The Central government had approved the modalities and road map for micro, small and medium enterprises (MSMEs) in June last year, after receiving the recommendations of the advisory committee. In order to confirm the new definition of MSMEs and ease of doing business, the earlier EM-I/II and Udyog Aadhaar Memorandum (UAM) registration process was replaced with a new registration portal under Enterprises Registration in July last year. The move behind introducing the new system was to simplify the procedural format that business owners had to go through to register their business under MSME norms.
The registration process has been facilitated through one page to fill the online form on the official website of enterprise registration – https://udyamregistration.gov.in. No documents are required in this process, one or more business enterprises can be easily registered and MSME registration is free. After registration, an enterprise will be given a Permanent Identification Number which will be known as ‘Enterprise Registration Number’. On completion of the registration process an e-certificate i.e. Enterprise Registration Certificate will be issued.
By registering in Udyog Aadhaar, businesses can enjoy many benefits/benefits. Here are some of them:
1. All banks and financial institutions give priority to MSMEs, including priority sector lending at low interest rates. The Government of India had also launched the Credit Guarantee Fund Scheme (CGS) for MSMEs to provide collateral-free loans to the sector.
2. Firms/enterprises registered under the MSME Act are eligible to avail a benefit of 1 per cent on overdrafts as part of the Credit Guarantee Trust Fund Scheme. However, it may vary from bank to bank.
3. Tax Benefits: Depending on the size of your enterprise, businesses may get benefits like excise duty exemption scheme or you may get direct tax exemption in the initial years.
4. State Government Benefits: Enterprises can also get many benefits from their respective state governments, such as subsidy on electricity, sales tax and entry into businesses linked to Udyog Aadhaar.
5. Apart from the benefits of the State Government, firms can also avail benefits from the Central Government. These include the benefits of various schemes like Credit Guarantee Scheme for MSME Sector, Women Entrepreneurs, Quality Management Standards and Quality Technology Tools, Atmanirbhar Bharat, Zero Effect Zero Defect, Hip Incubation.
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