SSI/MSME Registration

As a small enterprise, you can have access to priority sector lending, tax exemptions & capital investment and power tariff subsidies.




    How Does Online Udyog Aadhaar Registration Work?

    Under the Udyog Aadhaar, only one page needs to be filled for registration with Aadhaar Card
    acting as the sole legal document.

    Step 1

    We do a thorough check of the files you send in

    Step 2

    We will appoint an affiliate to process your
    application

    Step 3

    A certificate will be issued within 15 days of the
    application

    Online Udyog Aadhaar (SSI/ MSME) Registration - An Overview

    An SSI also called Small Scale Industry Registration is a registration from the Ministry of Micro, Small and Medium Enterprises. When a business registers as SSI it becomes eligible to avail government schemes and subsidies that are exclusive for small businesses.

    Buiznest offers expert service for MSME registration:

    • Free consultation
    • Data verification: A thorough check of all the files submitted
    • Vendor Connect: A dedicated affiliate who processes the SSI online application
    • Receipt of License: The certificate will be issued within 15 days of application

    MSME registration can be done by enterprises of sizes:

    • Micro
    • Small
    • Medium

    Under the MSMED Act, these small businesses get varying incentives such as:

    • Priority sector lending
    • Tax exemptionsd
    • Capital investment

    Registering for MSME is an entire online process but seeking the help of professionals makes it more easy. Buiznest assists you with the online application and gets the required approval from the department.

    What is SSI/MSME Registration?

    • Small scale industries play a vital role in the socio-economic development of India. To promote and encourage these small-scale industries, the government of the country created the MSMED Act. The Act was created to maintain a list of all the industries registered as MSME or SSI. The record aided in providing support and incentives to these firms. Furthermore, SSI helped in employment of people at little capital investments. All these entities should possess certificate of MSME registration, which should be registered with the Central Government’s MSME department under the Act of MSME Development- 2006The MSMED Act includes:
      • Small Scale Industries (SSI)
      • Micro, Small and Medium Enterprises (MSME)
      • Different sectors have different limits for registering under the act.
      • A manufacturing enterprise with plants and machinery that required an investment of below 10 Crores can be an MSME.
      • For service enterprises, the amount caps at five crores.
      • If the company exceeds the upper limit, at any point in the future, it is not considered as an MSME.

      To avail the numerous benefits from the Government of India, an SSI registration certificate is needed. It is an optional registration but the companies that get registered are eligible for:

      • Lesser interest rates
      • Excise exemption scheme
      • Subsidies in tax, capital investment and power tariff
      • Other support

    New Udyog Aadhaar replaces SSI / MSME Registration

    In order to make the process of registering a small or medium level enterprise even more straightforward, a new act called the Udyog Aadhaar was created in 2015. Udyog Aadhaar completely replaces MSME and is conducted entirely online. Under the Udyog Aadhaar, only one page needs to be filled for registration with Aadhaar Card acting as the sole legal document.

    Following are the MSME schemes offered by the government Udyog Aadhaar

    Udyog Aadhaar Memorandum

    Udyog Aadhaar Memorandum (UAM) was introduced under the MSMED Act, 2006 to promote the ease of doing business for MSMEs. A simple one-page form is filed and the registration is user-friendly and easy. No documentation is required, except the 12-digit Aadhaar card number. Businesses also have a provision to file more than one Udyog Aadhaar with the same Aadhaar number. UAM can be filed on a self-declaration basis.

    Zero Defect Zero Effect

    ZED scheme encourages manufacturers to manufacture goods for export that are of highest quality. If the standards are met and goods are exported, the exporters will be eligible for rebates and concessions. If they are not exporterd, the goods will be rejected and returned to India.

    Quality Management Standards and Quality Technology Tools

    This scheme is aimed at helping micro, small and medium entreprises produce quality products at competitive prices by adopting the tools. Through the tools, businesses will be able to optimize the resource, improve quality, reduce rejection and rework. Under this scheme, businesses will be sensitized about the tools through activities like workshops, campaigns and seminars.

    A System For Monitoring The Grievances

    Under this scheme, the complaints and issues of the businesses will be addressed. The business owners can also track the status of their complaint and open it again it they are dissatisfied with the outcomes.

    Why Udyog Aadhaar registration?

