MSME or Udyog aadhar registration
MSME stands for micro, small and medium enterprises and any enterprise that falls under any of these three categories.
MSME or Udyog Aadhaar registration is provided to micro, small, medium-sized businesses in India under the Micro, Small and Medium Enterprise Development Act, 2006 (MSMED). Udyog Aadhaar used to be referred to as MSME registration earlier. Now, the process for obtaining MSME registration has been merged with Udyog Aadhaar registration and made online by the Government. The main objectives of the MSME department with respect to
providing Udyog Aadhaar registration are as follows:
- To enable the micro, small and medium enterprises to compete with international competition efficiently;
- To promote the growth of micro, small and medium enterprises on a large scale to effectively tackle the widespread problems of unemployment and poverty;
- To extend the benefits of various government scheme at one stop to the SSI units;
- To safeguard SSI from financial harassment in the hands of big industries.
Classification of MSME enterprises with effect from 1 st July 2020
| Category | Investment in plant & machinery or equipment Rs. | & Turnover Rs. |
|---|---|---|
| Micro | Does not exceed 1 Crore | Does not exceed 5 Crore |
| Small | 1 – 10 Crores | 5 – 50 Crores |
| Medium | 10 – 50 Crores | 50 – 250 Crores |
Advantages of MSME Registration
- MSME (whether in manufacturing sector or service sector) entity is eligible for collateral or mortgage free loan from bank for an amount up to Rs. 1 Crore through SIDBI under Credit Guarantee Scheme
- Overdrafts at lesser interest rate: While availing bank overdraft facility from a bank, MSME has a reason to smile as Banks need to offer 1% less interest rate on the overdraft extended to the MSME which is registered with Udyog Aadhar.
- Concessional electricity: TA registered MSME can avail concessional rate of electricity for their unit by making a written application along with the certificate issued after registration as MSME to the electricity department.
- Priority treatment in government procurements: Central or state government departments have been mandated to extend priority treatment to MSME while procuring goods or services for the consumption of goods or services for public purposes