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MSME or Udyog Aadhaar Registration

Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy. MSMEs not only play a crucial role in providing large employment opportunities but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country.MSMEs need assistance and help from the Government as they are not equipped with technology and resources like big companies. Hence, the government provides schemes, incentives and rebates to this sector of the economy.

We at Balakrishna and Co., Bangalore help the entities to obtain new registration, amendment of existing registrations, consulting on benefits, etc. Our team is well versed with MSME matters. In case, you need these services, we would be glad to assist you. Please write to Prasad@balakrishnaandco.com. Secondly, based on our past experience, we have short listed the most commonly asked questions by the companies regarding MSME. We are sure the following FAQs will answer most of your questions!

+ How are the enterprises classified as Micro, Small and Medium Enterprises?

Micro, Small and Medium Enterprises (MSME) Development Act 2006 classifies MSME into (a) Manufacturing Enterprises and (b) Service Enterprises. The threshold limit of investment in plant and machinery / equipment for the enterprises to be called as Micro, Small and Medium Enterprises is as follows

  Micro Small Medium
Manufacturing Sector Less than Rs.25 lakhs Between Rs.25 Lakhs and Rs.5 Crore Between Rs.5 crore and Rs.10 Crore
Services Sector Less than Rs.10 lakhs Between Rs.10 Lakhs and Rs.2 Cr Between Rs.2 crore and Rs.5 Crore

+ What is Udhyog Aadhar?

The salient features of Udhyog Aadhar Memorandum (UAM) are:

  • The one page simplified registration form would constitute a self declaration format under which the MSME will self certify its existence, bank account details, promoter/ owner Aadhaar details, other minimum basic information required, etc.
  • There shall be no fee for filing the UAM.
  • Udyog Aadhaar Acknowledgement shall be generated and mailed to the email address provided in the UAM which shall contain unique Udyog Aadhaar Number.
  • No supporting document is required to be uploaded or submitted while filing the UAM.

+ What are the benefits of registering under MSME Act?

  • Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) - Collateral free loans up to a limit of Rs.200 lakhs.
  • Credit Linked Capital Subsidy Scheme for Technology Upgradation - aims at facilitating technology up-gradation by providing 15% up-front capital subsidy to MSME units.
  • ISO 9000/ISO 14001 Certification Reimbursement Scheme - Scheme envisages reimbursement of charges of acquiring ISO9000/ISO-14001/HACCP certifications to the extent of 75% of expenditure subject to a maximum of Rs.75,000 in each case.
  • Micro Finance Programme.
  • MSME Market Development Assitance (MDA).

Other registration required to start the business :

Want to consult us?

  • Ph: 9845721255 / 9448080886,
  • Balakrishna & Co|Chartered Accountants,
  • # 24,3rd Floor, Above State Bank of India,
  • 10th Cross, Wilson Garden, Bangalore - 27.

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