MSME/SSI Registration Online
Protect Your Business with Udyog Aadhaar Registration Certificate in India.
Get MSME/SSI/Udyog Aadhaar Registration Online quickly With Life Time Valid Certificate by LegalMaps.
As a small enterprise, you can get
√ Tax exemptions
√ Capital investment
√ Power tariff subsidies
√ Priority sector lending
(Takes 15 working days)
Udyog Aadhaar/MSME/SSI Registration Online - An Overview
A Udyog Aadhaar/MSME/SSI also called Small Scale Industry Registration is a registration from the Ministry of Micro, Small and Medium Enterprises. When a business registers as Udyog Aadhaar/MSME/SSI it becomes eligible to avail government schemes and subsidies that are exclusively available for small businesses.
LegalMaps offers expert service for Udyog Aadhaar/MSME/SSI registration:
- Free consultation
- Data verification: A quick check of all the files are submitted
- Vendor Connect: A dedicated affiliate who processes the Udyog Aadhaar/MSME/SSI online application
- Receipt of License: The certificate will be issued within 15 working days of application submission
SSI registration can be done by enterprises of sizes:
- Micro
- Small
- Medium
Under the MSMED Act, these small size businesses get varying incentives such as:
- Tax exemptions
- Capital investment
- Power tariff subsidies
- Priority sector lending
Registering for SSI is an entirely online process but seeking the help of professionals makes it more quick and easy. LegalMaps assists you to fill the online application and gets the required approval from the official department.
What is MSME/SSI Registration?
Small scale industries (SSI) play a vital role in the socio-economic development of the country. To promote and encourage these small-scale industries, the government of India created the MSMED Act. The Act was created to maintain a list of all the industries registered as Udyog Aadhaar or MSME or SSI. The record aided in providing support and incentives to these registered firms. Furthermore, MSME helped in the employment of people at minimum capital investments. All these entities should possess the certificate of SSI registration, which should be registered with the Government of India’s MSME department under the Act of MSME Development- 2006
The MSMED Act includes:
- Small Scale Industries (SSI).
- Micro, Small and Medium Enterprises (MSME).
- Different sectors have different limits for registering them under the act.
- A manufacturing entity with plants and machinery that necessary an investment of fewer than ₹10 Crores can be an MSME.
- For service enterprises, the amount up to ₹5 crores.
- If the firm or company exceeds the upper limit, at any point in the future, it is not considered as an MSME/SSI.
To avail, the numerous benefits from the Government of India, an SSI Registration or MSME registration certificate is needed. It is an optional registration for businesses but the firms, companies that get registered are eligible for:
- Lesser interest rates on bank loans
- Excise exemption scheme
- Tax exemptions
- Capital investment
- Power tariff subsidies
- Priority sector lending
- Other support
New Udyog Aadhaar replaces MSME / SSI Registration
In order to make the registration process of small or medium level enterprise even more straight forward, a new act created in 2015, known as Udyog Aadhaar. Udyog Aadhaar completely replaces MSME or SSI and is an entirely online process. Under the Udyog Aadhaar, only 1 page needs to be filled to get registration with Aadhaar Card acting as the sole legal document.
Following are the SSI or MSME schemes offered by the government Udyog Aadhaar
Udyog Aadhaar Memorandum (UAM)
UAM was introduced under the MSMED Act, 2006 to promote the ease of doing business for SSIs. A simple 1-page form is needed to be filed and the registration is user-friendly and easy. No documentation is necessary, except the 12-digit Aadhaar card number. Businesses also have provision to file more than one Udyog Aadhaar with the same Aadhaar number. Udyog Aadhaar Memorandum can be filed on a self-declaration basis.
Zero Defect Zero Effect (ZED)
Zero Defect Zero Effect scheme encourages manufacturers to manufacture goods for export purposes that are of the highest quality. If the quality standards are met and goods are exported, the exporters will be eligible for concessions and rebates. If they are not exported, then the goods will be rejected and returned back to India.
Quality Management Standards and Quality Technology Tools
This scheme is aimed at helping micro, small and medium enterprises to produce quality products at competitive market prices by adopting the tools. Through the tools, businesses will be able to optimize their resource, improve quality, reduce the chance of rejection and rework. Under this scheme, businesses will be sensitized about the tools through activities like campaigns, workshops, and seminars.
A System For Monitoring The Grievances
Under the Udyog Aadhaar scheme, the complaints and queries of the businesses will be addressed. The business owners can also track the status of their complaints/queries and open it again if they are dissatisfied with the resolve outcomes.
Why Udyog Aadhaar Registration?
Benefits
In the banking sector, if you need to take the benefits of the MSMED Act of 2006, you will have to opt for MSME registration certificate.
When you register your firm or company with Udyog Aadhaar, the business can leverage many schemes initiated by the State Government and Central Government. In addition to this, for taking the MSMED Act 2006 benefits in the banking sector, MSME registration becomes mandatory.
- Refrain from requesting security deposits
- Concession within the electricity bills
- Increased chances of winning Govt. tenders
- Reduction in Govt. fee while applying for patents and trademark registration.
- Easy and cheaper rate of interest on bank loans
- Reservation benefits
- Stamp duty and registration charges are waived off
- Reimbursement under the bar code registration
- Industrial promotion subsidy
- Reduction within the rate of the interest by major banks
Type of MSME Registrations
Provisional MSME Registration
The first step of MSME registration is provisional which is given during the time period before the establishment of the entity or the pre-investment period of the firm. At this time, the enterprise qualifies for:
- Obtaining facilities for accommodation, land, etc.
- Obtaining important approvals and NOCs
- Obtaining clearances from regulatory bodies
such as Pollution control board and Labour Regulations
The Provisional SSI Registration Certificate (PRC) enables small units to get term loans and working capital from financial institutions and banks under priority sector lending.
