To promote the growth of Micro, Small & Medium Enterprises, the government of India gives various concessions and extends financial assistance exclusively to the units or enterprises which qualifies to be a micro, small and medium enterprises. The Micro Small & Medium Enterprises Development Act 2006 makes it mandatory for MSME to register themselves with government and to obtain Udyog Aadhar for availing benefits provided under MSME Development Act. The terminology like MSME, SSI or Udyog Aadhar is one and same thing. In other words, there is only one registration which a micro, small and medium enterprises has to obtain and that is UDYOG AADHAR. MSME is the backbone of the modern Indian economy and is considered as the growth engine for equitable and sustainable economic development of the country. Under MSME all kinds of enterprises can obtain registration, like manufacturers the service providers are also eligible for MSME benefits. Hence they are also required to get UDYOG AADHAR Registration.
In the banking sector, if you need to avail the benefits of the MSMED Act of 2006, you will have to opt for MSME registration.
When you register your firm with Udyog Aadhaar , the business can leverage many schemes initiated by State and Central Government. In addition to this, for availing the MSMED Act 2006 benefits in the banking sector, MSME registration becomes mandatory.
NO Government Fee for MSME Registration (Adhar Udhyog)
MSME registration is a mandatory registration to avail all benefits of the Govt. Scheme. The registration process is a very simple. There is no Govt fee for registration process.
Prices start with 6499/- (inclusive all)
The Provisional Registration Certificate (PRC) will be valid for a fixed period of 5 years from the date of issue of PRC.
For a registration, total plant and machinery cost should be up to Rs. 25 crore for manufacturing units and Rs. 10 crore for service units. While calculating this number, the value of land and building will not be counted toward the total investment. Also, the original cost of the equipment and plant and machinery is taken into account. Depreciation cannot be factored in.
Micro, Small and Medium Enterprise (MSME), loans are mostly offered to start-ups and small business owners. The MSME loan’s repayment tenure vary from lender to lender and the interest rates offered are majorly based on the loan amount and applicant’s profile and business history.
All banks and NBFC recognise MSMEs and have created special schemes for them. This generally includes priority sector lending, which means that the likelihood of your business being sanctioned a loan is high. Bank loan interest rates will also be lower. There may also be special treatment in case of delay in repayment.
Most states offer benefits to those units registered under the MSMED Act, a subsidy on power, taxes, and entry to state-run industrial estates. In particular, there is a exemption in sales tax in most states and purchase preferences on goods produced. Depending on your business, you may also enjoy an exemption from certain direct taxes and excise exemption scheme in the initial years of your business.