What is

MSME ?

MSME stands for Micro Small and Medium Enterprises. The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 to support small businesses and promote growth in the manufacturing and service sectors.

Different types of

MSME?

The act divided the MSMEs into two categories:

Enterprises engaged in manufacture or production or processing

Enterprises engaged in providing or rendering services

These enterprises are further sub-divided into Micro, Small and Medium enterprises based on their investment in plant and machinery and Turnover.

Classification of

MSME

ClassificationTurnoverInvestment In Plant & Machinery
Micro EnterpriseUpto Rs. 5 CroresLess than Rs.1 Crore
Small EnterpriseUpto Rs.50 CroreLess than Rs.10 Crore
Medium EnterpriseUpto Rs. 250 CroresLess than Rs.50 Crore

List of Documents Required for

MSME Registration

Below are the documents required for the process of MSME Registration:

  • PAN Card
  • Incorporation Certificate for Companies/LLP
  • MOA and AOA for Companies
  • Partnership/LLP Deed
  • Aadhar Card
  • Complete Postal Address with District and PIN
  • Bank Account Details/Cancelled Cheque
  • GST RC
  • Details of Major Business Activities

Important Points to consider for

MSME Registration

Below are the documents required for the process of MSME Registration:

  • There is no Government Fee for MSME registration.
  • Complianto is NOT an agency/representative/franchise of Ministry of MSME. We are a private organisation and our services and charges are private and consulting in nature.
  • A permanent registration number also known as Udyam Registration Number will be given after registration.
  • There will be no need for renewal of Registration.
  • PAN & GST linked details on investment and turnover of enterprises will be taken automatically from Government data bases.
  • No enterprise shall file more than one Udyam Registration. However, any number of activities including manufacturing or service or both may be specified or added in one Registration.
  • The Aadhaar number shall 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).
  • In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organisation or its authorised signatory shall provide its GSTIN and PAN along with its Aadhaar number.

WHY COMPLIANTO

ACCESSIBILITY

We provide convenient communication channels for clients to reach out and get support when needed.

Transparent Pricing

We offer transparent and affordable pricing, without any hidden fees or charges, making it easier for clients to budget and plan.

Confidentiality

Our services will be executed through confidentiality agreements . Your company’s information and trademarks will be kept secret with us

Expertise

We have a team of qualified and experienced professionals who can provide high-quality financial and business advisory services to clients.

Personalized Services

Our Service solutions can be tailored to the unique needs of each client, rather than a one-size-fits-all approach.

Prompt Response

We provide regular updates and proactive communication to clients, keeping them informed and involved in the decision-making process.

OUR PLANS FOR

UDYAM MSME REGISTRATION

  • Basic
  • ₹ 699
    per (Including Government Fee)

Have A Question?

FREQUENTLY ASKED QUESTIONS (FAQs)

There are various schemes run by central and state governments for MSMEs and few of them are highlighted below:

  1. Prime Minister Employment Generation Programme (PMEGP)

  • Objective: The scheme aims at providing financial assistance to self-employment ventures, in order to generate employment opportunities for unemployed youth and traditional artisans.
  • Key benefits :
  1. Bank-financed subsidy scheme for setting up microenterprises in the non-farm sector.
  2. Margin money subsidy on bank loans of 15% to 35% for manufacturing projects of up to INR 25 lakhs, and INR 10 lakhs for service projects.
  3. For special category beneficiaries such as SC/ST/Ex-Servicemen/NER/Women/PH/Minorities, the money subsidy margin is 25% in urban areas and 35% in rural areas. The limit for the maximum project cost is INR 10 lakhs in the service sector and INR 25 lakhs in the manufacturing sector.

Loan for up-gradation of existing PMEGP/MUDRA units.

  • Objective : The scheme aims at providing existing units with upgradation assistance regarding expansion, whereas financial assistance to the well set-up performing units. Furthermore, the scheme will also facilitate entrepreneurs towards automations and new technology modernization in the present unit.
  • Key Benefits: Maximum subsidy allowance would be 15% of the total project cost (and 20% for Hill States and NER). The financing banks will provide the term loans as the balance amounts of the total project cost.

Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE)

  • Objective : The scheme aims at motivating first generation entrepreneurs towards self-employment by providing credit guarantee funding for third-party guarantee-free / collateral free loans.
  • Key Benefits:
  1. Guarantee on credits for loans up to INR 2 crores, without third-party guarantee and collateral.
  2. Guarantee on coverages range from 75% (others) to 85% (Micro Enterprise up to INR 5 lakh).
  3. 50% of the coverage is for retail activity.

