Udyam (MSME) Registration & benefits
As per the notification issued by the ministry of micro small medium enterprises (“MSME”) on 1st June 2020, MSMEs will now be known as “Udyam” and the enrolment or the registration process will now be called as Udyam Registration.
An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely: --
- A micro-enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
- A small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and
- A medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
Any person who intends to establish an MSME may file for the Udyam Registration.
On registration, an enterprise (referred to as “Udyam” in the Udyam Registration portal) will be assigned a permanent identity number to be known as “‘Udyam Registration Number”.
An E-certificate, namely “Udyam Registration Certificate”, shall be issued on completion of the registration process. Each certificate will have a unique UR Code through which the exact web-page of the concerned MSME can be accessed – this will bring Ease of Doing Business (EODB)
All enterprises registered under the earlier guidelines e.g. EM–Part-II (Entrepreneurs Memorandum) or UAM (Udyog Aadhaar Memorandum), will have to re-register themselves for the Udyam Registration by verifying/seeding the PAN.
Whoever intentionally misrepresents or attempts to suppress the self-declared facts and figures appearing in the Udyam Registration or update-process shall be liable to such penalty as specified under section 27 of the Act.
Benefits of Udyam Registration:
- Bank Loans – Collateral free & interest rate subsidy (depending on the eligibility criteria of Udyam enterprise)
- Protection against delayed payments, against material/services supplied
- Integration with GeM (Govt. E-Marketplace), CPPP (Central Public Procurement Portal) and E-TReDS (Trade Receivable Discounting/ Financing).
- Government security deposit (EMD) waiver (Useful while participating tenders)
- MSME Registered entity gets eligible for CLCSS (credit linked capital subsidy scheme)
- Electricity bills concession
- Stamp duty and registration fees waiver
- ISO certification fees reimbursement
- Credit-rating fees subsidy
- Patent registration subsidy
- International trade fair special consideration