On July 1, 2020, the Ministry of Micro, Small & Medium Enterprises launched a new registration process for micro, small, and medium enterprises (MSMEs) called Udyam Registration. This process replaces the earlier MSME registration process and comes with a revised definition of MSMEs. Under this process, an enterprise is referred to as Udyam, and the registration process is called Udyam Registration.
The business will be given a recognition certificate and a permanent registration number after completing the Udyam Registration. The goal of this new registration procedure is to make it easier for small and medium-sized businesses to conduct business.
Benefits
- Banks provide loans without the need for collateral to borrowers.
- Accessing licenses, approvals, and registrations are made easier.
- International trade is given special consideration.
- Concessions on various bills, including electricity bills, are offered by the government.
- Credit Linked Capital Subsidy Scheme eligibility is granted to organizations registered with Udyam.
- ISO certification fees can be reimbursed.
- Protection is provided against late payments for services provided.
- Lower interest rates and subsidies are available for bank loans.
- Special reservation policies are in place for the production/manufacturing sectors.
- Direct tax laws offer exemptions.
- NSIC performance fees and credit rating subsidies are provided.
- Subsidies are available for barcode registration.
- Patent registration subsidies are provided
Revised MSME definition – The Atamnirbhar Bharat package
The definition of MSME (Micro, Small and Medium Enterprises) now uses composite criteria based on both investment and turnover, and the limit for these criteria has been increased. Additionally, the differentiation between the service and manufacturing sectors is no longer applicable.
Composite Criteria: Investment in Plant / Machinery and Turnover
Type | Investment | Turnover |
Micro enterprises | Less than Rs.1 Crore | Less than Rs.5 Crore |
Small enterprises | Less than Rs.10 Crore | Less than Rs.50 Crore |
Medium enterprises | Less than Rs.20 Crore | Less than Rs.100 Crore |