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SSI/MSME Registration: What You Need to Know from udyam's blog

MSME registrationcan be completed entirely online, and with a little help, the process can be made much easier.

The MSMED Act was enacted by the Indian government to support small-scale industries, which are critical to the country's socio-economic development.

This Act was created to maintain track of all the industries that have been designated as MSME or SSI. This record aids in the hiring of individuals and also provides incentives.

The MSMED Act covers the following organizations:

  • Micro, small, and medium-sized businesses (MSME)

  • Small-scale businesses (SSI)

The following are the registration restrictions for different sectors under the act:

  • An MSME is a manufacturing company with less than Rs 10 crores invested in plants and machinery.

  • An MSME is a service company with a capital investment of less than Rs 5 crore.

  • When a business exceeds the sum set as the top limit in the future, it is no longer regarded as an MSME.

A corporation can gain a variety of benefits from the Government of India with an SSI registration certificate, including:

  • Interest rates are lower now.

  • Exemption from excise duty

  • Subsidies in taxes, capital investments, and the cost of electricity are all factors to consider.

  • More help is available

SSI/MSME Registration was replaced by the new Udyog Aadhaar:

A new act called Udyog Aadhaar was enacted in 2015 to simplify the registration process for small and medium-sized businesses. MSME has been superseded by Udyog Aadhaar, and registration is now done online with only the Aadhaar card as a requirement.

MSME Schemes Under Udyog Aadhaar:
  • Memorandum MSME Schemes Under Udyog Aadhaar (UAM)

The MSMED Act of 2006 mandated the creation of a simple one-page form. The Aadhaar number, which is 12 digits long, is all that is necessary. On a self-declaration basis, UAM can be filed.

  • Scheme ZED

Manufacturers are encouraged to produce high-quality goods for export under the ZED Scheme. Exporters will be eligible for concessions if the standards are reached, but if they are not, they will not be exported and would be returned to India.

Udyog Aadhaar Registration or Udyam Certificate Benefits:

Only with MSME registration can you access the benefits of the MSMED Act 2006 in the banking sector. 

The following are the advantages of registering:

  • Electricity bill reductions

  • Increased likelihood of being awarded federal contracts.

  • Refusing to request security deposits.

  • Obtaining a less expensive bank loan is simple.

  • Reservation Benefits

  • Reduced fees for filing patents and trademark registration in order to obtain intellectual property protection.

  • Subsidy for industrial promotion

In India, there are various types of MSME registrations:

India's Provisional MSME Registration

Provisional MSME registration is the initial category, which is issued during the pre-investment stage. At this point, the company is eligible for the following:

  • Obtaining land, lodging, and other facilities

  • Obtaining NOCs and clearances.

  • Obtaining regulatory permissions without difficulty.

The Provisional SSI Registration Certificate (PRC) ensures that small businesses receive loans and capital from financial institutions and banks as part of the priority sector lending program.

In India, permanent MSME registration is required:

The second sort of MSME registration is that which is provided to operational manufacturing enterprises and is permanent. Even though this legislation is not mandatory, it is in the best interests of the businesses to have government backing.

In India, how is an investment in plants and machinery calculated?

Regardless of whether the Plant and Machinery are new or used, their investment should be at their original value. All costs related to the importation of machinery, as stipulated in the Customs Act, must be included.

Suggested Read-Print Udyam Registration Certificate

Is Provisional Registration for Udyog Aadhaar accessible in India?

Yes, Provisional Registration is possible and has a 5-year validity period. If the firm is still not functioning at the end of the five years, it may be reapplied. Once the business is up and running, a permanent license can be obtained.

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By udyam
Added Aug 5 '21



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