As per the Micro, Small and Medium Enterprise Development Act, 2006 (MSMED), Udyog Aadhaar or MSME registration is a certificate delivered to micro, small, medium-sized businesses in India. At one point of time, Udyog Aadhaar used to be mentioned as MSME registration. Today, the method for gaining MSME registration has been combined with Udyog Aadhaar registration and the Government has made it online.
The key aims of the MSME department with regard to providing Udyog Aadhaar registration are as mentioned below:
- To allow the micro, small and medium enterprises to contest with international competition competently;
- To encourage the development of micro, small and medium enterprises on a big scale to successfully challenge the common difficulties of joblessness and paucity;
- To outspread the paybacks of numerous Government scheme at one stop to the SSI units;
- To protect SSI from monetary provocation in the hands of giant industries.
|Classification||Industrial Sector||Service Sector|
|Micro-Enterprise||Up to Rs. 25 lakhs venture in plant & machinery||Up to Rs. 10 lakhs venture in equipment|
|Small Enterprise||Up to Rs.5 crore venture in plant & machinery||Up to Rs.2 crores venture in equipment|
|Medium Enterprise||Up to Rs.10 crore venture in plant & machinery||Up to Rs.5 crores venture in equipment|
Udyog Aadhaar Eligibility
All businesses cannot get Udyog Aadhaar registration. Simply that units that is categorized as micro, small or medium enterprises according to the table below dependent upon investment in plant and machinery is entitled to Udyog Aadhaar.
Paybacks of Udyog Aadhaar
Udyog Aadhaar registration is offered free of charge by the Government and its modest and stress-free to get online. After procurement of Udyog Aadhaar, an industry can enjoy the following paybacks:
- The candidate will get monetary funding for chipping in foreign expos to display case their goods.
- The candidate will also be entitled for Government subsidies.
- Registering would simplify the trouble-free opening of current bank accounts in the name of the business.
- It would also permit businesses to apply for Government micro business loans and other kind of connected useful schemes.
- At ease approval of bank loans at lesser interest rates.
Documents Requisite for Udyog Aadhaar
The candidate’s personal Aadhaar is the key requisite for procurement of Udyog Aadhaar in the instance of a proprietorship. No additional official papers are necessary other than an email and a cell phone number.
- In the instance of proprietorship, the candidates Aadhaar must be used.
- In the instance of a partnership, the partner’s Aadhaar can be used.
- In the instance of a company, the Director’s Aadhaar can be used.
- In the instance of LLP, the Designated Partner’s Aadhaar can be used.
If a candidate or approved cosigner of a business does not have Aadhaar, then he/she must initially enroll for Aadhaar at an Aadhaar enrolment center. Once, the Aadhaar is acquired, the Udyog Aadhaar process can be ongoing.
Process for Udyog Aadhaar Application
Below are the steps to get Udyog Aadhaar registration done online:
FAQ For Udyog Aadhaar Registration
At the end of five years the PRC terminates, at this point, you may re-apply if the entity is not yet active, or if the unit surpasses investment limits set by the MSMED Act. Once you begin operations, you can try for the Permanent License. For registration, the total cost of plant and machinery should be equal to Rs. 25 crores for industrial units and Rs. 10 crores for service entities. While computing this number, the worth of land and building will not be calculated toward the total investment. Similarly, the actual cost of the equipment and plant and machinery is taken into consideration. Devaluation cannot be considered.
The majority of states provide those entities registered under the MSMED Act a subsidy on power, taxes, and entry to state-run industrial estates. In specific, there is sales tax freedom in the majority of states and buying inclinations on goods created. The Central and State Governments offer certain key assistances to MSME in the early years of business. Exclusion in excise and some direct taxes are just to name a few.
To list a private limited company, at least two people are essential to act as directors and shareholders. The directors should be natural individuals, whereas the shareholders can be natural individuals or corporate entities. In addition, a registered office address in India is also essential for company registration.
Yes, NRIs, foreign nationals and foreign entities can list a company and capitalize in India, dependent on the Foreign Direct Investment standards fixed by the RBI. Still, incorporation rules in India necessitate for one Indian national to be a part of the company on the Board of Directors.