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Unlocking Solutions: Understanding MSME Samadhaan and Required Documents
In the world of micro, small, and medium enterprises (MSMEs), navigating financial challenges can sometimes feel overwhelming. However, with initiatives like MSME Samadhaan in place, there’s a ray of hope for resolution and growth. MSME Samadhaan serves as a platform designed to address grievances related to delayed payments faced by MSMEs.
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Empowering Growth: A Guide to Harnessing Government Schemes and Subsidies through MSME Registration in India
Introduction:
Micro, Small, and Medium Enterprises (MSMEs) form the backbone of the Indian economy, contributing significantly to employment generation and industrial growth. Recognizing the pivotal role of MSMEs, the Indian government has designed various schemes and subsidies to foster their development. This guide explores how MSMEs can unlock a plethora of opportunities by registering and strategically leveraging government initiatives.
Understanding MSME Classification:
1.1 Significance of MSME Classification
Before delving into government schemes, it's essential to comprehend the criteria for classifying businesses as micro, small, or medium enterprises. These classifications are based on the amount invested in plant and machinery or equipment and the turnover of the enterprise. Accurate classification is crucial as it determines eligibility for specific benefits.
The MSME Registration Process:
2.1 Online Registration on the Udyam Portal
The Udyam Registration portal (https://udyamregistration.gov.in/) is the gateway for MSME registration. Business owners can navigate the user-friendly interface and provide necessary details, including PAN, Aadhaar, and other relevant information. The online registration process is streamlined, making it accessible for entrepreneurs across the country.
2.2 Offline Registration at District Industries Centres (DIC)
For those who prefer traditional methods, offline registration can be pursued at District Industries Centres (DIC) or local MSME offices. Business owners can obtain the required forms, submit a duly filled application, and provide supporting documents for verification.
2.3 Documentation for MSME Registration
Critical documentation includes the Aadhaar card of the business owner(s), PAN card of the business, address proof, and details of plant and machinery or equipment. Ensuring the completeness and accuracy of these documents is crucial for a smooth registration process.
Benefits of MSME Registration:
3.1 Financial Assistance and Credit Facilities
MSME registration opens doors to financial assistance and credit facilities at favorable terms. Recognizing the importance of these enterprises, financial institutions offer loans with lower interest rates, easing the financial burden on entrepreneurs.
3.2 Market Access and Government Procurement Preferences
One of the significant advantages of MSME registration is the preferential treatment in government procurement. MSMEs are often given priority in government tenders, providing them with a valuable opportunity to secure contracts and expand their market reach.
3.3 Technology Upgradation and Subsidies
MSMEs are the driving force behind innovation and technology adoption. The government, through various schemes, encourages MSMEs to upgrade their technology by offering subsidies for the adoption of new and advanced processes. This not only enhances the efficiency of the enterprises but also contributes to the overall growth of the sector.
Key Government Schemes and Subsidies
4.1 Credit Linked Capital Subsidy Scheme (CLCSS)
The CLCSS is a flagship scheme aimed at promoting technology upgradation by providing capital subsidies to MSMEs. This scheme facilitates access to credit for purchasing new machinery and equipment, thereby enhancing productivity and competitiveness.
4.2 Pradhan Mantri Employment Generation Programme (PMEGP)
Designed to promote self-employment, the PMEGP is a credit-linked subsidy program that encourages entrepreneurs to set up micro-enterprises by providing financial assistance. This scheme not only creates employment opportunities but also fuels economic growth at the grassroots level.
4.3 Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE)
The CGMSE is a game-changer for MSMEs, offering collateral-free credit facilities. Entrepreneurs can avail of loans without providing traditional collateral, making it easier for them to access the much-needed capital for business expansion.
Udyam Registration: Revised Criteria
5.1 Micro, Small, and Medium Classifications
As of July 1, 2020, the government revised the criteria for classifying enterprises. Micro-enterprises are those with investments up to Rs. 1 crore and turnover up to Rs. 5 crore. Small enterprises can have investments up to Rs. 10 crore and turnover up to Rs. 50 crore, while medium enterprises can have investments up to Rs. 50 crore and turnover up to Rs. 250 crore. Adhering to these classifications is vital for accessing various schemes and subsidies.
Supportive Institutions
6.1 District Industries Centres (DIC)
District Industries Centres play a pivotal role in supporting MSME development. They act as local agencies that provide guidance, information, and assistance in navigating the intricacies of government schemes. Entrepreneurs are encouraged to engage with their local DIC for personalized support.
6.2 National Small Industries Corporation (NSIC)
The NSIC is another key institution dedicated to fostering the growth of MSMEs. It offers a range of support services, including marketing assistance, raw material assistance, and credit facilitation. MSMEs can leverage the expertise of the NSIC to enhance their competitiveness in the market.
Technology and Quality Upgradation Support
7.1 Lean Manufacturing Competitiveness Scheme (LMCS)
To boost competitiveness, the government introduced the LMCS, focusing on promoting lean manufacturing techniques. MSMEs can avail of financial support to implement these techniques, leading to improved efficiency and reduced operational costs.
7.2 Quality Management Standards & Quality Technology Tools (QMS/QTT)
Attaining product certifications is crucial for gaining consumer trust and accessing new markets. The government supports MSMEs in obtaining certifications through the QMS/QTT scheme, emphasizing the importance of quality in manufacturing processes.
Research and Development (R&D) Support
8.1 Support for Entrepreneurial and Managerial Development of MSMEs
Recognizing the need for continuous learning and skill development, the government provides support for entrepreneurial and managerial development. MSMEs can access training programs to enhance their leadership and management skills, fostering sustainable growth.
8.2 Financial Support to MSMEs in ZED Certification Scheme
The Zero Defect Zero Effect (ZED) Certification Scheme encourages MSMEs to adopt environmentally friendly manufacturing processes. Financial support is provided to enterprises striving for ZED certification, aligning business practices with global sustainability standards.