    Benefits

    In the banking sector, if you need to avail the benefits of the MSMED Act of 2006, you will have to opt for MSME registration.

    When you register your firm with Udyog Aadhaar , the business can leverage many schemes initiated by State and Central Government. In addition to this, for availing the MSMED Act 2006 benefits in the banking sector, MSME registration becomes mandatory.

    • Refrain from asking for security deposits
    • Concession in the electricity bills
    • Increased chances of winning government tenders
    • Reduction in fee for filing patents and trademark registration to get protection under the rights of intellectual properties.
    • Easy and cheaper bank loans
    • Reservation benefits
    • Stamp duty and registration charges are waived off
    • Reimbursement under the bar code registration
    • Industrial promotion subsidy
    • Reduction in the rate of the interest by major banks

    Type of MSME Registrations

    Provisional MSME Registration

    The first stage of MSME registration is provisional which is given during the period before the establishment of the entity or the pre-investment period of the firm. At this point, 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 obtain term loans, and working capital from financial institutions and banks under priority sector lending.

    Permanent MSME Registration

    The second type of MSME registration is permanent. It is given to industrial units that are already functioning. Though the Act is not mandatory, it is immensely beneficial for firms to have the support of government.

    Guidelines for online SSI / MSME Registration

    Apply For Provisional Registration

    A PRC ( Provisional Registration Certificate) is allotted to new enterprises without any field enquiry. It is purely an application-based form. Therefore, it has to applied in the precise prescribed form before operations begin in the unit. Once the application is submitted, the provisional registration will be provided without a physical inspection of the unit. The procedure is quick so that newly established firms can avail multiple benefits, quick loans and other necessary approvals.

    Starting The Business

    The provisional certificate is valid for a period of five years and the enterprise has to become operational within it. If the business fails to commence work under five years, a new application must be submitted.

    Applying For Permanent SSI Registration

    If the entrepreneur successfully begins operations within five years, they can apply for a permanent certification. The registration is done at the Ministry of MSMEs. The permanent SSI registration is granted only if specific conditions are met and mandatory documents are submitted.

    • The unit has obtained statutory and administrative clearances as required.
    • The unit does not violate any regulation or restriction.
    • The value of plant and machinery in the unit does not exceed the prescribed limits.
    • There should be proof the enterprise is not owned, subsidiary of or controlled by another industry.

    At Buiznest, we are committed to helping you overcome every any obstacle that may arise in MSME registration for your enterprise.

    List of documents required for SSI / MSME Registration

    • Business address proof
    • Copies of sale bill and purchase bill.
    • Partnership Deed/ MoA and AoA.
    • Copy of licenses and bills of machinery purchased.
    • For firms that are listed in Schedule -III of the Industrial Licensing Exemption Notification, no Industrial license is needed. Every other enterprise must obtain it for the PRC (Provisional Registration Certificate) application.
    • For the registration and document process, all statutory and administrative clearances need to be obtained such an NoC from pollution board to prove that no restrictions are being violated.

    Opening of the Current Account

    Current account or Demand Deposit Account is used by businesses for a higher number of transactions, including deposits, withdrawals, and contra transactions. It helps in the smooth functioning of a business.

    Udyog Aadhaar eligibility – Who should obtain SSI/MSME Registration?

    The eligibility for the scheme of MSME or SSI registration is dependent on the scale of business of the enterprise. Udyog Aadhaar registration is applicable for Proprietorship, Hindu Undivided Family(HUF), one-person company(OPC), Partnership Firm, public limited company, private limited company, production company, co-operative societies, limited liability partnership(LLP) or any association of persons or any other undertaking.

    Micro Enterprises:

    A manufacturing enterprise should have investment of less than Rs. 25 lakhs in plant and machinery. A service enterprise should have less than Rs. 10 lakhs invested. These micro enterprises are the smallest entities.

    Small Enterprises:

    For manufacturing enterprises, the investment has to be between Rs. 25 lakhs and Rs. 5 crores in plant and machinery. For service enterprises, the range is between Rs. 10 lakhs and Rs. 2 crores.

    Medium Enterprises:

    If it is a manufacturing enterprise, the investment in plant and machinery has to be between Rs. 5 crore and Rs. 10 crores. If it is a service enterprise, the range is from Rs. 2 crores to Rs. 5 crores.

