SSI / MSME Registration

SSI (Small Scale Industries) / MSME (Micro, Small, Medium, Enterprise)

Businesses falling within specific investment limits in their service or manufacturing sectors qualify as Micro, Small, and Medium Enterprises (MSME/SSI). Those aiming to initiate an MSME/SSI enterprise must file Form EM Part-I, affirming their commitment to providing services or manufacturing goods. This crucial form is mandatory and needs to be submitted before commencing business operations.

If the entity engages in manufacturing or service rendering, they must submit the EM Part-II file as the subsequent step. Failure to file EM Part-II within two years after EM Part-I could result in the entity becoming invalid.

Business Field	Business Mode	Invesment Limitation
Manufacturing	Micro Enterprise	25 Lakhs
Manufacturing	Small Enterprise	5 crores
Manufacturing	Medium Enterprise	10 crores
Service	Micro Enterprise	10 Lakhs
Service	Small Enterprise	2 Crore
Service	Medium Enterprise	5 Crore

Changes in EM Part - II of MSME / SSI:

If there's a change in capital investment, notify the District Industries Centre within three months by submitting a note similar to EM Part-II. This update is crucial, irrespective of prior EM Part-II registration.

Similarly, for any alterations in services, products, or work expansion, provide written notice to the District Industries Centre within three months of the changes, regardless of the previously filed Entrepreneurs Memorandum.

Mandatory clearance of Pollution Control Board necessary for the following entities comes under register as MSME / SSI:

Animal and vegetable Plantations and Processing used in tanneries, sago and starch processing, fertilizer production, distilleries, paper and pulp manufacturing, textile processing, synthetic fiber units, chemical industries, dyeing and bleaching, aromatic chemical production, asbestos industries, pesticide and insecticide manufacturing, solvent factories, petroleum refineries, petrochemical industries, refractories, heat treatment facilities, thermal power stations, drug and pharmaceutical companies, cement production, foundries, electroplating services, and paints and varnishes manufacturing.

SUBSIDY FOR SSI / MSME:

Manufacturing sectors registered under MSME can receive location-based capital subsidies depending on their investment in a specific business sector. However, certain entities face restrictions or subsidy cancellations irrespective of their investment or location.

The Sector Activity Which Not Eligible for MSME / SSI:

Entities involved in certain activities considered harmful or impactful include aluminium smelting, audio cassette recording, dye processing (such as azo/reactive dyes), manufacturing of tobacco-based products, and handling substances like cadmium cyanide, calcium carbide, caustic soda, cement, and cyanide. This also encompasses various other operations like clock and watch repair, coffee roasting, distilleries, fertilizer production, firecrackers, hotels, mining, textile manufacturing, and activities involving the use of ozone-depleting substances, iron and steel smelting, knitting, mining, nylon and polyester fiber production, photo copying, photo studios, popcorn production, handling substances like potassium cyanide, chloride, and gold cyanide, poultry farming, power laundries, rayon fiber production, repacking drugs or chemicals without any modification, sawmills, slaughterhouses, spinning, sugar production, textiles, and units utilizing molasses or spirits for making potable alcohol are among the identified activities subject to specific considerations or regulations.

Any person having an intention to establish a micro, small or medium enterprise may file Udyam registration

Post-registration on the Udyam Registration portal, entities receive a permanent Udyam Registration Number.
An "Udyam Registration Certificate" is issued upon completion of the registration process, where Aadhar serves as the foundational document.
For proprietorships, the proprietor's Aadhar is necessary; for partnerships, the managing partner's Aadhar is required.
In cases of private limited, one-person companies, or public limited entities, the Aadhar of the authorized signatory, along with a copy of GST certificate and PAN, is mandatory.
Registering multiple Udyam registrations for a single enterprise is prohibited.
Any falsified information provided during registration, if later found incorrect, may face repercussions under Section 27 of the act.

Benefits:

Loans without collateral from banks
Qualification for industrial promotion subsidies
Security against late payments
Discounts on electricity bills
Tax exemption privileges
Excise duty exemption program
Generous 50% subsidy for patent registration
1% interest rate exemption on overdrafts

How to calculate investment in plant and machinery under Udyam registration?