Digital MSME Scheme
9.1 Assistance for Technology Upgradation
In the digital age, technology plays a pivotal role in the success of businesses. The Digital MSME scheme aims to assist MSMEs in adopting information and communication technology (ICT). Financial support is provided to encourage the integration of digital tools for improved operational efficiency.
9.2 Importance of Digital Transformation
Embracing digital transformation is not just a trend but a necessity for MSMEs looking to stay competitive. The Digital MSME scheme empowers businesses to streamline processes, reach a wider audience, and adapt to the changing business landscape.
Export Promotion and Market Development
10.1 Market Development Assistance Scheme for MSMEs
Global markets offer immense opportunities for MSMEs to expand their reach. The Market Development Assistance Scheme provides financial support for participating in international trade fairs and exhibitions. This exposure facilitates networking, collaboration, and the exploration of new business avenues.
10.2 Strategies for Market Expansion
Entering international markets requires strategic planning. MSMEs can leverage the Market Development Assistance Scheme to devise and execute market expansion strategies, ensuring a sustainable presence on the global stage.
Skill Development Initiatives
11.1 Technology and Quality Upgradation Support under CLCSS
Skill development is at the core of sustainable business growth. The CLCSS not only provides financial support for technology upgradation but also emphasizes skill development. MSMEs can invest in training programs to enhance the capabilities of their workforce.
11.2 The Role of Skill Enhancement
A skilled workforce is an invaluable asset for any business. MSMEs can benefit from government support by focusing on skill enhancement, creating a workforce that is adaptable, efficient, and capable of driving innovation.
Challenges and Solutions
12.1 Lack of Awareness
Challenge: Many MSMEs are unaware of the numerous government schemes available to them.
Solution: Conduct awareness campaigns through government agencies, industry associations, and digital platforms. Establish a dedicated information dissemination system to keep MSMEs informed about the latest opportunities.
12.2 Complex Application Processes
Challenge: Cumbersome application procedures can discourage MSMEs from applying for schemes.
Solution: Simplify application processes by introducing user-friendly online platforms, providing step-by-step guides, and offering dedicated helplines or assistance centers to address queries.
Monitoring and Evaluation
13.1 Performance and Credit Rating Scheme for MSMEs
To enhance creditworthiness, the government has introduced the Performance and Credit Rating Scheme. MSMEs can undergo credit rating assessments, showcasing their financial stability and reliability to potential investors and lenders.
13.2 Importance of Continuous Evaluation
MSMEs should view monitoring and evaluation as ongoing processes. Regularly assess the impact of government schemes on business operations, make necessary adjustments, and stay informed about updates and changes to maximize benefits.
MSME registration is a crucial step for small business owners looking to unlock a plethora of benefits and opportunities. From financial support and government incentives to market access and networking opportunities, the advantages of being a registered MSME are manifold. Governments worldwide are recognizing the significance of MSMEs in driving economic growth and employment, and as a result, initiatives and support systems for small businesses continue to evolve. Small business owners should seize the opportunity to register as an MSME to position their enterprises for sustainable growth and success in an increasingly competitive business landscape.
Conclusion:
In conclusion, MSME registration in India is not just a regulatory requirement; it is a gateway to a myriad of opportunities provided by the government. By understanding the classifications, navigating the registration process, and strategically leveraging the array of schemes and subsidies available, MSMEs can position themselves for sustainable growth. The key lies in staying informed, actively participating in supportive networks, and embracing the spirit of innovation and continuous improvement that defines successful MSMEs in India. The government's commitment to fostering the growth of these enterprises reflects a collective effort to build a robust and resilient economic foundation for the nation.
Learn more from: https://msme-registration.in/
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The right way to grow your business!
MSME Registration vs. Udyam Registration: Key Differences for Your Business
In India, the government has introduced various schemes and initiatives to promote the growth of small and medium-sized enterprises (SMEs) and micro, small, and medium enterprises (MSMEs). These initiatives aim to provide support, incentives, and recognition to businesses operating in this sector. Two of the most prominent registration options available for these businesses are MSME Registration and Udyam Registration. While they serve similar purposes, they have distinct differences that can significantly impact your business. In this article, we will delve into the key differences between MSME Registration and Udyam Registration, helping you make an informed choice for your business.
Understanding the Importance of MSMEs in India
Before we explore the differences between MSME Registration and Udyam Registration, it's essential to understand the significance of MSMEs in the Indian economy. Micro, Small, and Medium Enterprises (MSMEs) play a pivotal role in driving economic growth, creating employment opportunities, and fostering entrepreneurship in the country. They contribute significantly to India's GDP and are known for their agility and ability to adapt to changing market dynamics.
Recognizing the importance of MSMEs, the Indian government has been proactive in implementing policies and schemes to support their growth. MSME Registration and Udyam Registration are two such initiatives that provide businesses with several benefits.
MSME Registration: A Quick Overview
MSME Registration is a process that involves the registration of your business as a micro, small, or medium enterprise with the government. The primary purpose of MSME Registration is to provide businesses with a formal recognition of their status as an MSME, and it enables them to avail various benefits and incentives. It is an optional registration that is typically sought by businesses looking to tap into the advantages offered to MSMEs.
Here are some of the key benefits of MSME Registration:
1. Access to Credit: MSMEs with a valid MSME Registration certificate can avail loans at lower interest rates and with reduced collateral requirements from banks and financial institutions.
2. Government Subsidies: The government offers subsidies and incentives to registered MSMEs, making it easier for them to invest in technology and infrastructure upgrades.
3. Preference in Government Tenders: MSMEs often receive preferential treatment in government procurement processes, giving them a competitive edge.
4. Income Tax Exemptions: Some MSMEs may be eligible for income tax exemptions or deductions under various government schemes.
5. Ease of Compliance: Registered MSMEs benefit from simplified compliance procedures, making it easier to run their businesses.
6. Priority Lending: Priority sector lending from banks can be accessed by registered MSMEs, aiding in their financial stability.
