Difference between MSME registration and Udyam registration.

The ministry of MSME has changed the name of MSME certificate as Udyam Aadhar Certificate with a unique number termed as UAN in the certificate. But now both are one and only the same thing having difference in certificates. In short Udyam Aadhar registration is the easy and simple way to get MSME registration certificate. It is easier to apply MSME registration after getting a 12-digit UAN in Udyam Aadhar registration certificate.

What is MSME Registration?

MSME registration came into force in 2nd October, 2006 to promote and develop the competitiveness of Micro, Small and Medium Enterprises. It is well known to everyone that MSMEs are that important stuff without which a developing country like India even can’t imagine its growth and development. Hence it was important for the government to enhance the units of MSMEs for which MSME registration was launched so that the registered once can get the benefits of the government schemes.

What is a Micro Small and Medium Enterprise?

As per the MSMED Act, 2006, MSMEs and SSIs were enacted to strengthen and boost the Small-Scale sector in India. Earlier, both Service and Manufacturing were considered distinct and separate from each other, having different amount prescribed for the Investment Required.

However, as per the latest amendment made in the definition of MSME by the Ministry of Finance, the difference between the manufacturing and service sectors has been eliminated, Investment Limits have been Revised, and a Turnover Criteria has been introduced. This amendment was announced by our Finance Minister, Mrs. Nirmala Sitharaman, on 13 May 2020. The following listed are considered as MSMEs under the MSMED Act, 2006:

Classification of Enterprises

The enterprise will be classified as micro, small, or medium enterprise according to the following criteria:

What is the criteria to classify MSMEs?

The classification as MSME is done on the basis of investment plans of the business no matter in service sector or the other. Here are the investment limits which distinguish MSMEs: –

These maximum limits of MSMEs somewhere kills the options to expend the business up to its original capacity. But in the plan of AATMANIRBHAR BHARAT ABHIYAN, the government has extended these investment limits and also removed the definition gap between the service sector enterprise and manufacturing sector enterprise. Now here are the revised classification limits in which the limit of Annual Turnover is also included by the government with investments as described below:

• A Micro Enterprise is the one wherein the investment in Plant and Machinery or Equipment does not exceed rupees 1 crore, and turnover does not exceed rupees 5 crore;
• A Small Enterprise is the one wherein the investment in plant and machinery or equipment does not exceed 10 crore rupees, and turnover does not exceed 50 crore rupees; and
• A Medium Enterprise is the one where the investment in plant and machinery or equipment does not exceed 50 crore rupees, and turnover does not exceed 250 crore rupees.

Benefits of MSME/Udyam Registration in Jaipur

Below are some of the benefits that can be enjoyed by the enterprises after getting MSME registration: –

• Get access to the government special tenders which are open for MSME industry only.
• Can avail a bank loans at cheaper interest rates.
• Benefits of tax rebates.
• Patent registration at lower cost.
• Preference for government licenses and certifications.
• Access to all state and central government schemes.Benefits of tax rebates.
• Patent registration at lower cost.
• Preference for government licenses and certifications.
• Access to all state and central government schemes.

Documents Requirement for MSME/Udyam Registration in Jaipur

The documents needed for obtaining online MSME Registration are as follows:

• PAN Card Details of the proprietor/ all the directors/all the partners.
• Aadhar Card Details of the proprietor/all the directors/all the partners.
• Proof of ownership of the place being used as a Registered Office such as the Allotment Letter/Lease Agreement/Possession Letter/Property Tax Receipt.
• If in case the place being used is a rented premise, then the Rent Agreement with the No-Objection Certificate (NOC) from the landlord together with the utility bill.
• Copy of Purchase Bill of every raw material purchased.
• Copy of Sale Bill for each end product.
• A Copy of Partnership Deed in the case of a Partnership Firm.
• Copy of Memorandum of Association (MOA) and Articles of Association (AOA) and Certificate of Incorporation (COI) in the case of Private Limited Company together with the Board’s Resolution passes authorizing the director to sign the application.
• Copy of the Industrial License as acquired under the Industrial Development and Regulation Act, 1951.
• An affidavit on Rs. 10/-Non-Judicial Stamp Paper duly attested by the Notary Officer declaring the Power Requirement and the Status of the Machinery Installed etc.
• Purchase Bill of the Machinery Installed.
• Bills relating to Purchasing and Installation of plant and machinery.
• Bank Account Statement.

Registration Process of MSME/Udyam Registration

Following steps can be followed for getting MSME Registration:

How to check Udyam Registration Status?

• Step 1: Visit:- https://udyamregistration.gov.in/PrintUdyamCertificate.aspx
• Step 2: Enter the Udyam Registration Number and registered phone number.
• Step 3: Chose the apt ‘OTP’ option.
• Step 4: Finally, tap on the Validate and Generate OTP.