandatory but it is advisable to obtain MSME registration.

MSME are of 2 types:

  1. Manufacturing Enterprises
  2. Service Enterprises

MSME registration is now Aadhar based. It is a unique 12 digit Government Identification Number issued by the Ministry of MSME for all small, medium enterprises & small scale industries. This registration is also known as “Udyog Aadhar”.

Required Documents

Aadhar Card of proprietor/any partner/any director or authorized signatory

PAN Card of proprietor/Partnership Firm/LLP/Company

Name of Firm (in case of proprietorship firm)

Type of organization- Manufacturing or Service Provider

Mobile No. and Email Id of proprietor/any partner/any director/authorized signatory

Social category- General/ST/SC/OBC

Physical category- Normal or Handicapped

Address Proof of premises- Rent Deed/Lease Deed/NOC from owner/Copy of registry or property tax receipt in case of owned premises along with a copy of utility bill

Date of commencement of business

Cancelled Cross Cheque for bank details

Number of employees

Value of Investment in Plant & Machinery (Copy of purchase bills required)

NIC Code

Benefits of MSME (Udyog Aadhar)

  • Lower Interest rate on loans

    MSME are eligible for financing from banks under term loans and overdraft schemes at a subsidized rate under Central Government schemes.

  • Government Tenders

    MSME are given in preference in Government Tenders for supply of goods and services. Even, relaxation in tender fees is also available for MSME.

  • Discount in trademark & patent fees

    50% discount is allowed to MSME in Government fees while applying for trademark & patents. Further, patents applied by MSME are processed expeditiously.

  • Easy clearance of dues

    MSME have been provided a grievance platform by Government to realize their prolonged and disputes dues from their parties. Various incentives are given by State Government in the form of electricity subsidy, lower licensing requirements for MSME.

  • Loan under Mudra Yojna

    MSME are eligible to get funds under Mudra Yojna at a low interest rate without any collateral.

  • Government Incentives

    Various incentives are given by State Government in the form of electricity subsidy, lower licensing requirements for MSME.

Frequently Asked Question

What are Micro, Small and Medium Enterprises (MSME)?

MSME are classified into 2 categories:-

  • Manufacturing Enterprises
  • Service Providers

Earlier, Their classification was made into micro/small/medium on the basis of investment in plant & machinery/ equipments. Such classification was as below:-

 

Type of entity

MICRO

SMALL

MEDIUM

Manufacturing Enterprises

Investment upto Rs. 25 Lakhs

Investment upto Rs. 5 Crores

Investment upto Rs. 10 Crores

Service Providers

Investment upto Rs. 10 Lakhs

Investment upto Rs. 2 Crores

Investment upto Rs. 5 crores

 

However, as a part of Atmanirbhar Abhiyaan package of Central Government, the classification has now been changed as below:

 

Type of entity

MICRO

SMALL

MEDIUM

Manufacturing Enterprises & Service Provider

Investment up to Rs. 1 Crore

       AND

Turnover up to Rs. 5 Crore

Investment upto Rs. 10 Crores

         AND

Turnover upto Rs. 50 Crore

Investment upto Rs. 50 Crores

                    AND

Turnover upto Rs. 250 Crore

Is MSME registration mandatory in India?

No, MSME registration is not mandatory in India.

How may items are reserved for manufacture in MSME/SSI sector?

20 items are reserved for manufacturing in the MSME/SSI sector.

What is the validity of MSME certificate?

The validity of MSME certificate is for 5 years.

What is Udyog Aadhar Memorandum (UAM)?

UAM is a one page registration form which constitutes a self-declaration format under which the MSME will self certify its existence, bank account details, promoter/owner Aadhar details and othe information required.

List out the various MSME Schemes launched by the Government?

  • Grievance Monitoring System
  • Udyog Aadhar Memorandum
  • Zero Defect Zero Effect
  • Incubation
  • Credit Linked Capital Subsidy Scheme
  • Women Enterpreneurship
  • Quality Management Standards & Quality technology tools

Latest Blogs

View All Blogs

Know what is ITR and why it is important to file it

By Taxwink Team | 26 Apr,2024

What Is an Income Tax Return? Is It Mandatory to File an ITR in India? Direct tax collections in India are setting new records. Year-over-Year (Y-o....

Read More

Good News for NGOs: CBDT extends due date for filing of Form 10A/ Form 10AB up to 30th June 2024

By Taxwink Team | 26 Apr,2024

Good News for NGOs: CBDT extends due date for filing of Form 10A/ Form 10AB up to 30th June 2024   For last 7 months, an issue had been rai....

Read More

Choosing the Correct ITR form- ITR 1 or ITR 2

By Taxwink Team | 22 Apr,2024

Choosing the Correct ITR form- ITR 1 or ITR 2     Income Tax Department has prescribed seven different forms for filing of inco....

Read More

Cases where ITR Filing is Compulsory despite income below exemption limit

By Taxwink Team | 22 Apr,2024

According to Income Tax law, filing of income tax return of individuals is dependent on income threshold. Individuals are mandated to file income tax....

Read More
Become an Associate
Unsubscribe