
Need For UDYAM/MSME Registration in Start-Ups – Overview
The Micro, Small and Medium Enterprises collectively known as MSME contribute to the GDP, employment and the export sector of India. Around 30-35% (approx.) of the country’s GDP depends upon MSME.
According to the Press Information Bureau, the MSME contributed 29.15% to India’s GDP in 2021-22 and reflected around 40.83% of GVA (Gross Value Added) to the country’s manufacturing sector. Consequently, The Ministry of Micro, Small and Medium Enterprises issues MSME Registration Certificate to-
- Promote the ‘Atma-Nirbhar Bharat’ initiative
- Assure Legal, Financial, and Tax assistance to the MSME businesses
- Leverage Start-ups with various financial, Legal and Tax concession
- Increase the demand of the products manufactured by Micro, Small & Medium Enterprises in domestic
and international markets
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Key Benefits of MSME Registration in Micro, Small & Medium Enterprises
- Easy to avail Collateral Free Loans via CGTMSE (Credit Guarantee Fund Trust)
- A valid MSME Registration Certificate assures exemptions on overdraft interest, by reducing financial burdens easily
- Assured protection to avoid Delayed Payments from Customers
- Easy to meet the eligibility for obtaining bank loans at lower interest rate
- Ample scope of getting subsidies and concessions on Electricity Bill payment and maintenance
- Leveraging Startups to take part in International Trade Shows, Exhibitions, Conferences, etc.
- Availing discount of 50% on the total filing cost and processing fee for the Patent Registration application
- Access to Government Schemes offering discounts on ISO Certification.
- Reduced Interest on Business Loans by reducing Tax Liability, as per Section 36(1) of the Income Tax Act, 1961.
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MSME Classifications & Its Applicability on Micro, Small and Medium Enterprises
According to the Micro, Small and Medium Enterprises Act, 2006 the Ministry of MSME has classified MSME businesses as per yearly turnover, investment Plants, Machinery and Equipment, listed below-
Enterprise Category | Investment in Plant Machinery & Equipment | Turnover |
---|---|---|
Micro Enterprise | Not crossing 1 crore INR | Not exceeding 5 crore INR |
Small Enterprise | Not exceeding 10 crore INR | Not crossing 50 crore INR |
Medium Enterprise | Not crossing 50 crore INR | Not exceeding 250 crore INR |
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Eligibility To Obtain UDYAM Registration Certificate for MSME Owners
- Startup/Business Owners
- Sole Proprietorship Businesses
- Registered Partnership Firms
- Trusts
- Limited Liability Partnerships (LLPs)
- Public & Private Limited Company )
An MSME Business owner must attain following eligibility to get MSME Registration Certificate for their business as per UDYAM-
- The MSMEs must not exceed prescribed limits of investment to acquire Plant and Machinery in Micro, Small, and Medium Enterprises.
- The annual turnover of the MSME must not exceed prescribed limits for micro, small and medium enterprises.
- Small Firms with a turnover up to 75 crores and medium firms with a turnover up to 250 crore INR
- Micro Businesses with investments below 1 crore INR
- The investment for Medium Businesses should be less than 50 crore INR
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Key Documents Required for MSME Registration
- Aadhar Card
- PAN Card
- Business Address
- Bank Account Number
- Business Activity
- NIC 2- digit Code
- Investment Details
- Turnover Details
- Partnership Deed
- Sales and Purchase Bill Copies
- Copies of Licenses and Bills of Purchased Machinery
- MoA (Memorandum of Association)
- AoA (Articles of Association)
- Rent Agreement
- Industrial License approved by the government
- Electricity Bill
- Property Tax Receipt
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Why Choose ARKCA Corporate to Get an MSME Registration Certificate?
ARKCA Corporate owns a team of professional consultants known for offering-
- Errorless Documentation
- Simplify the process of getting a UDYAM Registration Certificate
- Identifying the eligibility of Micro, Small, and Medium Enterprises to get necessary concessions allotted by the Ministry of MSME
Connect with Us for one-stop assistance to get MSME Registration Certificate without any delay!