Udyam MSME registration helps in availing Government schemes and subsidies.Udyam Registration is the new scheme for registration for micro, small, medium-sized businesses in India under the Micro, Small and Medium Enterprise Development Act, 2006 (MSMED).
The Government will subsidise the cost of ISO Certification and Consultant Expenditure – Up to 75% of the costs involved in getting ISO Certifications such as ISO 9000, ISO 14001 and HACCP and the consulting service charge.
Under the CREDIT GUARANTEE FUND TRUST FOR MICRO AND SMALL ENTERPRISES scheme,
the Government has introduced various initiatives for MSME/SSI that allow them to avail credit without
collateral.
As per MSME Act, 2006, dues towards MSME’s have to be cleared within 45 days.
The Government gives a subsidy of upto 50% for patent registration.
By making an application to the DIC (District Industries Centre), the MSME’s
can avail of lower electricity charges.
Under the RBI scheme for priority sector, funds are made available through the
banking channels for the development of MSME Sector.
Certain schemes from the banks qualify for a lesser rate of interest for
entities registered under the MSME Act.
Entities registered under Udyam can use the presumptive rate of taxation, which
can help reduce their operational burden by not having to maintain books for taxation purposes.
MSME’s can claim incentives by way of subsidies, tax exemption and technical support towards their export activities. Also, subsidies are provided for taking part in fairs and exhibitions in India and abroad.
Grants and subsidies are provided to enhance the plant and machinery and
develop the overall infrastructure of the MSME.
Under the Market Development Assistance Scheme, the Government follows a Price and Purchase Preference policy. More than 358 items are listed for exclusive purchases by Central Government from the MSME only.
Sector/Enterprise Type | Micro Enterprise | Small Enterprise | Medium Enterprise |
---|---|---|---|
Manufacturing & Services Sector | Investment less than Rs. 1 crore Turnover less than Rs. 5 crore | Investment less than Rs. 10 crore Turnover up to Rs. 50 crore | Investment less than Rs. 50 crore Turnover up to Rs. 250 crore |