The assessment of an enterprise's investment in plant and machinery will directly correlate with the previous years' Income Tax Returns filed..
For newly established enterprises that haven't filed income tax previously, the investment can be self-declared by the promoter until the 31st of March in the financial year following the entity's first Income Tax return filing.
The term "plant and machinery or equipment" aligns with its definition under the Income Tax Rules of the Income Tax Act, 1961, covering all assets excluding land, buildings, furniture, and fittings.
The purchase value of plant and machinery or equipment, whether new or second-hand, as indicated on the invoice, will be considered, excluding the GST based on self-disclosure.

How to calculate Turnover of an Enterprises under Udyam registration?

When calculating the turnover of any enterprise (micro, small, or medium), the turnover won't include the exports of goods or services.
The turnover and export turnover information for an enterprise will be connected to the Income Tax, CGST Act, and GST.
For enterprises without PAN, turnover figures will be accepted based on self-declaration until March 31, 2021. Afterward, having PAN and GSTIN becomes mandatory.

Re-registration Of Existing MSME

MSME/SSI registered under Udyog Aadhar before June 30th, 2020, will remain valid until March 31st, 2021. From July 1st, 2020, these entities can register under the Udyam registration portal. Enterprises registered before June 30th, 2020, will be reclassified under this new notification. As per the new regulation, all MSMEs registered under Udyog Aadhar or EM Part I or Part II must register under Udyam registration by March 31st, 2021.

Below are the documents required

Type of Organisation
Mobile Number
E-Mail
Copy of GST Certificate (if applicable)
Premises Address
Bank Account Information (Account Number and IFSC Code)
Date of Commencement of Business
Manufacturer or Service Provider Status
Total Investment in Plant & Machinery or Equipment
Number of Employees
Aadhar Copy of Proprietor / Partner / Director
PAN Card Copy of Proprietor / Firm / Company Applicant's
Social Category (General/OBC/SC/ST)

FAQ'S

The MSME registration certificate is typically issued within 1-2 working days upon successful application submission and verification.

Any individual or entity involved in manufacturing or providing services can apply for MSME registration to avail benefits and support.

Yes, Aadhaar number is not mandatory but highly recommended for MSME registration, aiding in faster processing and availing various government benefits.

Udyam registration is an online process in India for classifying and registering micro, small, and medium enterprises (MSMEs) to avail government benefits, subsidies, and support.Udyam Registration launched by the Ministry of Micro, Small and Medium Enterprises on July 1, 2020.

Yes, PAN and GSTIN are essential for Udyam registration. However, provisional Udyam Registration can be done without these, but updating is necessary for final registration.

No, only one Udyam registration is allowed per PAN. Multiple registrations on the same PAN are not permitted under the Udyam registration system.

An enterprise engaged in the production or manufacture of goods relating to any industry specified in the first schedule of the Industry (Development and Regulation) Act, 1951, (IDR Act, 1951), is called: (a) Micro Enterprise, where investment in plant and machinery does not exceed Rs. 25 lakhs. Have; (B) a small enterprise with an investment of over Rs. 5 lakhs in plant and machinery, but not more than Rs. 5 crore; (C) A medium enterprise, where plant and machinery cost Rs. crore, but not more than Rs. 10 crore. An enterprise engaged in providing or providing services is called: (a) a micro-enterprise, where the investment in equipment does not exceed Rs. 10 lakhs; B) A small enterprise, where equipment costs Rs. 10 lakhs but not more than 2 crores; (C) A medium enterprise with an investment of more than Rs. 5 crore in equipment, but not more than Rs. 5 crore.

Yes, both new and existing businesses are eligible to apply for MSME registration in order to avail benefits and support provided by the government.

To amend Udyam registration, visit the Udyam portal, log in, and select the 'Edit' option for necessary changes in details. Submit updated information for the amendment process.

To correct the name in Udyam registration, access the Udyam portal, log in, and select the 'Edit' option. Update the correct name details and submit for correction approval.

No, under Udyam registration, one applicant can only obtain registration for a single business. Multiple registrations for different businesses by the same applicant are not allowed.