{"id":5244,"date":"2019-06-28T15:27:14","date_gmt":"2019-06-28T09:57:14","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=5244"},"modified":"2019-07-01T11:45:57","modified_gmt":"2019-07-01T06:15:57","slug":"how-to-do-msme-registration-under-udyog-aadhaar","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/how-to-do-msme-registration-under-udyog-aadhaar\/","title":{"rendered":"How to do MSME Registration Under Udyog Aadhaar?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">We all know that India is transforming very rapidly as youth is moving towards startup. As a result, government is introducing beneficial schemes for MSMEs (Micro, Small &amp; Medium Enterprises) to encourage them for their growth and long term survival. Earlier, Startups were very costly and anyone could rarely think of that but now, The Ministry of MSMEs has been aided the Start-ups in all possible ways for the growth of Indian Economy and makes the <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/swaritadvisors.com\/msme-registration\" target=\"_blank\">MSME Registratio<\/a><a href=\"https:\/\/swaritadvisors.com\/msme-registration\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"n process (opens in a new tab)\">n process<\/a> easier. The government of India has enacted Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006 to promote, develop and enhance the competitiveness of micro, small and medium enterprises in the country. Before we proceed further towards MSMEs registration process, we must know what are MSMEs?<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a8b8c08a69\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a8b8c08a69\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/how-to-do-msme-registration-under-udyog-aadhaar\/#What_are_MSMEs\" title=\"What are MSMEs?\">What are MSMEs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/how-to-do-msme-registration-under-udyog-aadhaar\/#What_are_the_documents_required_for_MSMEs_Registration\" title=\"What are the documents required for MSMEs Registration?\">What are the documents required for MSMEs Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/how-to-do-msme-registration-under-udyog-aadhaar\/#How_to_register_MSME_under_Udyog_Aadhaar\" title=\"How to register MSME under Udyog Aadhaar?\">How to register MSME under Udyog Aadhaar?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/how-to-do-msme-registration-under-udyog-aadhaar\/#What_are_the_benefits_of_MSME_registration\" title=\"What are the benefits of MSME registration?\">What are the benefits of MSME registration?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/how-to-do-msme-registration-under-udyog-aadhaar\/#Easy_financial_aid_from_banks\" title=\"Easy financial aid from banks\">Easy financial aid from banks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/how-to-do-msme-registration-under-udyog-aadhaar\/#Preference_in_government_tenders\" title=\"Preference in government tenders\">Preference in government tenders<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/learning\/how-to-do-msme-registration-under-udyog-aadhaar\/#Tax_benefits\" title=\"Tax benefits\">Tax benefits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/learning\/how-to-do-msme-registration-under-udyog-aadhaar\/#Concession_in_electricity_bill\" title=\"Concession in electricity bill\">Concession in electricity bill<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/learning\/how-to-do-msme-registration-under-udyog-aadhaar\/#Excise_Exemption_Scheme\" title=\"Excise Exemption Scheme\">Excise Exemption Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/learning\/how-to-do-msme-registration-under-udyog-aadhaar\/#Protection_against_delayed_payments\" title=\"Protection against delayed payments\">Protection against delayed payments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/learning\/how-to-do-msme-registration-under-udyog-aadhaar\/#Subsidy_on_Patents_registration\" title=\"Subsidy on Patents registration\">Subsidy on Patents registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/learning\/how-to-do-msme-registration-under-udyog-aadhaar\/#Opportunities_for_growth\" title=\"Opportunities for growth\">Opportunities for growth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/learning\/how-to-do-msme-registration-under-udyog-aadhaar\/#Exemption_on_the_interest_rate_on_overdraft\" title=\"Exemption on the interest rate on overdraft \">Exemption on the interest rate on overdraft <\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/swaritadvisors.com\/learning\/how-to-do-msme-registration-under-udyog-aadhaar\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_MSMEs\"><\/span>What are MSMEs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to the provision of MSMED Act, 2006,\nMSMEs are categorised according to their investments in manufacturing and\nservice sectors respectively.<\/p>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td>\n  <strong>Enterprise<\/strong>\n  <\/td><td>\n  <strong>Investment in Manufacturing Sector <\/strong>\n  <\/td><td>\n  <strong>Investment in Service Sector<\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>Micro<\/strong>\n  <\/td><td>\n  Less than Rs25 Lakh\n  <\/td><td>\n  Less than Rs10 Lakh\n  <\/td><\/tr><tr><td>\n  <strong>Small<\/strong>\n  <\/td><td>\n  More than Rs25 Lakh but\n  less than Rs5 crore\n  <\/td><td>\n  More than Rs10 Lakh but\n  less than Rs2 crore\n  <\/td><\/tr><tr><td>\n  <strong>Medium<\/strong>\n  <\/td><td>\n  More than Rs5 crore but\n  less than Rs10 crore\n  <\/td><td>\n  More than Rs2 crore but\n  less than Rs5 crore.