Micro, Small, and Medium Enterprises (MSME) is an acronym for Micro, Small, and Medium Enterprises. They are the backbone of the Indian economy and a driving force behind our country’s growth and development. As a result of the MSMED Act, the government has implemented a number of initiatives, subsidies, and incentives to support MSMEs. Udyam registration is essential to receive these perks. Many business owners, however, are puzzled about the differences between Udyog Aadhar registration and MSME registration. The differences between the two will be discussed in this blog.
What is the Aadhar number for Udyog Aadhar?
Most small business owners desire to know what Udyog Aadhar is before launching a company. If you’re looking for an answer to the same question, you’ve come to the correct spot. It’s nothing more than a government document. It’s in the form of a certificate with a unique number on it. SMEs, for example, are validated by Udyog Aadhar.
The major goal of establishing this facility was to allow small business owners to reap the most benefits from government programs. To be eligible for benefits, the business owner, proprietor, or director must furnish their 12-digit Aadhar number. In addition, the company should have an MSME registration certificate.
Why should you register for a Udyog Aadhar?
All types of businesses, including Hindu Undivided Families, One Person Companies, Proprietorships, Partnership Firms, Limited Companies, Limited Liability Companies, Private Limited Companies, Production Companies, Co-operative Societies, and any other association, are eligible to register for Udyog Aadhar. However, as a business owner, you should be aware that in order to qualify as a micro, small, or medium organization, you must meet a number of conditions.
Make sure your company qualifies as a micro, small, or medium organization pursuant to the MSMED Act’s eligibility rules before registering for a Udyog Aadhar.
Udyog Aadhar Registration Benefits:
Once you register for Udyog Aadhar, you will be eligible for a variety of benefits.The best aspect about registration is that it is a really simple and painless process. It also doesn’t require a great deal of paperwork.
The following are some of the benefits of getting a Udyog Aadhar:
- Exemption from excise
- Irregular taxes are exempted.
- Credit Guarantee Scheme
- The costs of filing trademarks and patents will be lower.
- Following registration, your company will be eligible for a variety of government programs.
- Electricity bills will be reduced.
What is MSME (Small and Medium-Sized Enterprise) Registration?
MSME registration is for businesses that fall into the MSME classification. The MSME sector is often recognized as India’s economic backbone. They are the engine that propels economic growth and promotes equity. MSMEs in India often provide excellent employment prospects and are hence critical to the Indian economy. They also play an important role in India’s overall output and exports.
As a result, the MSMED Act allows several programs, incentives, and subsidies for them in order to support their development. You must possess a proprietorship firm, LLP, partnership firm, Private Limited Company, or Public Limited Company to be eligible for MSME registration.
Definition of MSMEs:
The following is the MSME definition for enterprises that are involved in the manufacture, production, processing, or preservation of items:
- Micro Enterprises are businesses with a plant and machinery investment of less than Rs. 25 lakh.
- Small business, a company with a plant and machinery investment of more than Rs. 25 lakh but less than Rs. 5 crores.
- A medium enterprise is one that invests more than Rs. 5 crores in plant and machinery but less than Rs. 10 crores.
The following is the definition for businesses in the service sector:
- A microenterprise is a company with a capital investment of less than Rs. 10 lakh in equipment.
- A small business is one that spends more than Rs. 10 lakh on equipment but less than Rs. 2 crores overall.
- A business with an equipment investment of more than Rs. 2 crores but less than Rs. 5 crores is classified as a medium enterprise.
Suggested Read- Udyam Registration Portal
What’s the Difference Between Udyog Aadhar Registration and MSME Registration?
Although MSME and Udyog Aadhar registrations are similar, they are not identical. Udyog Aadhar is just a quick and easy way to register for Udyam online. A small firm can receive a 12-digit Udyog Aadhar number through an online method called Udyog Aadhar Registration. After that, submit an application for MSME registration. As a result, they might be categorized as separate entities. On the other side, Udyog Aadhar registration is a new technique for acquiring MSME registration.