Micro Small and Medium Enterprises (MSME) has always been a backbone of Indian Economy. Around 63.4 million units of MSME all over India. MSME(s) contribute around 6.11% of the GDP form the manufacturing sector and 24.63% of the GDP form the service sector. Around 120 million employment is generated by these enterprises.
By the new slogan “Vocal for the Local” by our respected Prime Minister Mr. Narendra Modi which has strengthened his vision of “ATMA NIRBHAR BHARAT” i.e. Self-reliant India and the 20 Lakh Crore economic package came like Elixir for the struggling Indian GDP. The MSME(s) got an important role in this mission of self-reliant India.
Only Manufacturing or Service Enterprises can be registered under the MSME.
The Classification limit for both manufacturing and service sector are the same.
|Investment < Rs. 1 Cr.
Turnover < Rs. 5 Cr.
|Investment < Rs. 10 Cr.
Turnover < Rs. 50 Cr.
|Investment < Rs. 50 Cr.
Turnover < Rs. 250 Cr.
i. 50% Subsidy on Patent or Trademark Registration
The Enterprises registered under the MSME get a hefty subsidy of 50% in the government fee of the patent and trademark registration.
ii. Collateral Free Loans from Bank
The Government of India has launched the Credit Guarantee Fund Scheme (CGS) for providing the Micro and Small Enterprises collateral-free credit to them. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is set up by The Ministry of Micro, Small and Medium Enterprises, Government of India, and Small Industries Development Bank of India (SIDBI) for the implementation of CGS.
Emergency Credit Line Guarantee Trustee Company (ECLGS) is launched by the Government of India as a booster to the MSME sectors bringing 3 Lakh Crore additional funding at a concessional rate of interest of 9.25%. The National Credit Guarantee Trustee Company (NCGTC) will provide 100% guarantee coverage to eligible MSME and MUDRA borrowers in the form of Guarantee Emergency Credit Line.
iii. Relief of 1% on the interest rate of the Overdraft Facility
All the enterprises that have registered under the MSME can avail the exemption of 1% on the interest rate of the Overdraft Facility provided by the Bank. The MSME enterprise needs to make an application for the same into the bank. But this is not the same in all the banks the rate may differ bank to bank.
iv. Electricity bill Concession
The enterprises registered as an MSME may after making an application to the Electricity Department get concession in the electricity bill.
v. ISO application fees reimbursement
Taking an ISO certification amount to a heavy expense for an organization. But the MSME are benefited by the government as the MSME enterprises get the reimbursement of the ISO fees paid by them by making an application.
vi. Privilege in Government Tenders
By amending the General Financial Rules 2017 the government notified that the global tenders will be disallowed in government procurement up to Rs. 200 crores. This is a big boost for the MSME enterprises as they need not to compete with a global organization and it will help them grow.
There are many more benefits provided to MSME enterprises from time to time by the government.
Step 1 – Go to the Site of UDYOG AADHAAR https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx
Step 2 – Enter the AADHAAR No. and click on generate OTP. The OTP will be sent to the Mobile Number linked to your AADHAAR.
Step 3 – Fill the details as required in the registration form
STEP 4 – Click on Submit and Enter the OTP
Step 5 – After OTP validation your MSME Certificate will appear on the screen with The UAM No.
Yes, AADHAR no. is necessary for doing Online MSME Registration.
There is no Amount charged for the MSME Registration.
MSME Registration is Valid for the Lifetime.
Yes, Both New as well an existing Businesses can apply for MSME Registration.