Online Udyog Aadhaar (SSI/ MSME) Registration Overview

A Small Scale Industry Registration, or SSI, is issued by the Ministry of Micro, Small, and Medium Enterprises. When a business joins the SSI program, it gains access to government programs and incentives tailored to small businesses.

Also, Read- udyam registration portal

MSMEs are small companies of any size that meet the following criteria:

• Micro
• Small 
• Medium

These small companies are eligible for a variety of incentives under the MSMED Act, including:

• Prioritized funding for specific industries

• Tax-exempt status

• Capital investment

MSME registration is an entirely online procedure, however, obtaining expert assistance makes it much easier.

What’s the difference between an SSI and an MSME?

India’s socio-economic development is mainly reliant on small businesses. The MSMED Act was enacted by the national government to encourage and assist small businesses. The law was passed in order to maintain track of all MSME and SSI companies. The track record aided in providing help and incentives to these companies. SSI also assisted in the employment of those with little financial means. According to the MSME Development Act of 2006, all of these firms must obtain an MSME registration certificate, which must be registered with the Central Government’s MSME department.

The MSMED Act has the following provisions:

• Small-scale businesses (SSI)

• MSMEs (Micro, Small, and Medium-Sized Enterprises) are small businesses with a lot of potential (MSME)

• For different industries, the law has varied registration restrictions.

• A manufacturing business that has spent less than ten crores in facilities and machinery is classified as an MSME.

• For service firms, the amount is limited to five crores.

• When a company’s income reaches the maximum level, it is no longer considered an MSME.

To take advantage of the Government of India’s many benefits, you’ll need an SSI registration certificate. Although registration is voluntary, those who do so will receive the following benefits:

• Rates of interest are now lower.

• Excise exemption scheme

• Tax credits, capital investments, and power tariffs are all examples of subsidies.

• Additional sources of help

SSI / MSME Registration is being phased out in favor of the new Udyog Aadhaar:

New legislation known as the Udyog Aadhaar was passed in 2015 to simplify the process of launching a small or medium-sized business. MSME has been fully superseded by Udyog Aadhaar, which is performed entirely online. Only one page is required for registration under Udyog Aadhaar, with the Aadhaar Card serving as the only legal document.

The government’s MSME programs are included below Udyog Aadhaar.

The Udyog Aadhaar Memorandum (UAM) was created by the MSMED Act of 2006 to make it easier for MSMEs to do business. The registration procedure is simple and straightforward, requiring only the completion of a one-page form. Other than the 12-digit Aadhaar card number, no other proof is required. Businesses may also use the same Udyog Aadhaar number to register several Udyog Aadhaars. Self-declaration is an option for submitting UAM.

The ZED initiative encourages businesses to develop high-quality export goods. If the conditions are met and the products are dispatched, exporters will be eligible for refunds and incentives. If the products are not exported, they will be rejected and returned to India.

This project aims to use technology to assist micro, small, and medium-sized businesses produce high-quality products at competitive rates. Businesses will be able to maximize resource utilization, enhance quality, and decrease rejection and rework by implementing the technology. Businesses will be trained about the tools through workshops, campaigns, and seminars as part of this program.

This plan will address the issues and challenges that businesses face. Business owners may also follow the progress of their complaints and reopen them if they are unhappy with the outcome.

Why should you register for Udyog Aadhaar?

Benefits:

You must register as an MSME to take advantage of the benefits of the MSMED Act of 2006 in the banking industry.

You may take advantage of a range of state and federal government programs when you register your business with Udyog Aadhaar. Furthermore, in order to benefit from the MSMED Act 2006 in the banking sector, MSME registration is necessary.

• Requesting security deposits should be avoided.

• The cost of electricity will be lowered.

• Increased chances of obtaining federal contracts

• Reduced expenses for submitting patents and registering trademarks in order to acquire intellectual property protection.

• Bank loans are straightforward and low-cost.

• Making a reservation has a number of advantages.

• There are no stamp duty or registration expenses.

• Reimbursement for barcode registration.

• Subsidy for the promotion of industry

• The interest rates of major banks have been reduced.

MSME Registration Types:

MSME Provisional Registration

Provisional MSME registration is given during the period leading up to the creation of the business or during the firm’s pre-investment phase. The firm is currently qualified for:

• Getting a place to stay, land, and other resources

• Obtaining required permissions and authorization letters

• Obtaining regulatory permits from the Pollution Control Board and the Department of Labor, for example.

Small businesses can get term loans and operating capital from financial institutions and banks using the Provisional SSI Registration Certificate (PRC).

Permanent MSME Registration:

The second type of MSME/udyam registration is permanent registration. It is given to established industrial enterprises that are still in operation. Government support is highly beneficial to companies, even if the Act is not mandatory.