 

  1. Procurement and Marketing Support (PMS) Scheme

  • Objective : The scheme aims at developing the marketability of services and products in the MSME sector. Promoting access initiatives and awareness about various marketing relevant topics. Creating awareness regarding e-marketing, GeM portal, GST and other related topics etc.
  • Key benefits :
  1. Involvement of Individual MSEs in domestic Exhibition/ Trade Fair
  2. Developing capacity of MSMEs in Development of Marketing Haats/ Modern Packaging Technique.
  3. Organizing events like Domestic Trade Fair& Exhibition/ Awareness programs/ National & International Workshops & Seminars/ Vendor Development Programs.

 

  1. Credit Linked Capital Subsidy Component (CLCS & TU Scheme)

 

  • Objective: The scheme aims at facilitating technology upgradation in MSEs with state-of-the-art technology, with or without expansion and also for new MSEs which have set up their facilities by providing an upfront capital subsidy of 15 per cent (on institutional finance of up to INR 1 crore availed by them).
  • Key benefits :
  1. Induction of established and improved technologies.
  2. 15% Subsidy on institutional credit up to INR 1.00 crore with a subsidy cap of INR 15.00 lakh.
  3. International Cooperation Scheme (ICS)

 

  • Objective : The scheme aims at enhancing the competency of MSMEs towards technology advancements to market and produce products better.
  • Key benefits :
  1. IC Scheme facilitates financial assistance by providing reimbursements for space rent, airfare, advertisement & publicity charges, freight charges and entry/registration fee on reimbursement basis.

Micro & Small Enterprises Cluster Development Programme (MSE-CDP)

  • Objective: The scheme aims at the growth of MSEs by addressing advancements in sustainable & green manufacturing technology, market access, skills & quality, etc. Creating infrastructural facilities in existing Clusters of MSEs and Industrial Areas.
  • Key benefits :
  1. Creating Common Facility Centers including in Plug & Play Facilities.
  2. Support for Flatted Factory Complexes and Infrastructure Development Projects

 

Interest Subsidy Eligibility Certificate (ISEC)

  • Objective: The scheme aims to provide funding for the khadi programme undertaken by khadi institutions through mobilizing funds from banking institutions, thereby bridging the gap between the actual fund requirement and the availability of funds from budgetary sources.
  • Key Benefits:
  1. Under the scheme credit would be made available at a concessional rate of interest as per the requirement of the Khadi Institutions (KI), thus enabling the mobilization of funds from the Financial Institutions / Banks for the additional requirements
  2. Under the scheme, the benefiting KIs are only required to pay a concessional rate of interest, which is just 4%. And, the difference between the actual Interest charged by the lending bank and 4%, concessional rate of interest would be borne by the KVIC as an ‘interest subsidy’

 

  1. Entrepreneurship and Skill Development Programme (ESDP) Scheme

  • Objective: The scheme aims to promote new enterprises and enable and facilitate capacity building of the existing MSMEs. Further, the scheme aims to promote and inculcate entrepreneurial culture in the country.

Key benefits: The scheme aims to expand the base of entrepreneurship to different sections of the society through skill development, achievement and providing motivation for self-employment and entrepreneurial skill

prior, only manufacturing and service industries were covered by MSME registration. However, the government declared in July 2021 that both the wholesale and retail sectors will fall within the MSME category.

Registration under MSME is not mandatory. However, it is advised that you get registered because it comes with various benefits that you won’t get otherwise.

No, There is no particular form of legal organisation to be adopted to be eligible for benefits under the MSMED Act. Benefits under MSMED Act will be available so long as the enterprise satisfies the investment and turnover limits as above and has filed Entrepreneur’s Memorandum (EM) or Udyog Aadhaar Memorandum (UAM) or Udyam Registration. It does not matter whether the enterprise is a proprietorship or partnership firm or a limited liability partnership (LLP) or a company or Hindu undivided family (HUF).

According to Notification No. SO 1642 (E), dated 29-9-2006, an enterprise may be:

  • proprietorship,
  • Hindu undivided family,
  • association of persons,
  • co-operative society,
  • partnership firm/LLP,
  • company,
  • undertaking, or
  • any other legal entity

In India, a private limited company has perpetual existence unless it is dissolved or wound up according to the provisions of the Companies Act, 2013.

