MSME Registration or Udhyog Aadhaar Registration



MSME means Micro, Small and Medium Enterprises. The MSME is classified into 2 sections, namely, the manufacturing section and also the service section. Manufacturing Enterprises are those who are engaged in the manufacture or production of products. Service Enterprises are those that are engaged in providing or rendering of services and are defined in terms of investment in equipment.
Interest rates on loans are lower after MSME is registered, almost as low as 1%-1.5%, which is proved to be way lower than the normal interest rate. The government launched the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) to provide collateral-free credit to the MSE sector. New enterprises, as well as, existing enterprises are eligible to be covered under the scheme. Legislative and statutory support is given to the MSME like Reservation, among others.
The MSMEs enjoy various subsidies like tax subsidies, power tariff subsidies, capital investment subsidies among others. Credit for Minimum Alternate Tax (MAT) can be now carried forward for up to 15 years instead of 10 years. The registered MSMEs can claim various exemptions provided under Banking Laws, Direct Tax Laws, Excise Laws, among others. With the rise of MSMEs, the employment rate has considerably increased, giving a source of income and livelihood to a large number of people.
Many government tenders are only open to MSME Industries. There is a higher preference for license and certification for business registered under MSME. The cost of getting a patent or setting up the industry reduces if it’s registered under MSME, as many rebates and concessions are available. A registered MSME can get a 50% subsidy on Patent registration. Enterprises registered under MSME are eligible for industrial promotion subsidies. Registered MSMEs can avail of a concession on electricity bills by applying to the board along with a copy of the MSME certificate.
Registered MSMEs are eligible for reimbursement of expenses for ISO Certification by applying to the appropriate authority. The enterprises registered under MSME enjoy the protection against delayed payments whereby the various provisions are made to ensure the payment by the buyer. Being employed in an MSME will prove to be a source of income and livelihood for the women of socially and economically backward classes.