Understanding about MSME Registration & its Benefits


Do you run a small business? Have you already applied for Udyog Aadhar? Learn more about MSME registration process in India.

Micro, Small and Medium Enterprises (MSME) plays a significant role in our economy, it generates GDP and employment in our country. Indian government launched many schemes to support MSME businesses. Any MSME business can take benefits from government schemes.

MSME registration is an important registration because without MSME registration you are not eligible to get benefits under government schemes. Now the MSME registration can be done through Udyog Aadhar Registration. Previously the process of MSME registration was difficult but now the process of Udyog Aadhar registration is very simple and it can be done through online mode. This article talks about the MSME registration and its benefits so after reading it, you will get an idea about the MSME and its benefits.

What is MSME registration?


Micro, Small and Medium Enterprises (MSME) registration is a government registration which is regulated by the Ministry of Micro, Small and Medium Enterprises and the ministry introduced many schemes for the improvement of MSME business sector. Any small and medium businessman can register their business under MSME for obtaining benefits from the government schemes. The Ministry has classified the sector of MSME which is mention here:

Classification of MSME


Enterprises(Investment in plant & machinery)Service Sector
(Investment in equipment's)
MicroDoes not exceed twenty five lakh rupeesDoes not exceed ten lakh rupees:
SmallMore than twenty five lakh rupees but does not exceed five crore rupeesMore than ten lakh rupees but does not exceed two crore rupees
MediumMore than five crore rupees but does not exceed ten crore rupeesMore than two crore rupees but does not exceed five crore rupees


As you can see that the government has classified the MSME according to their turnover and there are two different sectors that are manufacturing and Service sector under which a business can be registered.
Now the process of MSME registration has been changed, now you can register your business under MSME through Udyog Aadhar.

After registration under Udyog Aadhar, you will get a 12 digit unique number which is allotted by the Ministry of Micro, Small and Medium Enterprises. The process of registration is simple, it can be done online for which you have to visit the official website of Udyog Aadhar and then you have to fill "Udyog Aadhar Memorandum (Application form)" for Udyog Aadhar registration.

After filling the memorandum, you have to attach the required documents like Identity Proof, business proof, address proof, Mobile number, Email Id, Bank Details, Etc. Bank Account detail is required for registration because after registration all monetary benefits will be given directly in bank account.

Benefits of MSME registration


After MSME registration, you can avail following benefits-
  • After obtaining Udyog Aadhar, you can apply for a loan under various government schemes. You can take benefit from MUDRA scheme. MUDRA scheme is launched by the government which provides loan on low interest to the small and Medium Enterprises.
  • After Obtaining Udyog Aadhar, you can participate in the foreign expo and you will get a subsidy from the government for it. The government also launched a scheme under a person can advertise their products in foreign at a subsidized price.
  • After MSME registration, your manufacturing cost will be decreased because there are various schemes which provide subsidy to the manufacturer. GST may be exempted or less GST will be charged by the government. After obtaining Udyog Aadhar you will get benefits under GST, for availing GST benefits first you have to do your GST registration and GST registration online can be done. Your business will also get benefits under direct tax laws so you should register your business under MSME through Udyog Aadhar.
  • Your business will get concession in electricity bills which decrease your cost of manufacturing and there are other government schemes which give you many benefits like subsidized rate on electricity and water supply.
  • Your business will get benefits under trademark and patent laws, you will get subsidy for patent and trademark registration.
  • There are other various schemes which supports entrepreneur and women and there are various educational schemes under which expert will teach you many things related to your business.

  • Conclusion


    As you can see in the above given article that MSME registration is very important as it will give you many benefits. MSME registration can be done through online mode for which you can visit the official website of Udyog Aadhar. As you can see that there are so many benefits of MSME registration like a loan on low-interest rates, subsidy under various government schemes, electricity on subsided price, etc.

    If you are running a small or medium enterprise then you should register your business under Udyog Aadhar so your business will get benefits under various government schemes.


    Article by Tony John
    Tony John is a professional blogger from India, who started his first Weblog in 1998 at Tripod.com. Tony switched to blogging as a passion blended business in the year 2000 and currently operates several popular web properties including IndiaStudyChannel.com, Techulator.com, dotnetspider.com and many more.

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    Comments

    Author: Umesh14 Jun 2019 Member Level: Diamond   Points : 7

    An excellent sketch of getting Udyog Aadhar registration of micro, small and medium businesses to get the various benefits.

    There was a time when the students only knew that they have to apply for a job in Govt after they complete their education. They even did not know that private organisation and business houses are also there where they can seek employment. No one wanted to do that seeing the lucrative Govt jobs having a facility of lifetime pension also.

    Due to Govt policies of liberalization and globalization that phase changed and Govt jobs came dwindling down shutting the prospect there for the qualified people. This brought a paradigm shift in the job market and even the qualified people started to think to start or a join a group of entrepreneurs engaged in MSME businesses.

    In this scenario the scheme launched by Govt for Udyog registration of these small businesses is very lucrative as it provides so many facilities, subsidies and opportunities for networking with other businesses in a global platform. Tax benefits are other added advantage. The MSME must avail these benefits by registering their business in this scheme.



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