In a developing country like india micro, small and medium enterprise industry are the backbone of the economy. When these industry expand the country economy as a whole expand and flourish. Small scale industry is another name for this type of enterprise.
Even if the company is in the manufacturing line and the service line registrations for both these areas can be obtained through the micro, small and medium enterprise act and udyam registration. Although the government has not yet made this registration necessary it is advantageous to have one firm registered under it because it provides a lot of benefit in terms of taxation and setting up the business as well as credit facilities and loans.
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The micro, small and medium enterprise became operational on october 02, 2006. It was created to encourage as well as assist and increase the competitiveness of micro, small and medium sized enterprise.
What are micro, small and medium enterprise?
Previously the micro, small and medium enterprise classification system was based on the criteria of plant and machinery investment. So to enjoy the micro, small and medium enterprise benefit the micro, small and medium enterprise have to limit their investment to a lower limit as mentioned below.
The registration process for micro, small and midsize enterprise.
The government website https://udyamregistration.gov.in can be used to register micro, small and medium enterprise. The registration of micro, small and medium enterprise can be done under the following two categories in the portal.
For new entrepreneur who are not yet registered as micro, small and medium enterprise and those with entrepreneur memorandum two.
For those having registration as udyog aadhaar memorandum and for those already having registration as udyog aadhaar memorandum through assisted filing
For new entrepreneur who are not registered yet as micro, small and medium enterprise and those with entrepreneur memorandum two.
New entrepreneur and entrepreneur having entrepreneur memorandum two registration need to click the button for new entrepreneur who are not registered yet as micro, small and medium enterprise and those with entrepreneur memorandum two shown on the home page for registering micro, small and medium enterprise. New registration of micro, small and medium enterprise is done by entering the aadhaar card number and permanent account number.
When clicked on the for new entrepreneur who are not registered yet as micro, small and medium enterprise and those with entrepreneur memorandum two button on the homepage of the government portal it opens the registration page asks for the entrepreneur aadhaar number as well as his name. After you have entered these details click the validate and generate one time password button. Once this button is clicked and one time password is received and entered the permanent account number verification page opens.
The entrepreneur must enter the type of organization and the permanent account number and click on the validate permanent account number button. The portal gets the permanent account number details from the government database and validates the permanent account number of the entrepreneur.
After verification of the permanent account number the udyam registration box will appear and the entrepreneurs need to fill in the personal details and details of the plant and industry.
Once the details are filled the submit and get final one time password button is clicked the micro, small and medium enterprise is registered and a message of successful registration with a reference number will appear. The udyam registration certificate is issued after the registration is verified which may take a few days.
Registration for entrepreneurs already having udyog aadhaar memorandum.
For those already having registration as udyog aadhaar memorandum they need to click the button for those having registration as udyog aadhaar memorandum and for those already having registration as udyog aadhaar memorandum through assisted filing shown on the home page of the government portal. This will take you to a screen where you may enter your udyog aadhaar number and choose a one time password option. The options provided are to obtain one time password on mobile as filled in udyog aadhaar memorandum and obtain one time password on email as filled udyog aadhaar memorandum. After choosing the one time password option validate and generate one time password is to be clicked. The registration data must be filled in when the one time password has been entered and the udyam registration will be complete.
The advantage of registering a micro, small and medium enterprise.
The bank loan becomes cheaper as a result of the micro, small and medium enterprise registration since the interest rate is very low around 1 per cent to 1.5 percent. Interest rates are far lower than those charged on a traditional loan.
It also allowed credit for the minimum alternate tax to be carried forward for up to 15 years instead of 10 years.
Once registered the cost of getting a patent done and the cost of setting up the industry reduce as many rebates and concessions are available.
Micro, small and medium enterprise registration helps to acquire government tenders easily as udyam registration portal is integrated with the government electronic marketplace and various other state government portals which give easy access to their marketplace and electronic tenders.
There is a one time settlement fee for non paid amounts of micro, small and medium enterprise.
Information needed to register a micro, small and medium enterprise.
Aadhaar Card and permanent account number card are the only documents required for micro, small and medium enterprise registration. Micro, small and medium enterprise registration is fully online and no proof of documents is required. Permanent account number and details on investment and turnover tied to the good service tax enterprise will be taken automatically by the udyam registration portal from the government databases. The udyam registration portal is fully integrated with income tax and goods services tax identification number systems.
Good services tax is not compulsory for enterprises that do not require a good services tax registration under the good services tax law. However the enterprise that need to compulsorily obtain good services tax registration under the good services tax regime need to have good services tax registration for obtaining udyam registration.
Those who have udyog aadhaar memorandum registration and any other registration issued by any authority under the ministry of micro, small and medium enterprise, will have to re register themselves in the udyam registration portal by clicking on the for new entrepreneur who are not registered yet as micro, small and medium enterprise and those with entrepreneur memorandum two.
The enterprise having udyog aadhaar memorandum registration need to migrate to udyam registration by 31st december, 2021. If the entrepreneur having udyog aadhaar memorandum registration do not migrate to udyam registration by 31st december, 2021, the udyog aadhaar memorandum registration will be invalid and they will not be able to receive the benefit provided to the micro, small and medium enterprise.
Micro, small and medium enterprise scheme launched by the government are.
Other credit support schemes and the prime minister employment generation programme
For micro and small enterprise there is a credit guarantee trust fund.
Certificate of interest subsidy eligibility.
Development of khadi and village as well as coir industry.
Make a science and technology plan.
Market development and marketing strategy.
Revamped scheme of fund for regeneration of traditional industries.
Coir vikas yojana.
Upgrading technology and obtaining quality certification.
Financial support to micro, small and medium enterprise in zero effect zero defect certification scheme.
A scheme for promoting innovation and rural industry as well as entrepreneurship.
Manufacturing competitiveness programme at the national level.
Upgrading technology with a credit linked capital incentive.
Micro, small and medium sized enterprise receive marketing help and advice.
Lean manufacturing competitiveness for micro, small and medium enterprise.
Micro, small, and medium sized enterprise can benefit from a design clinic.
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Micro, small, and medium sized enterprise receive technology and quality improvement assistance.
Entrepreneurial and managerial development of small and medium enterprise through incubators.
Enabling the manufacturing sector to be competitive through the quality management system and quality time together.
Building awareness on intellectual property rights.
Marketing promotion schemes.
Marketing assistance scheme.
Scheme to assist with procurement and marketing.
Program for entrepreneurship and skill development.
Support for educational institution.
Cluster development for micro and small enterprise.
Surveys and investigation as well as policy research are all part of the plan.
National scheduled caste and scheduled tribe hub.
Scheme of information and education as well as communication.