Registration of MSMEs is not mandatory but provides benefits. After registering via the Udhyor Aadhaar Memorandum, businesses can access support schemes. Registration allows MSMEs to receive benefits like easier bank loan approval, lower interest rates, tax exemptions, and reservations from central and state governments. Benefits include subsidies, specialized industrial estates, and lower power tariffs. Registered MSMEs can then take advantage of various schemes and support from government ministries and bodies.
2. Registration of MSMEs
MSME registration is not statutory, but it is beneficial as it provides a range of benefits and other
support to the enterprises that are registered.
After registrations, any enterprise becomes qualified to reap the benefits offered under MSMES Act
So, if you want to get your business registered as MSME, you need to file your business with
Udhyor Aadhaar Memorandum (UAM) once your business has started operations, so that
using the UAM number you can access other services.
Earlier it was a two way process:
• EM – I = Registration before setup of unit
• EM – II = Registration after commencement of operations
But after amendments, the EM-I is abolished and EM-II has been replaced by UAM
3. Benefits from Central Government
• Easy sanction of bank loans
• Lower rates of interest
• Excise exemption scheme
• Exempt under Direct tax Laws and statutory support
• Reservations
Benefits from State Government
• Development of specialized industrial estate
• Tax subsidies
• Power tariff subsidies
• Capital investment subsidies and other support
Now, once you are registered, you can reap the benefits offered by different schemes by MSME ministries and other
government bodies