MSME/Udhyam Registration
The Micro- Small and Medium Enterprises (MSMEs) are small sized entities, defined in terms of their size of investment and turnover. The MSMEs are classified in two parts:-
Manufacturing Enterprises: The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery and Annual turnover.
Service Enterprises: The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment and Annual Turnover.
Revised MSME Classification:
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Criteria: Investment and Annual Turnover
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Classification
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Micro |
Small |
Medium |
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Manufacturing and Service |
Investment below Rs. 2.5 cr. And Turnover below Rs. 10 cr. |
Investment below Rs. 25 cr. And Turnover below Rs. 100 cr. |
Investment below Rs. 125 cr. And Turnover below Rs. 500 cr. |
Definition of Small Company as per Companies Act 2013
According to Section 2(85) of the Companies Act 2013, a small company definition meets the following conditions:
Condition 1: Paid-up capital of the company should not exceed INR 4 Crores, or such a higher amount specified should not exceed INR 10 Crores.
Condition 2: Turnover of the company should not exceed INR 40 Crores, or such a higher amount specified should not exceed INR 100 Crores.
However, it is essential to note here that the following companies, even though they meet both of the above small company definition MCA conditions, are not eligible to qualify as a small company-
- A public company
- A holding company
- A subsidiary company
- Company registered under section 8
- A company that is governed by any particular act
Benefits of MSME Registration:
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S.No. |
Benefits |
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1. |
Collateral free loan from Banks(Without any security)
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2. |
50% subsidy on Patent registration
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3. |
1% exemption on interest rate on Overdraft Facility from banks
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4. |
Government tenders are now open for MSMEs
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5. |
Concession in electricity Bill
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6. |
Eligible for Industrial Promotion subsidy
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7. |
Expenditure reimbursement of ISO Certification charges
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LIST OF DOCUMENTS AND INFORMATION REQUIRED FOR UDHYAM REGISTRATION
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Documents Required
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Information Required |
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PAN Card of the Firm
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Firm Name |
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PAN Card of the Owner/Authorized Person
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Address of the Firm |
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Aadhar Card of the Owner/Authorized Person
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Social category (General, ST, SC) |
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MOA and AOA [For Pvt. Ltd Company]
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No. of employee (Male/Femail) |
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Certificate of Incorporation [For Pvt. Ltd Company and NGO/Society/Trust]
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Mobile No. |
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Partnership Deed [For Partnership Firm]
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Mail Id |
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ByLaws and Constitution |
Bank Account Number and IFSC
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Nature of Business
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Amount of Investment in Plant & Machinery
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