Udyam Registration: A New Paradigm
Udyam Registration is a relatively recent development that supersedes the earlier process of MSME Registration. Introduced in September 2020, Udyam Registration is an online registration portal for MSMEs. The key objective of this registration is to simplify the registration process and ensure that more businesses can benefit from MSME status.
Here are the essential features of Udyam Registration:
1. Online Process: Udyam Registration is entirely online, making it a more convenient and accessible option for businesses.
2. Aadhar Integration: Businesses can register using their Aadhar number, simplifying the registration process further.
3. Self-Declaration: One of the significant differences between Udyam and MSME Registration is that Udyam relies on self-declaration by the business owner, reducing the need for extensive documentation.
4. No Restriction on Investment: Udyam Registration removes the previous distinction between manufacturing and service-based industries, making it more inclusive.
5. Pan India Validity: The Udyam Registration certificate is valid across India, ensuring uniformity in benefits and recognition.
6. Upgradation: Udyam Registration also offers a process for businesses to upgrade their status from micro to small to medium as they grow.
Key Differences Between MSME Registration and Udyam Registration
Now, let's delve into the key differences between MSME Registration and Udyam Registration to help you understand which one is right for your business:
1. Documentation and Self-Declaration:
- MSME Registration: The traditional MSME Registration process involves the submission of various documents, such as business PAN, Aadhar, and financial statements. It can be more time-consuming due to the documentation requirements.
- Udyam Registration: Udyam Registration is based on self-declaration by the business owner, significantly reducing the documentation burden. This makes it more accessible for businesses.
2. Investment Limit:
- MSME Registration: MSME Registration had investment limits for both manufacturing and service-based industries. For micro-enterprises, the limit was up to ₹25 lakhs, for small enterprises, up to ₹5 crores, and for medium enterprises, up to ₹10 crores.
- Udyam Registration: Udyam Registration removes the investment limit distinction, allowing businesses of all types and sizes to register.
3. Aadhar Integration:
- MSME Registration: While Aadhar was used in MSME Registration, it was not the primary mode of registration.
- Udyam Registration: Udyam Registration emphasizes Aadhar integration, making it easier for business owners to complete the registration process.
4. Categorization:
- MSME Registration: Under MSME Registration, businesses were categorized as micro, small, or medium based on their investment in plant and machinery or equipment.
- Udyam Registration: Udyam Registration uses different criteria for categorization, considering turnover instead of investment.
5. Online Process:
- MSME Registration: The traditional MSME Registration process was often carried out through government offices and required physical visits.
- Udyam Registration: Udyam Registration is entirely online, making it more convenient and accessible.
6. Validity:
- MSME Registration: MSME Registration had to be renewed periodically, and the validity period varied.
- Udyam Registration: Udyam Registration certificates are valid for a lifetime, providing long-term benefits.
7. Upgradation:
- MSME Registration: MSME Registration did not have a clear process for businesses to upgrade their status as they grew.
- Udyam Registration: Udyam Registration offers a simple process for businesses to upgrade their status from micro to small to medium as they expand.
8. Coverage:
- MSME Registration: MSME Registration was available to businesses in specific sectors and industries, excluding certain service-based businesses.
- Udyam Registration: Udyam Registration is more inclusive and covers a broader range of industries, including service-based businesses.
9. Recognition:
- MSME Registration: MSME Registration was widely recognized and accepted, but the benefits might vary from one state to another.
- Udyam Registration: Udyam Registration aims to provide uniform recognition and benefits across India, as it is a nationwide program.
Choosing the Right Registration for Your Business
Now that you are aware of the key differences between MSME Registration and Udyam Registration, the crucial question is, which one is right for your business? The choice depends on several factors, including your business type, size, and objectives. Here are some guidelines to help you decide:
1. Udyam Registration for Sim
plicity: If you are looking for a more straightforward and online registration process with reduced documentation, Udyam Registration is the way to go. It is particularly beneficial for startups and small businesses.
2. MSME Registration for Existing MSMEs: If your business is already registered under the traditional MSME Registration and you are satisfied with the benefits and recognition it provides, you may not need to transition to Udyam Registration immediately.
3. Udyam Registration for Inclusivity: If your business is a service-based enterprise or falls outside the traditional investment limits, Udyam Registration offers a more inclusive option.
4. Upgradation with Udyam: If your business has grown and you wish to upgrade your MSME status, Udyam Registration provides a mechanism to do so.
5. Consultation with Experts: If you are uncertain about which registration is best for your specific business, consider seeking advice from legal and financial experts who can provide tailored guidance.
6. Compliance and Documentation: Keep in mind that Udyam Registration is more lenient when it comes to documentation, while MSME Registration may require more paperwork. Ensure that you have the necessary documents ready.
7. Long-term Considerations: Udyam Registration offers a lifetime validity, making it a good choice if you want a hassle-free, long-term solution.
8. Uniform Recognition: If you want uniform recognition and benefits across all states in India, Udyam Registration may be the preferred choice due to its pan-India validity.
Conclusion
In the dynamic business landscape of India, it is essential for entrepreneurs and business owners to stay informed about government initiatives that can benefit their enterprises. MSME Registration and Udyam Registration are two vital tools for businesses looking to avail of the advantages and recognition that come with being an MSME. Understanding the key differences between these two registration options is critical in making the right choice for your business.
While MSME Registration has been the traditional route for businesses to gain MSME status, Udyam Registration offers a more streamlined and inclusive process, with a stronger focus on online accessibility. The choice between the two registrations should be based on your business's specific needs, size, and growth plans. Regardless of which registration you choose, both are aimed at fostering the growth of small and medium-sized enterprises in India, and they play a vital role in driving economic development and innovation in the country.
In conclusion, MSME Registration and Udyam Registration are not just about obtaining a certificate; they are about accessing a plethora of benefits and recognition that can propel your business forward. Choose wisely, keeping your business goals and needs in mind, and leverage the support provided by the government to fuel your entrepreneurial journey in the diverse and vibrant Indian business landscape.