    How we can help with MSME Registration? Why Buiznest

    In 10 – 20 days time Buiznest obtains your MSME registration (without factoring in Government approval time).

    2 Working Days

    Following are the documents to be submitted with us:

    • PAN cards
    • Rental agreement for the office address (if 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 agreement

    2 Working Days

    The submitted documents are filed along with the application. In some states, additional paperwork might be needed such as sale bills of machinery and municipal clearance.

    15 Working Days

    If production has not begun, a provisional certificate is issued for 5 years. It becomes permanent when the unit is functioning.

    FAQs on SSI/MSME Registration

    For how long is a Provisional Registration Certificate (PRC) valid?
    The PRC expires at the end of five years, at which point you may re-apply if the unit is not yet operational, or if the unit exceeds investment limits set by the MSMED Act. Once you commence operations, you can apply for the Permanent License.
    What factors are not counted as investment?
    For a registration, total plant and machinery cost should be up to Rs. 25 crore for manufacturing units and Rs. 10 crore for service units. While calculating this number, the value of land and building will not be counted toward the total investment. Also, the original cost of the equipment and plant and machinery is taken into account. Depreciation cannot be factored in.
    How does SSI/MSME help me get a loan from a bank?
    All banks and other financial institutions recognise MSMEs and have created special schemes for them. This usually includes priority sector lending, which means that the likelihood of your business being sanctioned a loan is high. Bank loan interest rates will also be lower. There may also be preferential treatment in case of delay in repayment.
    What benefits are given by state and central government?
    Most states offer those units registered under the MSMED Act a subsidy on power, taxes, and entry to state-run industrial estates. In particular, there is a sales tax exemption in most states and purchase preferences on goods produced. Depending on your business, you may also enjoy an excise exemption scheme and exemption from certain direct taxes in the initial years of your business.
    What is MSME registration and how to get it?
    While in the last century, India’s growth story was powered by agricultural improvisation and the creation of service industries, in this century, it is largely small innovative business improvisations in the technology, manufacturing and service sector that are fuelling economic growth and investments. To further incentivize business owners from taking the risk to constitute themselves into an organized structure – whether micro, small or medium, the government has prescribed what is known as the MSME registration. If you’re an existing business owner or have a potential idea that can be developed, there are the distinct advantages that an MSME registration can confer.
    What are the advantages of MSME registrations?
    Advantages of MSME Registrations There are several benefits in registering your enterprise as an MSME. Some advantages cover financial as well as non-financials relating to business and other pioneering advancements. So let us see the different benefits of MSME registrations in brief. Get Legal Assistance Enter your Email Id* Mobile Number* Preferential Lending: Be it the proprietor of a leading enterprise or the owner of a packaging water business, having women, bank balance and loan allowance are some of the major things any business will need for both long term & short term financing. The good news is, The RBI or the Reserve Bank of India have allocated a particular amount of cash reserve that has to be given to MSME businesses. Therefore, generating the necessary documents authorises one to make use of this privilege on a preferential basis with fewer difficulties. Negligible Financing Costs And Simple Access To More Credit: Without insurance security (any property/money given as a security against an advance), numerous entrepreneurs may find it very difficult to verify an advance to begin with. Nevertheless, with a MSME Registration, all banks are explicitly trained to offer advances at loan costs lower than the usual standard rates and therefore one might probably be able to profit from this as many financial organizations offer MSME companies loans for their financial needs. Invulnerability To Income Tax: There are a few advantages that can spare lakhs of sum that might be assessable to charge without this endorsement. The advantage of a hypothetical premise of tax collection is accessible to endeavours, which assuages one from keeping up itemized books of records and undertaking review techniques. Credit Link Guarantee Scheme : The Ministry of Micro, Small and Medium Enterprises and the Small Industries Development Bank of India (SIDBI) have set up a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) explicitly to actualize Credit Guarantee Fund Scheme for miniaturized scale and little ventures. This plan permits insurance free credits of up to 50 lakhs for individual MSMEs. Business Help From The Indian Government And Export Publicity: The Government of India composes a few trade programs, create fairs, shows, and