\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_documents_required_for_MSMEs_Registration\"><\/span>What are the documents required for MSMEs Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Business Address proof- Allotment letter of the land in case of self-owned Land\/ Receipts of Property Tax\/Municipal license issued by government\/ (Rent agreement and NOC by landlord in case of Rented land).<\/li><li>Copies of Purchase &amp; Sales Bill- Copy of the sale bill of end product sold to customers and copy of the purchase bill of raw materials.<\/li><li>Partnership Deed\/ Memorandum of Association (MOA)\/ Article of Association (AOA).<\/li><li>Bill of all machines and equipments purchased for business operations.<\/li><li>Copy of Industrial License.<\/li><li>Identity and Address proof of Directors ( Aadhaar card, PAN card, Driving License)<\/li><li>Contact information of Directors.<\/li><li>National Industrial Classification code.<\/li><li>Cancelled cheque of current account.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_register_MSME_under_Udyog_Aadhaar\"><\/span>How to register MSME under Udyog Aadhaar?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>MSME registration is compulsory for all those entrepreneurs who want to enjoy all the beneficial schemes of MSMEs. Companies who are incorporated as Private Limited, LLP, or proprietorship can also register themselves as <a href=\"https:\/\/msme.gov.in\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"MSME (opens in a new tab)\">MSME<\/a>. Earlier MSMEs were registered under MSME- Enterprise Registration and Entrepreneur memorandum but now, MSME registration can be done under Udyog Aadhaar. According to the data of udyogaadhaar.gov.in, <strong>69, 97,664 companies <\/strong>were registered under Udyog Aadhaar. However, The MSME registration process under Udyog Aadhaar is quite simple as follows:<\/p>\n\n\n\n<ul><li>Firstly, the entrepreneur should fill their 12 digits Aadhaar number.<\/li><li>Secondly, the name of the entrepreneur and then he\/she must validate the Aadhaar by clicking on \u201cValidate &amp; Generate OTP\u201d. The OTP will be send to the Aadhaar linked mobile number.<\/li><li>After that, the entrepreneur may choose the social category whether they belong to General, SC or ST category.<\/li><li>Then, entrepreneur may select his\/her gender.<\/li><li>After the gender selection, entrepreneur may choose the status of physically handicapped.<\/li><li>Then, the entrepreneurs must enter the name of the organization by which their organization is known by customers or public. An applicant can have more than one enterprise but they need to register for different Udyog Aadhaar for each enterprise.<\/li><li>Entrepreneurs must select the type of organization from the given list of appropriate type of organization of their organization.<\/li><li>Then, the entrepreneurs may submit their PAN card details in case of Private Limited, Limited Liability Partnership or Cooperative. This is optional in case of other organizations.<\/li><li>After that, entrepreneurs can add their plant locations. They can add more if in case they have more than 1 plant location.<\/li><li>The applicants must fill the appropriate address of their organization including the district, state and pin code of the area.<\/li><li>The entrepreneurs should enter the date on which they commenced the operations of the organization.<\/li><li>Entrepreneurs must enter the details of previously applied Udyog Aadhaar for their organization, if any.<\/li><li>An Entrepreneur should enter the bank details of the organization.<\/li><li>Then, the entrepreneurs must select the major category of their organization, either manufacturing or service sector.<\/li><li>Then the entrepreneurs must choose their multiple NIC code for their organization. The NIC code is prepared by Central statistical organization under Ministry of Statistics and Programmed Implementation, Government of India.<\/li><li>After that, the entrepreneur must select the number of employees working in the organization.<\/li><li>The applicant should enter the total worth of the plant and machineries they are using for their business.<\/li><li>The entrepreneurs then based on the location of enterprise must fill in location of DIC (District Industries Center).<\/li><li>After filling up all the details the applicant then submit his application online<\/li><li>And at last, he\/she can enter the OTP received 2<sup>nd<\/sup> time on mobile and Re-Captcha, and enter final submission of the application.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_benefits_of_MSME_registration\"><\/span>What are the benefits of MSME registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Easy_financial_aid_from_banks\"><\/span>Easy financial aid from banks<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Companies registered under MSME can easily take loans from banks. They\ncan take collateral free loans from banks without pledging any property with banks.