Learn more at: https://registrationmsme.com/
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How to use digital marketing channels and social media to promote your MSME in India
Social media and other digital marketing channels can be powerful tools for MSMEs in India to reach new customers, promote their products and services, and grow their businesses. However, with so many different platforms and strategies to choose from, it can be difficult to know where to start.
This article will provide you with a comprehensive overview of how to use social media and other digital marketing channels to promote your MSME in India. You will learn about the best social media platforms for MSMEs, how to use social media to generate leads and increase sales, and how to use digital marketing to reach new customers.
Best social media platforms for MSMEs in India
The best social media platforms for MSMEs in India will vary depending on your industry and target audience. However, some of the most popular social media platforms for MSMEs in India include:
Facebook: Facebook is the most popular social media platform in India, with over 300 million users. It is a great platform for businesses of all sizes to reach a large audience and promote their products and services.
Instagram: Instagram is a great platform for businesses that sell visual products, such as clothing, food, and home décor. It is also a good platform for businesses that want to build a strong brand identity and connect with their target audience on a more personal level.
Twitter: Twitter is a good platform for businesses that want to share news and updates about their products and services, and to engage with their target audience on current events and industry trends.
LinkedIn: LinkedIn is a good platform for businesses that want to connect with other businesses and professionals. It is also a good platform for businesses that want to share thought leadership content and promote their expertise.
Also Read: Overcoming financial hurdles: How MSMEs can access cheaper bank loans
Social media marketing tips for MSMEs in India
Once you have chosen the right social media platforms for your business, you need to develop a social media marketing strategy. Here are a few tips:
Create high-quality content: Your social media content should be informative, engaging, and visually appealing. Be sure to create a mix of different types of content, such as blog posts, articles, infographics, and videos.
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Also Read: Understanding MSME Samadhaan and Its Role in Delay Payment Resolution
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MSME Udyam Registration- Process, Benefits, Updation, Cancellation
The Indian Government is promoting micro, small, and medium enterprises. Setting up businesses, without facing legal hassles, becomes smooth under professional surveillance. Things have been simplified since the facility of filing online application has been introduced. Registering for an MSME becomes easier, simplified, and less time consuming. There are umpteen advantages that a business can enjoy after registering under MSME.
By following a simple procedure and completing all formalities, the business gets entitled to different benefits and upgrading at reduced rates & fees. For deeper insight, the write-up below for perusal will throw light on a lot of pivotal details related to MSME
Register a Micro, Small and Medium Enterprise
An individual willing to set up a micro, small or medium enterprise requires filing Udyam Registration online in the Udyam Registration portal, based on self-declaration. It doesn’t require uploading documents, papers, certificates or proof.
Soon after registration, an enterprise referred to as “Udyam” in the portal is assigned a permanent identity number i.e. Udyam Registration Number.
After the completion of the online registration procedure, the e-certificate called Udyam Registration Certificate will be issued by the authorities.
What is UDYOG Aadhaar?
Every business in the market, be it small scale or large scale, is allotted Udyog Aadhaar. It is an identity for a business active in the market and registered under MSME. The 12-digit identity number is issued to all small & medium scale enterprises and industries by the MSME Ministry. Every business is thus registered under the MSME category through the unique identification number.
Difference between Udyog Aadhaar, MSME & SSI
Previously, Udyog Aadhaar was identified by the name of MSME registration. Now onwards, the process of registration has been converted from MSME registration to Udyog Aadhaar registration.
· SSI vs. MSME
To a great extent, there’s nothing much that can be distinguished between SSI and MSME. Small scale industries (SSI) were initiated alongside MSME Development Act, 2006. The sole aim for the act is to develop the SSI sector.
Eligibility
Existing MSME Classification
· Sector Criteria Micro Small Medium
· Manufacturing Investment < Rs.25 lakh < Rs.5 crore < Rs.10 crore
· Services Investment < Rs.10 lakh < Rs.2 crore < Rs.5 crore
Revised MSME Classification
Criteria Micro Small Medium*
Investment & Annual Turnover < Rs.1 crore & < Rs.5 crore < Rs.10 crore & < Rs.50 crore < Rs.50 crore & < Rs.250 crore
Where to Apply:
Apply online without at paying fees at https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
BENEFITS OF UDYOG AADHAAR CERTIFICATE
· Receiving loan from bank(s) becomes simplified
· Shield against payments that are delayed
· Zero charges for UAN
· Simplified process to gain approval, license, and registration
· Less electricity bill privilege
· Discounted trademark registration (up to 50%)
· Facility to open current account
· Compensation on ISO certificate fees
· Easy acquisition for government MSME tenders
· Exclusion from direct tax laws (promotion subsidy under MSME)
· 1% bank OD subsidy
· Authorized by the Indian Government
Help to MSMEs to recover outstanding payments:
Government of India Ministry of Micro, Small & Medium Enterprises
· According to the Sec-8, Insolvency and Bankruptcy Code, 2016, active creditor of a company/firm can serve a demand notice in case of issues in the payment on the due date.
· Active creditors can choose/opt for corporate insolvency resolution under the provision of Section 9 of the IBC Code. It is applicable in cases of payments under INR 1 lakh.
Micro & Small Enterprises (MSEs) can visit the Samadhaan portal. It is the portal with the `Information Utility (IU)’ of National e-Governance Services Ltd. (NeSL).
https://samadhaan.msme.gov.in/MyMsme/MSEFC/MSEFC_Welcome.aspx
A link to MSEs for logging into NeSL-IU will be sent. It allows checking respective digital signatures attesting the info on the portal
I. The NeSL will upload the copy of unpaid invoices. With permission from MSEs, the information could then be shared to other lenders like Banks, NBFCs, rating agencies and other MSMEs concerning the defaulting buyers.
II. MSE can share the details of unpaid invoices on NeSL portal.
III. This will pressurize them for clearing outstanding payments.
GUIDELINES FOR FILING AADHAAR UDYOG FORM
1. Aadhaar Number: 12-digit Aadhaar number of the applicant is mandatory.
2. Name of the owner: Applicants are expected to fill the name stringently as stated in the Aadhaar Card issued by UIDAI.
