The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is given below.
The Ministry of Micro, Small and Medium Enterprises, a branch of the Government of India, is the apex executive body for policy making and administering laws relating to micro, small and medium enterprises in India. Based on investment and turnover criteria a business falls in one of the three categories of Micro, Small or Medium.
If a business crosses the specified ceiling limits for its present category in either of the two criteria of investment or turnover, it will stop to fall in that category and be placed in the next higher category but no business shall be placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.
Micro Enterprise; an enterprise where the investment in plant and machinery does not exceed Rs. 1 Crore & turnover less than Rs. 5 Crore is considered as Micro enterprise according to recent MSME guidelines.
Small Enterprise; an enterprise where the investment in plant and machinery is less than 10 Crore & turnover less than Rs. 50 Crore is considered a small enterprise according to recent MSME Guidelines.
Medium Enterprise; an enterprise where the investment in plant and machinery is less than Rs. 50 crore & turnover less than Rs. 250 Crore is considered as Medium enterprise according to recent MSME guidelines..
Although, there is no compulsion to get MSME Registration but is always advised to do so as it provides lots of benefits to the enterprises registered under the MSME Act. It gives you an identity as it is a certificate provided by the Government of India and will save you from a lot of inconveniences later on. You can apply for MSME easily through the Government’s online portal of Udyam Registration.
As said above, SSI/MSME registration is totally voluntary. Businessmen and entrepreneurs usually get this done to utilize the advantages offered under it. The registration process is quite easy and simple.
Government charges no fees for Udyam/ MSME registration in India. Apart from that a minimum consulting fee is also attached with the final MSME registration fee if you get it done through any service provider. We at CAONWEB, have a full fleet of MSME experts who will look forward to all your queries.
All existing businesses registered under EM–Part-II or UAM shall register again on the Udyam Registration portal of Government on or after the 1st day of July, 2020. All those registered till 30th June, 2020, shall be re-classified as per latest notification of Government The existing registered MSME prior to 30th June, 2020, shall continue to be valid only for a period up to the 31stday of March, 2021.
MSMEs are recognized by all the institutions and banks. Special schemes are drafted to recognize them as well. Banks prefer MSMEs instead of normal enterprises to lend loans. The possibility of getting a sanctioned loan is much higher in the case of Udyog Aadhaar Registration. Bank loan interest rates will also be lower.
Once you have registered your company under UDYAM by following the process mentioned above, you will receive a UAM No. which will be unique for your organization.
Check MSME registration status by checking at Udyam Portal.
Udyog Aadhaar is a 12 digit unique identification number issued by the MSME. The idea behind issuing Udyog Aadhaar is similar to that of Aadhaar which is issued by UIDAI viz. to authorize the identity of an individual.
It becomes imperative on the part of the government to offers certain benefits to this sector, therefore Udyog Aadhaar registration becomes mandatory. The registration process of Udyog Aadhaar is very convenient.
Visit the udyam official website >>> Fill up the registration form >>> Upload the necessary documents >>> Document verification in process >>> Udyam registration certificate will be issued after complete verification.
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No. If you have multiple activities like service, trading, manufacturing, you should include all info in one registration filing application.