What is MSME?
MSME is the short form of Micro Small Medium Entrepreneur. Any of the above enterprises can get registered under Ministry of Micro, small and medium Enterprises. MSME’s are the back bone of Indian Economic growth. Hence the Government of India and respective state Governments are endowing with many schemes and funds for the benefit of MSMEs. In order to avail those benefits, it is mandatory to registry the firm/company under the said registration. It also acts as the address proof for opening a Current Account in Banks.
Udyog Aadhar Registration:
Udyog Aadhar was introduced by the Central Government for the purpose of encouraging Online Registration of the MSME. Before October 2016, it is a complicated process to obtain a MSME Registration and submit Memorandum I and II. Then the ‘Kamath Committee’ recommended a single window simplified system.
Time Duration to Form a Society
- The Society Registration in Chennai takes 2 months min to get registered.
- For Society Registration in Tamil Nadu other than Chennai, it will take a minimum of 30 to 40 days.
- For Society Registration in Bangalore, it will take 10 to 12 working days
- There is no maximum limit of members for a Society
- A society cannot be legally valid if it is formed for Profit.
- The object of the society can be changed with the consent of the Registrar
- No stamp paper is required to form a Society
MSME category based on investment
|MICRO||Less than 25 Lakhs of Invention.||Less than Rs. 10 Lakhs of Investment.|
|SMALL||Investment is more than Rs.25 Lakhs but less than Rs. 5 Crore.||Investment is more than Rs.10 Lakhs but less than Rs. 2 Crore.|
|MEDIUM||The Investment is more than 5 crore but not exceeds 10 crore||The Investment is more than 2 crore but not exceeds 5 crore|
Advantages of Udyog Aadhar/MSME Registration
Easy Sanction of Bank Loans: By submitting the MSME Memorandum, the firm/company is entitle to enjoy certain priority loans from Banks as per the direction of the Reserve Bank of India.
Acts as Address proof: The Udyog Aadhar/MSME acts as a proof of existence of the firm. Hence it can be used as office proof for opening a Current Account.
Government Sanctions/Schemes: Udyog Aadhaar Registration is beneficial in the way that you can enjoy all the Government Schemes and sanctions that are granted by the Central Government provided if you are a Registered MSME.
Opportunity to participate in Trade Shows and Exhibitions: One other benefit is that the registered MSMEs can enjoy participation in various Trade Shows with a cut-price fee.
- Aadhar Card of the Proprietor/Partner/Director.
- Account Details of the Proprietor/Partner/Director. & NIC Code.
Features of Udyog Aadhar Registration
- Udyog Aadhar provides a unique 12 digit ID for registration
- It acts as a Address proof for existence of the firm
Using the Aadhar Card, an OTP need to be generated
The OTP need to be updated on the form
Enter the Bank Details, NIC & DIC Code
On form submission, the Memorandum is generated.