E.g. If Anand Kumar Sahu has his name as Anand Sahu, the same name must be entered. If the name fails to match with the Aadhaar number, the applicant will not be able to fill the form.
Aadhaar Validation-
· Validate Aadhar- The option ‘Validate Aadhaar’ must be clicked for verification. Only after completing the procedure , the user can fill the form.
· Reset- By clicking the reset button, the fields like Name of the Owner and Aadhaar Number can be cleared.
· Applicant will receive the OTP on the mobile number registered with UIDAI
3. Social Category: Applicant’s caste: General/SC/ST/OBC is needed. Society sections, other than general, submitting the documents like caste certificate is mandatory, when demanded by the appropriate authority.
4. Gender- This section is to determine the gender of the entrepreneur/applicant.
5. Identification/Physically-Handicapped- If applicant is handicapped/specially-abled, he/she can select the section or ignore
6. Name of Enterprise- Applicants are expected to fill the name of the enterprises that will be legally known to the public. An applicant with multiple enterprises active in the market can be registered for separate Udyog Aadhaar with the same number for both enterprises. The combination of the same number can be integrated the second time and only additional details can be deleted/amended while editing.
7. Type of Organization- All applicants are allowed to choose the type of business/nature of business enlisted in list. Also, it is mandatory for the applicant to assure the legal authorization from legal entity i.e. enterprise being registered for Udyog Aadhaar, to fill the online form. Each enterprise shall be provided one Udyog Aadhaar number.
8. PAN Number – PAN number needs to be entered by the applicant if the business is co-operative, private limited, and limited liability partnership (LLP). Things will be optimal is the rest of the organization structure.
9. Location of Plant- Applicants are allowed to add multiple locations of the corporate site under registration by clicking the option Add Plant.
10. Official Address- Filling the complete postal address of the Enterprise including State, District, Pin code, Mobile No., and Email are mandatory details that must be filled by the applicant.
11. Date of Commencement- This section is also essential to be filled by the applicant. There must be sufficing record as when the business was commenced.
12. Previous Registration Details(if any)- In case the applicant’s enterprise already holds a valid EM-I/II for which Udyog Aadhaar is applied, by the GM (DIC) under MSME Declaration Act 2006 or SSI registration that prevailed prior, such details must be mentioned correctly.
13. Banking Details- It is essential for the applicant to provide his/her bank account number used for transactions for enterprises in the appropriate place. The applicant must share the IFS Code of the bank’s branch where his/her mentioned account exists. The IFS code is nowadays printed on the Cheque Books issued by the bank. Alternatively, if the Applicant knows the name of the Bank and the branch where his/her account is there, the IFSC code can be found from website of the respective Bank.
14. Key Activities- nature of business like “Manufacturing” or “Service” can be chosen by the enterprise for Udyog Aadhaar. In case the business is bi-nature i.e. engaged in manufacturing and service, it must be categorized under manufacturing. Enterprises, serving as manufacturers on a bigger note and offering service additionally must be categorized under manufacturing. Similarly, enterprises focusing on the service sector must include service category and do not include manufacturing in their details.
15. National Industry Classification Code (NIC Code)- The Applicant can choose two or more National Industrial Classification-2008 (NIC) Codes to encapsulate all their activities. It can be done by selecting multiple NIC code of Manufacturing and Service sector and clicking “Add More” button.
If you want to add Manufacturing then
· select “Manufacturing” radiobutton and
· keep on adding by clicking “Add More” button
If you want to choose the service option then
· select “Services” radiobutton
· keep on adding by clicking “Add More” button
Central Statistical Organization (CSO), under the ministry of statistics & program implementation (Govt. of India), is responsible for creating NIC codes.
NIC Code LIST: https://udyamregistration.gov.in/docs/NIC-code-for-MSME-classification-defination.pdf
The Applicant may use National Industrial Classification-2008 (NIC) Codes searching facility to avoid 3 steps selection process.
Example: The user requires filling the exact keywords (2 or more characters) in Search text box in Column No 11. Then all related NIC CODEs will be listed (including Nic 2 Digit, Nic 4 Digit & Nic 5 Digit) with code and description.
If User selects NIC 5 Digit code, then automatically all the related fields (like NIC 2 Digit, 4 Digit, 5 Digit & Enterprise Type) in column 11 will be automatically filled. In the same manner, If user selects NIC 4 digit, then related field of 2 digit NIC Code will filled, user still requires selecting NIC 5 digit from drop down(In this case 2 steps are required).
Nic Code not covered under MSME Retail & Wholesale trades included as MSMEs
16. Number of Employees- The applicant requires stating the workforce that is being paid by the enterprise. It is vital to assure the exact number of employees and wage earners.
17. lnvestment in Plant & Machinery / Equipment- While tallying the total investment , the original investment (buying cost of items) should be taken into consideration. However, it can exclude the resources spent for pollution control, research and development, industrial safety devices, and such other items as may be specified, by notification of RBI.
If an enterprise started with a set of plant and machinery purchased in 2008 worth Rs. 70.00 lakh has procured additional plant and machinery in the year 2013 worth Rs. 65.00 lakh, then the total investment in Plant & Machinery may be treated as Rs. 135.00 lakh.
18. DIC- Applicant requires filling in location of DIC based on the location of the Enterprise. This specific column will remain active and display option only when there are multiple DIC in the district. On the other hand, the system will automatically register you in the same DIC when there’s only one DIC in the region specified.
19. Submit- The OTP will be generated after the applicant submits all details. The OTP generated will be sent on the registered email address/mobile number.
