Small Scale Industry Registration is a registration from the Ministry of Micro, Small and Medium Enterprises. When a business registers as SSI it becomes eligible to avail Government schemes and subsidies that are exclusive for small businesses.
New Udyog Aadhar replaces SSI / MSME Registration
In order to make the process of registration even more straight forward, a new act called the Udyog Aadhar was created in 2015.Udyog Aadhar has completely replaced MSME/SSI registration.
What are Micro, Small and Medium Enterprise?
The existing MSME classification was based on the criteria of investment in plant and machinery or equipment, further classifying it between manufacturing and service sector. So, to avail the MSME benefits and loans, the enterprise had to limit their investment to a lower limit, as mentioned below:
| Sector | Criteria | Micro Enterprise | Small Enterprise | Medium Enterprise |
| Manufacturing Sector | Investment | < Rs.25 lakh | < Rs.5 crore | < Rs.10 crore |
| Service Sector Investment | Investment | < Rs.10 lakh | < Rs.2 crore | < Rs.5 crore |
New MSME Definition:
Now, under the Aatmanirbhar Bharat Abhiyan (ABA ), the government has revised the definition of MSME. The distinction between the manufacturing and services enterprises has been removed by making the investment amount and annual turnover similar for enterprises engaged in both the sectors.
| Sector/Enterprise Type | Micro Enterprise | Small Enterprise | Medium Enterprise |
| Manufacturing Sector, Services Sector or Both | 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 |
BENEFIT OF MSME REGISTRATION:
Key benefits of New MSME Scheme introduced under Atmanirbhar Bharat Abhiyan or Self-reliant India Scheme 2020 by Government of India are as under:
- Collateral Free Loans to MSMEs
- MSME Loans worth of Rs. 3 lakh crore
- