Online MSME Registration | Udyog Aadhar
Every Micro, Small or Medium Enterprises must enroll itself for issuance of Udyog Aadhar, this enrollment is valid for a lifetime and can be obtained by those units or enterprises which have already started operations and not for the enterprise which is planned to be started.
To promote the growth of Micro, Small & Medium Enterprises, the government of India gives various concessions and extends financial assistance exclusively to the units or enterprises which qualifies to be a micro, small and medium enterprises. The Micro Small & Medium Enterprises Development Act 2006 makes it mandatory for MSME to register themselves with government and to obtain Udyog Aadhar for availing benefits provided under MSME Development Act. The terminology like MSME, SSI or Udyog Aadhar is one and same thing. In other words, there is only one registration which a micro, small and medium enterprises has to obtain and that is UDYOG AADHAR. MSME is the backbone of the modern Indian economy and is considered as the growth engine for equitable and sustainable economic development of the country. Under MSME all kinds of enterprises can obtain registration, like manufacturers the service providers are also eligible for MSME benefits. Hence they are also required to get UDYOG AADHAR Registration.
Meaning of Micro, Small and Medium Enterprises Under MSME Act
Documentation of MSME Registration
Benefits of Registration as MSME or Udyog Aadhar
EASY AVAILABILITY OF LOAN
Every MSME whether in manufacturing sector or service sector is entitled to collateral or mortgage free loan from Bank for an amount up to Rs. 1 Crore through SIDBI under Credit Guarantee Scheme.
GOVT. PROCUREMENT PRIORITY
Central or state government departments have been mandated to extend priority treatment to MSME while procuring goods or services for the consumption of goods or services for public purposes.
While availing bank overdraft facility from a bank, MSME has a reason to smile as Banks need to offer 1% less interest rate on the overdraft extended to the MSME which is registered with Udyog Aadhar.
TA registered MSME can avail concessional rate of electricity for their unit by making a written application along with the certificate issued after registration as MSME ( Udyog aadhar) to the electricity department.
SPEEDY RECOVERY OF DUES
The MSME is required to be paid as per the agreement between parties or within 45 days if there is no understanding between them. Failure entitles the MSME for an interest which is three times the bank rate.
REBATE IN TAXES
MSME registered under the MSMED Act, 2006 is eligible for many tax incentives and exemption both under the Direct Taxes and Indirect Taxes including GST such as capital gain subsidy schemes under income tax act.
50% DISCOUNT ON IP PROTECTION
While filing the trademark application in any class or multiple class, the MSME enjoys 50% less fee of filing in comparison to other corporates or firm. Similarly while filing patent 50% discount is granted to the MSME.
MSME CONCILIATION CENTRE
For faster resolution of disputes where MSME is struggling to recover money from other persons, there is a provision of MSME reconciliation centre which may provide for a speedy resolution of dispute and faster recovery.