20. The Applicant have to enter OTP received on mobile (linked with Aadhaar) second time.
21. Enter Captcha- Applicant must enter Captcha before clicking Final Submit button.
You can migrate to Udayam (Re-Register) here
UDYAM REGISTRATION FORM – For those already having registration as UAM
https://udyamregistration.gov.in/UdyamRegistrationExist.aspx
UDYAM REGISTRATION FORM – For those already having UAM registration under assisted filling
https://udyamregistration.gov.in/Udyam_AssistedMigration.aspx
Print Udayam Registration Certificate
https://udyamregistration.gov.in/PrintUdyamCertificate.aspx
Udayam Verify
https://udyamregistration.gov.in/Udyam_Verify.aspx
Forgot UAM-Udayam Registration No
https://udyamregistration.gov.in/UAM-convert-udyam-msme-free-registration.htm
Print Udyog Aadhaar Registration Certificate
https://udyamregistration.gov.in/UA/PrintAcknowledgement_Pub.aspx
Udyog Aadhaar Memorandum – Online Verification
https://udyamregistration.gov.in/UA/UA_VerifyUAM.aspx
Update/Cancel Udayam Registration:
https://udyamregistration.gov.in/Udyam_Login.aspx
Udyam Registration Form – For New Entrepreneurs (With Pan Yes)
https://udyamregistration.gov.in/docs/process_msme_regisration_new_pan_Yes.pdf
Udyam Registration Form – For New Entrepreneurs (With Pan NO)
https://udyamregistration.gov.in/docs/process_msme_regisration_new_No_pan.pdf
Vital Information You Must Know
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 INR one crore and turnover doesn’t surpass INR five crore
A small enterprise, where the investment in plant and machinery or equipment does not exceed INR ten crore and turnover remains below INR fifty crore; and
A medium enterprise, where the investment in plant and machinery or equipment do not surpass INR fifty crore and turnover stays below INR two hundred and fifty crore.
For the detailed legal framework for classification of MSMEs and Procedure for their Registration
https://udyamregistration.gov.in/docs/Udyam%20Registration%20Booklet.pdf
Information You Should Know
There’s a full-fledged system for facilitating the registration process organized by the Govt. of India:
· An enterprise, for the purpose of this process, will be identified as Udyam and its Registration Process will be known as ‘Udyam Registration’
· A permanent registration number will be allotted after registering successfully
· An online certificate will be issued for certifying the successful completion of registration
· This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed.
There’ll be no requirement for renewing the registration
All applicants will be assisted by single-window systems at the Champion Control Rooms at DICs.
Registration Process is free of cost. No applicant is required to pay any fees in any form to individuals demanding fees.
ADDITIONAL INFORMATION FOR REGISTRATION PROCESS
1. The form for registration will be as provided in the Udyam Registration portal.
2. No fee is applicable for Udyam Registration.
3. Aadhaar number is mandatory for Udyam Registration
4. The Aadhaar number must be of the proprietor, in the case of a proprietorship firm, of the managing partner in the case of a partnership firm and of a karta in the case of a Hindu Undivided Family (HUF).
5. In case of a Company or a Limited (Pvt. Ltd.), Liability Partnership (LLP) or a Cooperative Society or a Society or a Trust, the organization or its authorized signatory shall be responsible for providing details like GSTIN and PAN along with its Aadhaar number.
6. In case an enterprise is duly registered as an Udyam with PAN, lack of information for previous years, when the PAN details were unavailable shall be filled on self-declaration basis.
7. No enterprise shall file more than one Udyam Registration: Provided that any number of activities including manufacturing or service or both may be specified or added in one Udyam Registration.
8. Intentional misinterpretation or suppression of self-declared facts & figures, appearing in Udyam Registration or update process, shall be penalized as per the Section 27 of the Act.
FOR EXISTING ENTERPRISES
1. Enterprises currently active and registered under EM-II or UAM require re-registering on Udyam Portal w.e.f 1st July 2020.
2. Reclassification for all enterprises, registered till 30th June, 2020, shall be done based on the notification
3. The existing enterprises registered prior to 30th June 2020, shall hold validity up to the 31st day of December, 2021.
4. Enterprises registered with other organization(s), under the Ministry of MSME, requires registering itself under Udyam Registration soon after getting notified.
PSB Loans in 59 Minutes:
Loans up to Rs.1 Crore for MSMEs within 59 minutes through dedicated Online Portal:
www.psbloansin59minutes.com for GST registered users.
· Name
· Email Id
· Mobile No
· GST No (API Access should be initiated)
· 3 years ITR Copy
· 6 months Bank Statement
· Net worth
· Personal details (Address, contact no.)
Company Bio
PKP Consult is a leading name in the chartered accountancy sector of India. Based in New Delhi, the firm is agile in offering services related to MSME registration. Everything related to MSME registration in Delhi is performed by professionals associated with the firm.
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This is a test
This is a test.
The Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. It contributes significantly to the economic and social development of the country by fostering entrepreneurship and generating largest employment opportunities at comparatively lower capital cost, next only to agriculture. India is expected to emerge as one of the leading economies in the world over the next decade, and the Micro, Small & Medium Enterprises (MSME) segment is expected to play a significant role in the emergence of the Indian economy. MSMEs are complementary to large industries as ancillary units and this sector contributes significantly in the inclusive industrial development of the country. The MSMEs are widening their domain across sectors of the economy, producing diverse range of products and services to meet demands of domestic as well as global markets. There are more than 51 million units in the country contributing around 37% of the manufacturing output. The sector, which has maintained more than 10% growth rate over the years, is responsible for 46% of the overall exports from India. It provides employment to 12 crore people while sourcing workforce from rural areas. They also have had a significant impact on innovation. In India, 17% of MSMEs have introduced ‘new to the world’ innovations during the course of their business.
Let us take a look at some of the key importance of this sector in the development of India both in terms of economic and social development:
1. Creates large scale employment:
Since the enterprises falling in this sector require low capital to start the business, it creates huge employment opportunities for many unemployed youth. India produces about 1.2 million graduates per year, of the total number about 0.8 million are engineers. And, there is no economy in the world that can provide jobs to so many fresh graduates in one year. MSME is the boon for many of this fresh manpower.
2. Economic stability in terms of Growth and leverage Exports:
MSME is a significant growth driver in India, with it contributing to the tune of 8% to GDP. As mentioned before, Exports sector in India constitutes about 46% of contribution from MSME alone. Looking at the kind of contribution of MSME to manufacturing, exports and employment, other sectors are also benefitting from MSME. MNCs today are buying semi-finished, and auxiliary products from small enterprises, for example, buying of clutches, and brakes by automobile companies. It helps create a linkage between MSME and big companies. Even after the implementation of the GST 40% msme sector also applied GST Registration which increases the government revenue by 11%.
3. Encourages Inclusive Growth:
About 50% of wealth in India in owned by just 100 people which is due to unequal distribution of wealth. Inclusive growth is on top of the agenda of Ministry for Medium, and Small, and Medium sized enterprises for several years. While poverty and deprivation are a deterrent to the development of India, including marginalized sections of society is a key challenge lying before the Ministry of MSME.
4. Cheap Labor and minimum overhead:
In large scale organizations, one of the key challenges is to retain the human resource through an effective human resource management professional manager. But in case of an MSME, the requirement of labor is less, and it does not need a highly skilled laborer. Hence, the indirect expenses incurred by the owner are also low.
5. Simple Management Structure for Enterprises:
MSMEs do not require a huge capital to start. With limited resources available within the control of the owner, decision-making becomes easy and efficient. As in case of a large corporation wherein a specialist is required for every departmental functioning because of complex organizational structure, a small enterprise does not need to hire an external specialist for its management. The owner himself/herself can manage it. Therefore, it can be run single-handedly.
6. Plays an important role in making “Make in India” possible:
Post the inception of ‘Make in India’, a signature initiative by the prime minister of India, the process of incorporating a new business has been made easy. Since the MSME is the backbone in making this dream a possibility, the government has directed the financial institution to lend more credit to enterprises in MSME sector.
Final Conclusion on MSME Sector:
Micro, Small and Medium-sized Enterprises (MSME) are one among the most important sectors, forming the backbone of the Indian economy. This sector has been instrumental in the growth of the nation, leveraging exports, creating huge employment opportunities for the unskilled, fresh graduates, and the underemployed, also extending the opportunities to banks for giving more credit to enterprises in this sector. With India being a predominantly small business driven economy, the strength of this industry has been acknowledged by the government of India, with various schemes such as MSME Sambandh, MSME Samadhaan, SFURTI and many more being introduced to not only encourage this sector but also to empower it to compete on a global platform.
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Micro & Small Enterprises Facilitation Councils (MSEFC)/ MSME SAMADHAAN Scheme
>To facilitate settlement of delayed payments to Micro and Small enterprises for the goods/services supplied by them.
1) Every reference made to MSEFC shall be decided within ninety days from the date of filing the complaint.
2) MSEFC, after examining the case, will issue directions to the buyer unit for payment of the due amount along with interest as per the Act.
3) The buyer is liable to pay compound interest three times of the bank rate if he fails to make payment within 45 days of the acceptance of the goods/service.
4) Appeal by Buyer before any court is admissible subject to depositing 75% of the award amount with the Council.
To Know More Visit :
https://tnmtipb.in/scheme
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MSME Sector Expectations from Upcoming Budget
MSMEs continue to face several headwinds such as low consumption expenditure, high commodity prices, elevated freight costs and supply chain disruptions, in addition to the operational disruptions caused by new variants of the virus. Given this difficult operating environment and market condition, we expect government to provide considerable relief in the MSME Budget, specifically:
Address the issue of delayed payments: Since the launch of MSME Samadhaan in Oct 2017, only 22% of the applications have been either disposed or mutually settled. While 21% of the applications have been rejected, a whopping 57% of the applications are either currently under consideration or yet to be viewed by the council. It could be several months, if not years, before these applications are resolved. Measures to expedite this process is expected. To reduce delays in the future, the government should help MSMEs adopt a standard form of commercial contracts and look for ways to automate all the process from application filling to disposal. A unified trade payment database, on patterns of credit bureau could be envisaged.
Connect with us for a detailed MSME Budget analysis.
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Sundaram Finance to create awareness on govt schemes like MSME Samadhaan
Sundaram Finance to create awareness on govt schemes like MSME Samadhaan
Sundaram Finance, a leading NBFC in the country, and MSME Development Institute in Chennai have joined hands to create awareness on government schemes such as MSME Samadhaan and Credit Linked Capital Subsidy Scheme(CLCSS).
The schemes were launched to resolve the delayed-payment challenge for micro and small industries and for their technology upgradation. Under MSME Samadhaan, a portal for…
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Empowering MSMEs: A Dive into the MSME Samadhaan Portal
In response to these challenges, the government launched the MSME Samadhaan portal in October 2017. This dedicated Delayed Payment Monitoring Portal empowers MSMEs to file online complaints against delayed payments swiftly.
Visit here:-
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#msme registration#udyam registration#online business#small business#msme#msme full form#msme certificate#msme loan#msme certificate download#msme registration online#what is msme#msme definition#msme samadhaan
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Are you registered MSE entity and worried for your delayed payments. Then you must be unaware of MSME Samadhaan. An online portal to redress payment grievances. But how does it work?
Have a look at this article to clear your doubts.
#msmesamadhaan #mse #msme #MSMEbills #MSEFCS #MSMEPoratal #delayedpayments #legaldelight
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Understand MSME SAMADHAAN – Delayed Payment Monitoring System 2021
Understand MSME SAMADHAAN – Delayed Payment Monitoring System 2021
Delayed Payments to Micro and Small Enterprises under Micro, Small and Medium Enterprise Development (MSMED) Act, 2006
The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 contains provisions of Delayed Payment to Micro and Small Enterprise (MSEs). State Governments to establish Micro and Small Enterprise Facilitation Council (MSEFC) for settlement of disputes on getting…
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learn about samadhaan portal for payment recovery from your buyers with compound interest .. How you can file case using internet and not going to any court ...View complete tutorial in Hindi https://youtu.be/_mNJmK1xOPULink to reach the portal https://bit.ly/2WN1MZ4Learn to register on Udyam https://youtu.be/yaB1y4NyM0E
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The 2019-20 Budget had proposed a new payment platform for India’s micro, small and medium enterprises (MSMEs) — defined as enterprises whose investments are under Rs 10 crore in the cases of manufacturing units and under Rs 5 crore in the case of service units — to enable filing of bills and online tracking of payments from government agencies, a major source of their cash flow. But to make the new platform effective, some problems with the existing online systems must be addressed.
