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MSME (Micro Small & Medium Enterprise) |
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MSME (Micro Small & Medium Enterprise) |
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MSME Registration and its benefits
MSME stands for micro, small and medium enterprises (MSME). This sector, comprising of manufacturing, infrastructure, service industry, food processing, packaging, chemicals, and IT, has emerged as the most vibrant and dynamic engine of growth of Indian economy over the past few decades. (Activities not covered under MSME. Click here)
Since September, 2015, in view of promoting ease of business, an online filing system under Udyog Aadhar Memorandum (UAM) based on self-declared information has been put in place. Registration under UAM is free. Link: https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx
*Both conditions are compulsory Note: While computing the total investment, the original investment (purchase value of items) is to be taken into account excluding the cost of pollution control, research and development, industrial safety devices, and such other items as may be specified, by notification of RBI. For E.g.: If an enterprise started with a set of plant and machinery purchased in 2008 worth ₹ 70.00 lakh has procured additional plant and machinery in the year 2013 worth ₹ 65.00 lakh, then the total investment in Plant & Machinery may be treated as ₹ 135.00 lakh.
Note 1: The Proprietor in the case of a proprietary firm, managing partner in the case of a partnership firm and a Karta in the case of a Hindu Undivided Family (HUF), shall provide his Aadhaar Number in the memorandum; If your Mobile Number is not linked with Aadhaar then select one of the following options:
Note 2: One applicant can have more than one enterprises doing business and each one can be registered for a separate Udyog Aadhaar and with the same Aadhaar Number as Enterprise 1 and Enterprise 2 etc. Note 3: After registration MSMEs are to furnish information relating to their enterprises online to the Central Government in the data bank maintained by it at www.msmedatabank.in.
Note: The above benefits are available on making application to the concerned ministry/authorities. Note 2: Some benefits are available only in the initial year of enterprise.
As per the National Sample Survey (NSS) 73rd round, conducted by National Sample Survey Office, Ministry of Statistics & Programme Implementation during the period 2015-16, there were 633.88 lakh unincorporated non-agriculture MSMEs in the country engaged in different economic activities - 196.65 lakh in Manufacturing, - 0.03 lakh in Non-captive Electricity Generation and Transmission - 230.35 lakh in Trade and - 206.85 lakh in Other Services excluding those MSMEs registered under (a) Sections 2m (i) and 2m (ii) of the Factories Act, 1948, (b) Companies Act, 1956 and (c)construction activities falling under Section F of National Industrial Classification (NIC) 2008. (Source: MSME Annual report 2018-19)
Compilation by: CA. Saurabh Verma
By: RSY Associates - May 18, 2020
Discussions to this article
Import of Capital Goods on zero duty subject to meeting export obligations; is this subject to EPCG licence or without EPCG licence?
The export obligation for zero import duty is with respect to EPGC scheme only. The complete text can be found at: Link: "https://msme.gov.in/sites/default/files/MSME_Schemes_English_0.pdf"
Dear Sir, Purchase of land and construction and sale of apartments is a trading activity or service activity with reference to MSME.
Dear Sir, You have quenched my thirst for knowledge on the issue. Your article has answered my queries which people used to ask me but I could not response. Pl. continue contributing to the visitors of TMI. Your article is very informative and timely. TMI can service as a springboard in your profession. There is a large number of silent visitors who never like to react (respond). I have saved your article as a ready reckoner. Thanks a lot. K.L.SETHI
Dear Bay.yareddy DK Ji, The registration in MSME is governed by National Industrial Classification (for all economic activities). Link to download such file: https://udyogaadhaar.gov.in/UA/Document/nic_2008_17apr09.pdf As observed, the construction is mentioned under the head Manufacturing, Section F - Division 41. However, whether sale of completed flats is covered under such heading is subject to further research. Since i have never came across such case. I cannot comment upon it.
Dear Kasturi Sethi Ji, Receiving appreciation from such senior and experienced expert, is a matter of proud to me. I thank you for your kind words, and assure you that i am here to learn and share among all the participants whether silent or responsive. Thank you once again!
Dear Sir , Is there any notification for change in criteria for MSME ! Or it is just declaration by Minister ! Last time a bill to similar effect was cleared by Loksabha & not by Rajyasabha .
Thanks for clubbing of relevant information pertaining to MSME in one Article. Keep it up.
Cabinet Committee on Economic Affairs (CCEA) Cabinet approves Upward revision of MSME definition and modalities/ road map for implementing remaining two Packages for MSMEs (a)₹ 20000 crore package for Distressed MSMEs and (b) ₹ 50,000 crore equity infusion through Fund of Funds Posted On: 01 JUN 2020 5:43PM by PIB Delhi In line with Government of India's top focus on energising MSMEs in the country, a special meeting of Cabinet Committee on Economic Affairs (CCEA) was convened under the Chairmanship of Prime Minister Shri Narendra Modi, here today, which approved the upward revision of MSME definition and modalities/ road map for laying down effective implementation mechanism for the remaining two announcements under the Atmanirbhar Bharat Package. These include:
With today's approval, implementation Modalities and Road Map for entire components of the Atmnirbhar Bharat Abhiyan package are in place. This will help in attracting investments and creating more jobs in the MSME sector. In the aftermath of COVID-19 pandemic, Prime Minister Shri Modi was quick to recognise the role of MSMEs in building the Nation. As such, MSMEs formed a very prominent part of the announcements made under the Atmanirbhar Bharat Abhiyaan. Under this package, the MSME sector has not only been given substantial allocation but has also been accorded priority in implementation of the measures to revive the economy. To provide immediate relief to MSME sector, various announcements have been made under the Package. The most important ones also included:
Government of India has been taking all necessary steps to ensure that the benefit of these landmark decisions reaches to the MSMEs at the earliest. In this regard, following necessary policy decisions have been already taken and the implementation strategy has been put in place.
To manage all this, a robust ICT based system called CHAMPIONS has also been launched by the Ministry of MSME. The portal is not only helping and handholding MSMEs in the present situation, but is also providing guidance to grab the new business opportunities and in the long run, become national and international Champions. MSME Ministry is committed to support the MSMEs, and the people who depend on them. All efforts are being made to encourage MSMEs to take benefit of the initiatives under the Atmanirbhar Bharat package and our other schemes. Background: Micro, small and Medium Enterprises (MSMEs) popularly called as MSMEs are the backbone of Indian economy. Silently operating in different areas across the country, more than 6 crore MSMEs have a crucial role to play in building a stronger and self-reliant India. These small economic engines have a huge impact on the country's GDP-making a contribution of 29 percent. They contribute to almost half of exports from the country. Additionally, more than 11 crore people are employed in the MSME sector. ****** VRRK/SH
respected sir, recently nursing homes and clincs are included in msmes. now can i regester under udyam and get benefit of msmes. lplease discuss giri
Could you give more information on the kind of concessions can a MSME can avail in electricity bills in Maharashtra? Thanks
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