If you are looking about MSME or Udyam Registration process in India leading to Udyog Aadhaar registration in India, here you will find all the details, benefits, procedure, eligibility criteria, documents required, guidelines and other frequently asked questions. With Udyog Aadhaar Registration in India, micro, small and medium enterprises can have access to priority sector lending, power tariff subsidies and tax exemptions.
For Udyog Aadhaar, only one registration form is to be filled out with the Aadhaar card acting as the only legal document. Udyog Aadhaar is also called the SSI/MSME registration in India. SSI stands for Small Scale Industry Registration and comes under the Ministry of Micro, Small and Medium Enterprises. Once your company is registered as SSI, it is eligible for availing all schemes and benefits that are exclusively granted for small businesses by the government.
Important Information about Udyog Aadhaar Registration in India
- Udyam Registration in India is fully facilitated system by Government
- Any micro, small or medium enterprise for the purpose will be termed as as Udyam and its Registration Process will be known as “Udyam Registration”
- A permanent Udyam registration number will be given after registration.
- After completion of the process of Udyam registration, a certificate will be issued online.
- This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed.
- The renewal for Udyam Registration is not required as it is a one time activity.
- Our single window systems at Champions Control Rooms and at DICs will help you in the process.
- Registration Process is totally free. No Costs or Fees are to be paid to anyone.
- MSME Registration or Udyam registration in India is free, paperless and based on self- declaration
- No documents or proof are required to be uploaded for registering an MSME. Only Aadhaar Number will be enough for registration.
- PAN & GST linked details on investment and turnover of enterprises will be taken automatically from Government databases.
- The online system is fully integrated with Income Tax and GSTIN systems.
- Having PAN & GST number is mandatory from 01.04.2021.
- Those who have EM-II or UAM registration or any other registration issued by any authority under the Ministry of MSME, will have to re-register themselves.
- No enterprise shall file more than one Udyam Registration. However, any number of activities including manufacturing or service or both may be specified or added in one Registration.
Benefits for Udyog Aadhaar Registration or Udyam Registration
Interest subsidy on loans: The subsidized rate of interest is available to MSME as compared to interest on loan to other business entities.
Tax Benefits: MSME may avail certain direct tax exemptions and subsidies from government.
Opportunities: The registration under MSME in India helps open doors to various tenders/ Government tenders which are available to promote small business and growth.
Easy approvals:The licenses and certifications are easily approved without any hassle.
Simple Steps for MSME registration in India with us:
- Consultation – A discussion about what is best for your company with our experienced professionals.
- Data Verification – All the files and documents you submit will be double checked and verified by our team.
- Associate Assignment – You will be connected to a dedicated affiliate who will process the online SSI Application and assist you.
- License Receipt – Within 15 days of the application, the certificate will be issued and you will receive it.
Udyam Registrations are done by enterprises of the following sizes:
Micro Enterprises: Smallest of all enterprises with an investment of not more than 10 lakhs. Further, the investment to be made by Micro Enterprises in Plant and Machinery should not be less than 25 lakhs.
Small Enterprises: The investment limit ranges from 10 lakh to 2 crores with an investment of 25 lakhs -5 crore in Plant and Machinery.
Medium Enterprises: The investment limit ranges from 2 crore to 5 crores with an investment of 5 crore -10 crore in Plant and Machinery.
Understanding SSI/MSME Registration
Registering for MSME can be done completely online and the process can be made more hassle free with some assistance.
The government of India brought in the MSMED Act in order to promote the small scale industries because it plays a pivotal role in the socio economic development of the country.
This Act was a means to keep a record list of all the industries registered as MSME or SSI. This record helps in employment of people and provides incentives as well.
The MSMED Act includes the following entities:
- Micro, small and medium enterprises (MSME)
- Small scale industries (SSI)
The different sectors have different limits for registering under the act, these caps are:
- A manufacturing enterprise with plants and machinery that had an investment of below Rs 10 crores is an MSME.
- A service enterprise that had an investment of below Rs 5 crores is an MSME.
- Once the company exceeds the upper limit put on the amount in the future, it is not considered to be an MSME anymore.
With an SSI registration certificate, a company can get various benefits from the Government of India including :
- Lesser interest rates
- Excise exemption scheme
- Tax subsidies, capital investments and power tariff.
- Additional support
New Udyog Aadhaar replaced SSI/MSME Registration
In 2015, a new act called Udyog Aadhaar was brought in to make the registration process for small and medium sized enterprises simpler. Udyog Aadhaar has replaced MSME and now is conducted online with only the Aadhaar card acting as the sole document.
MSME Schemes Offered under Udyog Aadhaar
Udyog Aadhaar Memorandum (UAM)
It is a simple one page form introduced under the MSMED Act, 2006. Not much documentation is required here, only the 12 digit Aadhaar number. UAM can be filed on a self declaration basis.
ZED Scheme encourages the manufacturers to manufacture high quality goods for export. If the standards are met, the exporters will be eligible for concessions and if they are not up to the mark, they will not be exported and returned back to India.
Benefits of Udyog Aadhaar Registration or Udyam Certificate
In the banking sector, you can get the benefits of MSMED Act 2006 only with the MSME registration. The benefits of this registration are as follows :
- Concession in electricity bills
- Increase in chances of getting government tenders.
- Refraining from asking security deposits.
- Getting cheaper bank loan easily
- Benefits of reservation
- Reduced fee for filing patents and trademark registration for getting protection under the rights of intellectual properties.
- Industrial promotion subsidy
Types of MSME Registrations in India
Provisional MSME Registration in India
The first type of the MSME registration is provisional which is given out during the pre investment period. The enterprise qualifies for the following at this stage:
- Getting facilities for land, accommodation, etc.