In 2015-16, India had 63.4 million MSMEs employing 111 million persons, according to National Sample Survey data cited in the MSME Annual Report 2018-19. MSMEs constitute 45 per cent of India’s manufacturing output and 49 per cent of its exports, while employing 30 per cent of its workforce. Delayed payments often push them into a debt trap, sickness and failure, shows our analysis of National Sample Survey data.
Pending payments in MSMEs rose from 8.61 per cent in 2010-11 to 9.5 per cent in 2015-16, according to our analysis of the data used in the 67th and 73rd rounds of the National Sample Survey of “unincorporated non-agricultural enterprises”. It is the second-most severe problem faced by MSMEs, the first being a fall in demand.
However, the existing platforms (MSME Samadhaan and Trade Receivables Discounting System (TReDS)) for MSEs (micro and small enterprises) are riddled with problems that result in delayed payments.
Government payments to suppliers and contractors being a major source of cash flow for MSMEs, removing payment delays would enable MSMEs to make appropriate investment decisions, while improving their access to finance and marketing.
Attempts to streamline payments
All the 36 states/Union Territories in India have constituted Micro and Small Enterprise Facilitation Council (MSEFC) for the settlement of disputes on getting references/filling on delayed payments, as mandated under the the MSMEs Development Act 2006. The buyer is liable to pay a monthly compound interest to the supplier at three times the bank rate notified by the Reserve Bank of India (RBI) if the payment is not made within 45 days of the day of acceptance of the goods/service or the deemed day of acceptance.
All specified companies that delay payments are required to file a half-yearly return to the Ministry of Corporate Affairs (MCA) stating the details of the dues and giving reasons for the delay, as per an MSME ministry notification issued in November 2018. In January 2019, the MCA also directed all specified companies to file a form, MSME-I, containing the details of all micro or small enterprise suppliers.
But, as per the notification, these regulatory provisions do not apply to medium enterprises which constitute 0.01 per cent of the MSME category.
Small relief
To empower micro and small enterprises to directly register cases relating to delayed payments by government bodies, the MSME ministry launched a delayed payment portal, MSME Samadhaan, October 30, 2017.
So far, 27,693 applications involving dues worth Rs 7,212.23 crore have been filed by micro and small enterprises (MSEs), according MSME Samadhaan portal. However, of these, only 1,532 applications have been disposed of by micro and small enterprises facilitation council (MSEFC) while 4,474 applications were rejected. Further, 2,241 cases were mutually settled with buyers while 7,447 cases are currently under consideration by MSEFC.
As we mentioned earlier, medium enterprises are not eligible to submit applications at Samadhaan. And only MSEs having Udyog Aadhaar Number (UAN), a unique identity number obtained after registration for Udyog Aadhaar Memorandum (UAM), are eligible to apply at the portal.
MSMEs’ registration for UAM started in September 2015. But only around 7.7 million MSEs have registered so far. Given that there are 63.3 million MSMEs, this indicates that only around 12 per cent MSMEs are eligible to apply to Samadhaan.
The RBI also introduced an online platform, TReDS, in March 2014 to facilitate discounting of bills and invoices of MSME suppliers. This is a financial arrangement wherein a seller recovers an amount of the sales bill from a financial intermediary, after paying a discount/fee, before it is due.
Receivables Exchange of India Ltd (RXIL), the first TReDS platform, was incorporated on February 26, 2016. The ‘Strategy for New India @75’, prepared by NITI Aayog, clearly states that the Department of Public Enterprises should ensure the registration of all public sector units on TReDS portal.
This system involves three parties—MSME suppliers, corporate buyers and financiers. The financier discounts the invoice after the corporate buyer accepts the invoice and bills uploaded by the MSME supplier.
However, this is a somewhat lengthy process because it involves many stages and interactions between the three parties. Further, the discounting and financing charges are borne by the MSME suppliers, reducing their earnings. This discourages many MSMEs from using the TReDS portal and forces them to approach informal financers for invoice discounting that allows immediate payment.
Further, as per the November 2, 2018, notification by the MSMEs ministry, only companies registered under the Companies Act 2013 and reporting a turnover of over Rs 500 crore (and all Central Public Sector Enterprises), can board the TReDS platform. This ends up excluding many MSMEs.
chartWay ahead
Both central and state governments have announced well-publicised schemes to promote the growth of MSMEs — for example, PMEGP which provides government subsidy for meeting the project cost partially, MUDRA Yojana which aims to develop micro enterprises by providing various kinds of support including refinance and MSME59, an initiative for processing loan applications of MSMEs and sanctioning them in under 59 minutes, MSME Samadhaan which aims to address the issue of delayed payment from government agencies, TReDS portals which provide factoring services in case of delayed payment, etc.
However, these schemes have overlapping objectives— to address MSMEs’ financial problems — and this leads to confusion among beneficiaries as well as implementing agencies. This also increases administrative costs as each scheme requires its own staff and setup to deal with beneficiaries. Therefore, there is a need to simplify these schemes and policies.
Research at the Institute for Studies in Industrial Development suggests a single-window solution would address the problem of delayed payments from both government and market players by encompassing online payment, invoice discounting and delayed payment redressal (Figure 1).
Both buyer and seller could register at the online payment platform. After a business transaction and uploading of invoices by the seller, MSMEs may opt for invoice discounting if payment from the buyer cannot be realised immediately or within the agreed time period.
Further, if there is any delay in payment as per statutory guidelines, the issue should automatically move to Samadhaan for redressal with an alert to both the buyer and the supplier. Many entrepreneurs remain unaware of the MSME online platforms, so there is also a need for awareness campaigns.
This system would work best if all MSMEs are eligible for registration and its process is speedy and simple.
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