The Micro, Small, and Medium Enterprises Development Legislation, 2006 is an act passed by the Indian Parliament. According to the legislation, “any buyer who fails to make payment to MSMEs within agreed-upon terms or within a maximum of 45 days will be liable to pay monthly compounded interest at three times the bank rate announced by the RBI.”
According to the (MSMED) Act, businesses are divided into two categories:
Manufacturing Enterprises – businesses that manufacture or produce items in any sector.
Service Enterprises – businesses that provide or offer services.
MSME definition based on plant and machinery investment and turnover:
Manufacturing Sector and Service Sector:
Microbusinesses – Plant and machinery investments of no more than one crore and a turnover of no more than five crores
Small Businesses – Plant and machinery investments of no more than 10 crores and a turnover of no more than 50 crores
Medium-sized Businesses – Plant and machinery investments of no more than 20 crores and a turnover of no more than 100 crores
The government has made it easier for micro, small, and medium-sized businesses to register in order to give them with much-needed incentives for protection and growth. As per the recent notification the udyog aadhaar is changed to udyam registration.
Given the Finance Minister’s far-reaching announcements about putting a whopping sum of 3 lakh crores at the disposal of MSMEs with a 12-month moratorium and no requirement of collateral security to give a boost to the MSME sector, it becomes critical for MSMEs to get themselves registered without fail for their own long-term benefits.
Benefits of Registration as MSME
- Bank with no collateral a loan of up to 5 crores
- Policies restricting access to the manufacturing/production sector
- Particular attention should be paid to foreign trade fairs
- Octroi Advantages
- Stamp Duty and Registration Fees Are Waived
- Exemption from Direct Tax Laws
- Subsidy for Bar Code Registration
- NSIC Performance and Credit Rating Subsidy
- Eligible for the IPS subsidy
- Counter Guarantee from the Government of India via CGSTI
- Protection against payment delays
- Banks’ interest rates are being reduced.
- Waiver of Government Security Deposit
- Electricity bill reductions
- ISO Certification Reimbursement
- Scheme for Excise Exemption
- Preference in purchasing
All of the following benefits are only available to us if our unit/proposed unit is registered as an MSME.
Details required for Registration as an MSME
1. Name and Type of Enterprise / Business, as well as Date of Business Inception
2. A copy of the PAN, the organization’s turnover, and the number of people employed by the enterprise
3. Plant location and office address; include office address if it is different from plant location.
4. Aadhar Card copy, Applicant’s email address, and Applicant’s mobile phone number connected to Aadhar Card
5. A copy of the organization’s cancelled check
6. Main Line of Business and NIC Organization’s 2 digit business activity code
7. Invest in Plant & Machinery / Equipment and Equipment, etc. to get your firm off to a good start.
We should take care of our clients and make sure they don’t have to go anyplace else to get their registration done since we are capable.
Furthermore, according to the Ethical Standard Board’s Recent Decisions/Announcements —
“A CA company may register on Udyog Aadhar, a Ministry of Micro, Small, and Medium Enterprises online portal.”
Please have all of your information ready and go to the website “Udyog Aadhar” (MSME Registration) to complete the registration. For registration, no cost is required.