An Overview of Online Udyog Aadhaar (SSI/ MSME) Registration
The Ministry of Micro, Small and Medium Enterprises issues an SSI, also known as a Small Scale Industry Registration. When a company registers as an SSI, it becomes eligible for government programmes and incentives designed specifically for small enterprises.
Vakilsearch provides MSME Registration assistance:
- Consultation is provided without charge.
- Verification of data: A careful examination of all files provided
- Connect with Vendors: The SSI online application is processed by a designated affiliate.
- Licensing Receipt: Within 15 days of receiving the application, the certificate will be issued.
Small businesses of all sizes can register as MSMEs:
- Micro
- Small
- Medium
These small enterprises are eligible for a variety of incentives under the MSMED Act, including:
- Priority financing to specific industries
- Exemptions from taxes
- Investment in capital
MSME registration is an entirely online process, however hiring professional assistance makes it much easier. Vakilsearch supports you with the online application and obtains the department’s permission.
What is the difference between SSI and MSME registration?
Small-scale industries are critical to India’s socioeconomic growth. The MSMED Act was designed by the government of the country to promote and encourage these small-scale industries. The Act was passed in order to maintain track of all MSME and SSI industries. The track record helps in the provision of assistance and incentives to these businesses. Furthermore, SSI contributed to the hiring of those with low capital. All of these organisations must have an MSME registration certificate, which must be registered with the MSME department of the Central Government under the MSME Development Act of 2006.
The MSMED Act has the following provisions:
- Small-scale businesses
- Micro, Small, and Medium-Sized Businesses
- The act has varying registration restrictions for different sectors.
- An MSME is a manufacturing firm that has invested less than ten crores in plants and machinery.
- The sum is capped at five crores for service businesses.
- If a company’s revenue exceeds the upper limit at any point in the future, it ceases to be an MSME.
An SSI registration certificate is required to access the Government of India’s numerous benefits. It is an optional registration, but those who do so are eligible for the following benefits:
- Interest rates are lower.
- Scheme of excise exemption
- Subsidies in the form of tax credits, capital investments, and power tariffs
- Other sources of assistance
MSME Registration is being phased out in favour of the new Udyog Aadhaar
A new law known as the Udyog Aadhaar was passed in 2015 to ease the process of registering a small or medium-sized business. Udyog Aadhaar, which is conducted fully online, has completely replaced MSME. Registration under Udyog Aadhaar requires only one page, with the Aadhaar Card functioning as the only legal document.
The government’s MSME schemes are included below Udyog Aadhaar.
The MSMED Act of 2006 created the Udyog Aadhaar Memorandum (UAM) to help MSMEs do business more easily. The registration process is easy and straightforward, with a one-page form being submitted. Except for the 12-digit Aadhaar card number, no further paperwork is required. Businesses can also use the same Udyog Aadhaar number to file multiple Udyog Aadhaars. Self-declaration is an option for filing UAM.
The ZED programme promotes producers to produce high-quality goods for export. Exporters will be entitled for refunds and subsidies if the standards are reached and items are shipped. The products will be refused and returned to India if they are not exported.
By implementing the tools, this programme aims to assist micro, small, and medium businesses in producing high-quality products at affordable pricing. Using the technology, businesses will be able to maximize resource use, improve quality, and reduce rejection and rework. Under this programme, businesses will be informed about the tools through activities such as workshops, campaigns, and seminars.
The grievances and issues of businesses will be addressed under this system. Owners of businesses can also track the progress of their complaints and reopen them if they are dissatisfied with the outcome.
Memorandum on Udyog Aadhaar
The validity of Entrepreneurs Memorandum (EM) Part-II and Udyog Aadhaar Memorandums (UAMs) has been extended by the Ministry of Micro, Small and Medium Enterprises (MSME) from March 31 to December 31, 2021.
The goal is to make it easier for holders of EM Part-II and UAMs to take advantage of provisions under different existing programmes and incentives, such as MSME’s Priority Sector Lending advantages.
The official statement stated, “Considering the hardships faced by MSMEs during the current Covid-19 situation, and the representations received from various MSME associations, financial institutions, and Government departments dealing with the interest of the MSME Sector, the said amendment has been carried out.”
Existing EM Part-II and UAM holders should be able to migrate to the new Udyam Registration system, which went live on July 1, 2020, and take advantage of government schemes, paving the way for MSMEs to strengthen and recover faster, boost their economic activity, and create jobs, according to the report.
Interested businesses can register for free and without submitting any paperwork. For registration on the Udyam portal, only your PAN and Aadhaar are necessary. As of June 16, 2021, this site had assisted the registration and classification of 33,16,210 businesses.
Nitin Gadkari, the Minister for MSME, recently announced the simplification of the registration procedure for Micro, Small and Medium Enterprises. He stated that only PAN and Aadhaar will be necessary for MSMEs to be registered.
Suggested Read: Print Udyog Aadhaar Certificate