Perpetual existence means that the company continues to exist even if its shareholders or directors change over time. The company is considered a separate legal entity from its owners, and its existence is not dependent on the life or actions of any individual associated with the company. The death, retirement, or resignation of a director or shareholder does not affect the continuity of the company.

MSMEs are entitled to tax holiday under section 80-IAC of the Income-tax Act, 1961 only if they are start-ups as defined in the Latest Start-up Notification (LSN) and satisfy the conditions stipulated in section 80-IAC. For non-start-ups MSMEs, no tax holiday is available under the Income-tax Act.

Yes, traders can also apply for Udyam registration and get the credit facilities for their business requirements from various Banks and financial institutions.

MSME registration process in online. You can contact us for smooth application.

If you want to get the Udyam registration certificate, download it from the official website Ministry of Micro, Small & Medium Enterprises (msme.gov.in).

No, you cannot have 2 Udyam registration with one Aadhar card. If your enterprise is involved in more than one activity or has more than one branch, all the branches and activities related to the business must be stated under the single Udyam registration.

Government fee is Nil. Complianto team can help you getting MSME registration at a reasonable price.

The Ministry implements the “Technology and Quality Upgradation Support to Micro, Small and Medium Enterprises (TEQUP)” which focuses on two important aspects, namely, enhancing competitiveness of MSME sector through Energy Efficiency and Product Quality Certification. The basic objective of this scheme is to encourage MSMEs in adopting energy efficient technologies and to improve product quality of manufacturing in MSMEs.

It is a well-known fact that energy consumption is a significant component in the cost structure of almost any manufacturing/ production activity. Adopting energy efficient technologies curtails the cost of energy there by reducing production cost and increasing competitiveness. Under this scheme, a capital subsidy of 25% of the project cost subject to a maximum of Rs. 10.00 lakh shall be provided to the registered MSME units. While 25% of the project cost will be provided as subsidy by the Government of India, the balance amount is to be funded through loan from SIDBI/banks/financial institutions. The minimum contribution as required by the funding agency will have to be made by the MSME unit.

There is no validity and therefore till existence of business it is valid but you can update your details whenever any change occur.

The TEQUP scheme provides subsidies to MSME units to encourage them to acquire product certification licenses from national and international bodies. This helps to improve their competitiveness. The subsidy is 75% of the actual expenditure incurred by the units for obtaining product certification licenses from national and international standardization bodies. The maximum government assistance allowed per MSME is Rs.1.5 lakh for obtaining product licensing/marking to national standards and Rs. 2.0 lakh for obtaining product licensing/marking to international standards. An MSME unit can apply only once under the scheme period.

With the enactment of the Micro, Small and Medium Enterprises Development (MSMED), Act 2006, for the goods and services supplied by the MSME units, payments have to be made by the buyers as under: The buyer is to make payment on or before the date agreed on between him and the supplier in writing or, in case of no agreement, before the appointed day. The agreement between seller and buyer shall not exceed more than 45 days. If the buyer fails to make payment of the amount to the supplier, he shall be liable to pay compound interest with monthly rests to the supplier on the amount from the appointed day or, on the date agreed on, at three times of the Bank Rate notified by Reserve Bank.

For any goods supplied or services rendered by the supplier, the buyer shall be liable to pay the interest as advised at above. In case of dispute with regard to any amount due, a reference shall be made to the Micro and Small Enterprises Facilitation Council, constituted by the respective State Government. To take care of the payment obligations of large corporate borrowers to MSEs, banks have been advised that while sanctioning/renewing credit limits to their large corporate borrowers (i.e. borrowers enjoying working capital limits of Rs. 10 crore and above from the banking system), to fix separate sub-limits, within the overall limits, specifically for meeting payment obligations in respect of purchases from MSEs either on cash basis or on bill basis.

Banks are also advised by RBI to closely monitor the operations in the sub-limits, particularly with reference to their corporate borrowers’ dues to MSE units by ascertaining periodically from their corporate borrowers, the extent of their dues to MSE suppliers and ensuring that the corporate pay off such dues before the ‘appointed day’ /agreed date by using the balance available in the sub-limit so created. convert to active voice.

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and knowledge economy

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to promote India as the most
preferred global manufacturing destination

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