\nThe Government of India launched Credit Guarantee Fund Scheme under Credit\nGuarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide\nCollateral free Loans to micro and small enterprises.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Preference_in_government_tenders\"><\/span>Preference in government tenders<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Companies registered under MSME can get the\npreference in procuring government tenders as they have innovative techniques\nwhich make the processes effective as well as efficient.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax_benefits\"><\/span>Tax benefits<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Companies can enjoy initial year tax benefits\ndepending on the nature of business as prescribed under Government Schemes\nafter registering themselves under MSME, and they can also get benefits on\nstamp duty and Octroi refunds.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concession_in_electricity_bill\"><\/span>Concession in electricity bill<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>MSME registered companies can also get\nconcession on electricity bill of their company\u2019s land by making an application\nto electricity department with their MSME certificate.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Excise_Exemption_Scheme\"><\/span>Excise Exemption Scheme<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>MSME registered companies can take an\nadvantage on Excise exemption in their initial year depending on the nature of\ntheir business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Protection_against_delayed_payments\"><\/span>Protection against delayed payments<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The ministry of MSME has given protection to\nall MSME registered companies against delayed payments from their buyers and\nright to charge an interest from them in case of delayed payment. In case,\nthere is no payment date on the agreement then the buyer would have to make the\npayment within 15 days or the day of acceptance of good but the payment due\ncannot exceed 45 days in case otherwise, they can resolve issue with\nArbitration or Conciliation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Subsidy_on_Patents_registration\"><\/span>Subsidy on Patents registration<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Companies who have MSME certificate can enjoy\n50% subsidy on their Patents registration by making an application to the\nconcerned department.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Opportunities_for_growth\"><\/span>Opportunities for growth<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>MSME registered companies can expand their\nbusiness on national and international level as government is supporting them\nin all way. In addition, they are also eligible for Industrial Promotion\nsubsidy as per government schemes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Exemption_on_the_interest_rate_on_overdraft\"><\/span>Exemption on the interest rate on overdraft <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Companies who are MSME registered can take an\nadvantage of 1% interest rate exemption on their bank overdrafts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the record of msme.gov.in, Micro, Small and Medium Enterprises contribute 45% of country\u2019s total industrial employment, 50% to India\u2019s exports and 95% to India\u2019s all industrial units. An entity should register them as MSME under Udyog Aadhaar if they want to enjoy all benefits of MSMEs. This scheme is a life savior to those startups who have latest innovative techniques but lack of funds for its implementation. . The Ministry of MSME is aiding all the MSMEs in all possible ways to encourage the growth of the economy. The MSME registration process is also very simple and one can obtain their MSME certificate in 2-3 days after filling up their form and submitting all the documents. Even then, you are not able to register your entity as MSME under Udyog Aadhar then <a rel=\"noreferrer noopener\" aria-label=\"contact  (opens in a new tab)\" href=\"https:\/\/swaritadvisors.com\/contact-us\" target=\"_blank\">contact <\/a> for your assistance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We all know that India is transforming very rapidly as youth is moving towards startup. As a result, government is introducing beneficial schemes for MSMEs (Micro, Small &amp; Medium Enterprises) to encourage them for their growth and long term survival. Earlier, Startups were very costly and anyone could rarely think of that but now, The [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":5258,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[141],"tags":[190,142],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/5244"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=5244"}],"version-history":[{"count":10,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/5244\/revisions"}],"predecessor-version":[{"id":5286,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/5244\/revisions\/5286"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/5258"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=5244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=5244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=5244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}