Permanent MSME Registration
The second kind of MSME registration is permanent. it’s given to industrial units that are already functioning. Though the Act isn’t mandatory, it’s immensely beneficial for firms to own the support of Govt.
Guidelines for online MSME / SSI Registration
Apply For Provisional Registration Certificate (PRC)
A PRC is allotted to new enterprises without any field inquiry. It’s purely an application-based form. Therefore, It’s to apply within the precise prescribed form before operations begin within the unit. Once the application is submitted, the provisional registration is going to be provided without a physical inspection of the unit. The procedure is quick in order that newly established firms can avail of multiple benefits, quick loans, and other necessary approvals.
Starting The Business
The provisional certificate is valid for a period of 5 years and therefore the enterprise needs to become operational within it. If the business fails to commence work under 5 years, again a new application must be submitted.
Applying For Permanent SSI Registration
If the entrepreneur successfully begins operations within 5 years, then they apply for permanent certification. The registration is completed at the Ministry of MSMEs. The permanent SSI registration is granted as long as specific conditions are met and mandatory documents are submitted.
- The unit has obtained statutory and administrative clearances as needed.
- The unit doesn’t violate any regulation or restriction.
- The value of plant and machinery within the unit doesn’t exceed the prescribed limits.
- There should be proof the enterprise isn’t owned, a subsidiary of nor controlled by another industry.
At LegalMaps, we are committed to helping you overcome every any obstacle which will arise in MSME registration for your enterprise.
Below documents required for MSME / SSI Registration
- Address proof of the business.
- Copies of sale and purchase bill.
- Partnership Deed / MoA and AoA.
- Copy of licenses.
- Copy of bills of machinery purchased
- For firms or companies that are listed in Schedule -III of the Industrial Licensing Exemption Notification, no Industrial license is required. Every other enterprise must obtain it for the Provisional Registration Certificate (PRC) application.
- For the registration and document process, all statutory and administrative clearances got to be obtained such a NOC from the pollution board to prove that no restrictions are being violated.
Eligibility of Udyog Aadhaar - Who should obtain MSME/SSI Registration?
The eligibility for the scheme of MSME or SSI registration depends on the size of the business of the enterprise. Udyog Aadhaar registration is applicable for Proprietorship Firm, Hindu Undivided Family(HUF), one-person company(OPC), Partnership Firm, public Ltd. , private Ltd., production company, co-operative societies, indebtedness partnership(LLP) or any association of persons or the other undertaking.
Micro Enterprises:
A manufacturing enterprise should have an investment of below ₹25 lakhs in plant and machinery. A service enterprise should have below ₹10 lakhs invested. These micro-enterprises are the smallest entities.
Small Enterprises:
For manufacturing enterprises, the investment has got to be between ₹25 lakhs and ₹5 crores in plant and machinery. For service enterprises, the investment range is between ₹10 lakhs and ₹2 crores.
Medium Enterprises:
If it’s a manufacturing enterprise, the investment in plant and machinery has got to be between ₹5 crore and ₹10 crores. If it’s a service enterprise, the investment range is from ₹2 crores to ₹5 crores.
How we can help with MSME/SSI Registration? Why LegalMaps
In 10 to 20 working days time LegalMaps obtains your MSME/SSI registration (without factoring in Govt. approval time).
2 Working Days
Following are the documents you need to be submitted with us:
- PAN card
- The rental agreement for the office address (if the property is rented)
- Electricity bill
- Identity and address proofs of the proprietor/partners/directors
- For private limited companies:
- Memorandum and Articles of Association
- Form 32
- Form 18
- Certificate of incorporation
- For Partnerships:
- Partnership deed or agreement
2 Working Days
The provided documents are filed along with the registration application. In some states, additional paperwork might be needed such as sale bills, purchase bills of machinery and municipal clearance.
15 Working Days
If production has not begun, a provisional certificate is issued which is valid for 5 years. It becomes permanent when the said unit is functioning.
FAQs on MSME/SSI Registration
The PRC expires at expire of 5 years, at which point you’ll re-apply if the unit isn’t yet operational, or if the unit exceeds investment limits set by the MSMED Act. Once you commence operations, you’ll apply for the Permanent License.
To get registration, total plant and machinery cost should be below or up to ₹25 crores for manufacturing units and ₹10 crores for service units. While calculating this number, the worth of land and building won’t be counted toward the entire investment. Also, the purchase cost of the equipment and plant and machinery is taken under consideration. Depreciation can’t be factored in.
All financial institutions and banks recognise MSMEs and have created special schemes for them. This usually includes priority sector lending, which suggests that the likelihood of your business being sanctioned a loan is high. loan interest rates also will be lower. There can also be preferential treatment just in case of a delay in repayment.
Most states offer those units registered under the MSMED Act a subsidy on power, exemptions of taxes, and entry to state-run industrial estates. especially, there’s a GST exemption in most states and buy preferences on goods produced. depending on your business, you’ll also enjoy an excise exemption scheme and exemption from certain direct taxes within the initial years of your business.
MSME registration is Micro, Small and Medium Enterprises under MSMED (Micro, Small and Medium Enterprises Development) Act. This helps small businesses to grow and acquire benefits from the various government scheme.
The listed documents are required for MSME/SSI registration :
- Aadhar Number
- Owners name
- Name of the Enterprise
- Type of organization
- PAN number
- Official address
- Date of commencement
- Bank details
- Personal details
Tax Benefits
Easy Clearance of Pending Payments
50% discount on Govt fee of trademark and Patent
Lower Interest Rates For Bank OverDraft (OD)
Eligible for Mudra Loan Scheme
Apply Government Tenders Easily
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