- Getting approvals and NOCs.
- Getting clearances easily from regulatory authorities.
The Provisional SSI Registration Certificate (PRC) makes sure that the small enterprises get loans and capital from financial institutions and banks under priority sector lending.
Permanent MSME Registration in India
The second type of MSME registration is permanent which is given to functional industrial units. Even though this act is not compulsory in nature, it is only beneficial for the enterprises to have support from the government.
Guidelines for Online SSI/MSME Registration in India
Application for Provisional Registration
Provisional Registration Certificate (PRC) is allocated to new ventures without field enquiry. This certificate has to be applied for before the operation at the unit begins. It is a quick procedure and is very beneficial for the enterprises.
Starting the business
The organisation has to start operations within the 5 years when the PRC is valid. In case the business is not able to commence operations in those 5 years, a new application for PRC has to be filed.
Applying for permanent SSI Registration
Once the operations begin, the enterprise can apply for a permanent certification at the Ministry of MSMEs. Specific conditions have to be met and compulsory documents also have to be submitted for permanent SSI registration.
- The organisation has already obtained statutory and administrative clearances.
- The organisation doesn’t violate any rules and regulations.
- The value of the machinery in the organisation doesn’t exceed the prescribed limits.
- There shouldn’t be any proof of the enterprise not being owned, a subsidiary of or controlled by any other industry.
We can help you in the process and make the process hurdle free for you.
List of Documents required for the SSI/MSME Registration in India
- Address proof of place of business
- Partnership Deed/MoA and AoA
- Copy of sales and purchases bill
- Copy of licenses and bills of the purchased machinery
- Firms which are listed in the schedule – lll of the Industrial Licensing Exemption Notification don’t need Industrial License. All other enterprises should obtain it for the PRC application.
- All the statutory and administrative clearances have to be obtained for the registration in order to prove that none of the restrictions are being violated.
Opening of Current Account
A Current Account or Demand Deposit Account are used by businesses for a higher number of transactions, including deposits, contra transactions as well as withdrawals. All this helps a business to function smoothly.
Eligibility Criteria for Udyog Aadhaar or Udyam Registration in India
Proprietorships, Hindu Undivided Family (HUF), One Person Companies (OPC), Partnership Firms, Public Limited Companies, Private Limited Companies , Production Companies, Co operative societies, Limited Liability Partnerships (LLP) or any other undertaking can get Udyog Aadhaar registration done.
The manufacturing enterprise should have had an investment of less than Rs 25 lakhs for plant and machinery. The service enterprise should have an investment of less than Rs 10 lakhs.
The manufacturing enterprise should have had an investment of anything between Rs 25 lakhs and Rs 5 crores in plant and machinery. The service enterprise should have an investment of anything between Rs 10 lakhs and Rs 2 crores.
The manufacturing enterprise should have an investment of anything between Rs 5 crores and Rs 10 crores. The service enterprise should have an investment of anything between Rs 2 crores and Rs 5 crores.
This is how we can help with the MSME Registration in India
We can get the MSME registration in India done in 10-20 days (excluding the Government’s approval time)
For the first 2 days, you have to submit the following documents with us:
- PAN Cards
- Rent agreement of office space
- Electricity bill
- Identity proof of all directors/partners/proprietor
- Address proof of all directors/partners/proprietor
Additional documents for Private limited companies:
- Certificate of incorporation
- MoA and AoA
- Form 18
- Form 32
Additional documents for Partnerships:
- Partnership Agreement
Over the next 2 days, your documents will be verified and submitted along with the application. In specific states, additional paperwork such as a sales bill of machinery might be needed for municipal clearance.
After submission, within 15 days a Provisional Certificate is issued for a period of 5 years if production hasn’t started. This becomes permanent when the unit starts functioning.
Frequently Asked Questions about Udyog Aadhaar Registration in India
Is MSME Registration Compulsory in India
The scheme is voluntary in nature. However availing registration under MSME can be very advantageous due to enlisted benefits.
What are the Requirement of Udyog Aadhaar Card in India
For registration under the Udyog Aadhaar scheme in India, Aadhaar card is compulsory. In case an applicant is other than the proprietor, the Aadhaar card of the partner and the director will be required.
How is investment in Plant and Machinery computed in India
The investment in Plant and Machinery should be the original value irrespective of whether the Plant and
Machinery are new or second hand. In respect of imported machinery, all costs associated with importation as specified in the Customs Act are to be included.
Is Provisional Registration available for Udyog Aadhaar in India
Yes, Provisional Registration can be done and has a validity of 5 years. It may be reapplied at the end of 5 years if business is still not operational. A permanent license can be obtained as the business turns operational.
What is the Validity of the Udyog Aadhaar Certificate in India
There is no expiry for UDYOG AADHAAR CERTIFICATE, till the entity is operational and functioning properly.
Are collaterals required for availing bank loans: MSME Borrowers can avail collateral free loans from banks and financial institutions.
How to download and Print Udyog aadhaar Certificate in India
One can click on the link https://udyamregistration.gov.in/UA/PrintAcknowledgement_Pub.aspx and download or print the Udyog Aadhaar Registration Certificate in India
Is it required to have Credit Rating
Credit Rating is a quantified assessment of the creditworthiness of a borrower in terms of financial capabilities. Credit Rating for MSME is not compulsory, however it is in the interest of MSME to get credit rating done as it enhances value.
Keeping in mind the best interests of the Environment a Physical certificate is not issued. The online certificate is sent in the Email and is valid everywhere.