exchange related occasions universally. Being ordered as a smaller scale, little or medium undertaking offers access to these stages for universal collaboration on exchange related angles with various nations and encourages new business associations. The administration additionally boosts fare of products and ventures by MSMEs by method for appropriations, charge exception, and specialized help. Business Capital And Different Allowances For Framework Progressions: Since MSMEs is a segment creating work and giving enterprising endeavors a lift, the administration additionally distinguishes preparing areas for MSME and gives capital gifts for ad lib of the framework and backing for pioneering improvement. Repayment Of ISO Certification: To advance the norms and accreditations gotten by MSMEs in an offer to upgrade their execution crosswise over areas, all enrolled miniaturized scale and little ventures can benefit exclusion of all costs brought about for getting ISO 9000, ISO 14001 and HACCP affirmations.
    What is the eligibility criteria for MSME/SSI registrations in India?
    Micro Enterprises: micro manufacturing endeavors have venture of not more than Rs. 25 lakh in plant and machinery, while micro service endeavors have investment of less than Rs. 10 lakh put into resources. Small Enterprises: Small manufacturing undertakings may have between Rs. 25 lakh and Rs. 5 crore put into plant and apparatus, while small service endeavors may have between Rs. 10 lakh to Rs. 2 crore put into hardware/equipments. Medium Enterprises: Medium manufacturing ventures may have investment between Rs. 5 crore and Rs. 10 crore into plant and hardware, while medium service undertakings may have between Rs. 2 crore and Rs. 5 crore put resources into hardware/equipments. For manufacturing ventures, be that as it may, land and building can't be tallied toward the complete investment. Additionally, the original cost of the hardware and plant and machinery is considered; depreciation can't be figured in. Any business can apply for this registration, be it a partnership, company or sole proprietorship.
    What are the facts involved in the MSME/SSI registration?
    Advantages of SSI/MSME registration The advantages that an Udhyog Aadhaar registration offers are: Low-Priced Bank Loans The interest rates on the loan offered to MSMEs is 1-1.5% lower compared to the other typical business loan interest. Easy Access To Credit Mudhra Loan scheme is also introduced by the Indian government which provides loans to SSI/MSMEs without sureties. Approvals From Government Organizations The businesses which are registered under the SSI/MSMEs are given the first preference in terms of government license and certification. Tax Refunds SSI/MSME registered businesses can take the benefit of numerous income taxes and capital gains tax subsidies from the government. Cheaper Infrastructure Charges are less for an SSI/MSME registered company for the amenities such as electricity and VAT exemptions. And also, other business amenities such as patents are also cheaper for SSI/MSMEs. Access To Tenders There are different government tenders which are particularly open only to SSI/MSMEs to promote the small business contribution in India. Documents required for MSME/SSI registration in India A copy of the applicant’s Aadhaar card Business PAN card Proof of business address - a copy of utility bill or rent deed Category of the applicant - whether General, OBC, SC/ST Business owner’s name Company name Details of the business bank account Operations of the organization Date of establishment of the company Employee count Availing the help of a professional service provider for registering the MSME proves beneficial with respect to all the legal requirements.
    What is Udyog Aadhaar Memorandum (UAM)?
    The Micro Small and Medium Enterprises (MSME) sector has been crucial to India’s development over the past five decades. Other than providing large employment opportunities at lower capital cost, MSMEs also aid in the industrialization of rural and backward areas, thereby reducing the regional imbalances, assuring a more effective equitable distribution of national income and wealth. Although the Govt of India has many initiatives for the MSMEs and SSIs, the respective state governments are responsible for the promotion and development of small businesses. The Micro, Small and Medium Enterprises Development (MSMED) Act was notified in 2006 to provide subsidies and exemptions to MSMEs. According to the Act, all enterprises have to register but most enterprises are not because of the amount of paperwork involved. The ministry, therefore, in 2015, decided to put in place the Udyog Aadhaar, which ensures easy registration and wider coverage of MSMEs to avail of the benefits under various central and state-run schemes.

    Why Buiznest

    60 Established Vendors
    Buiznest has successfully completed 600+ registrations in the past year alone. We have partnered with some of the top experts in business across India to get your registration across to you on time.
    9.1 Customer Score
    We make your interaction with the government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.
    200+ Strong Team
    Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we’ll try to ensure that your doubts are cleared before they even arise.

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