July 16, 2020

Q1. What is MSME?

MSME stands for Micro, Small and Medium Enterprise.

Q2. What is the difference in Micro, Small and Medium Enterprise?

As per the latest classification applicable from 1^st July,2020, Enterprises engaged in the manufacture or production, processing or preservation of goods fulfilling the below mentioned conditions:

 

Type of enterprise	Limit for investment in plant & machinery or equipment	Limit for turnover
Micro	Less than Rs 1 crore	Less than Rs 5 crore
Small	Less than Rs 10 crore	Less than Rs 50 crore
Medium	Less than Rs 50 crore	Less than Rs 250 crore

 

Q3. Who can apply for MSME Registration?

Apart from micro, small and medium business entities, limited liability partnerships, private companies, public companies, one person companies & proprietorship firms involved in manufacturing or services or both can also apply for MSME registration.

 

Q4. What are the benefits of registration under MSME?

Following are the benefits of the registration under MSME:

1. Collateral free bank loans
2. Cheaper interest rates
3. Concessions on electricity tariff.
4. Subsidy in patent and trademark registration
5. Exclusive government tenders for MSME industries
6. Preference for approval of government license or certification
7. Reduced setup cost
8. MAT credit can be carried forward for 15 years (instead of 10 years)
9. Protection for unpaid amount from the buyer
10. Reimbursement of ISO certification charges

 

Q5. How can I register on MSME portal?

From 1^st July,2020, the entity is required to fill registration form on a new portal called ‘UDYAM’ portal. https://udyamregistration.gov.in/

 

Q6.  What are the documents required for registration on UDYAM portal?

Aadhaar number is mandatory for registration.

• In case of proprietorship, Aadhaar of proprietor is required.
• In case of partnership firm, Aadhaar of managing partner is required
• In case of HUF, Aadhaar of Karta is required
• In case of company, LLP, cooperative society or trust, the GSTIN and PAN of authorised signatory along with its Aadhar number

Q7. Do I need to register separately for my different branches?

No, an enterprise can only have a single udyam registration, however, you can add multiple branches to single registration.

Q8. Does existing MSME registration holders need to register again?

Yes, all existing MSME registered prior to 30^th June, 2020 shall be valid only till 31^st March, 2021. They need to register again on the udyam portal.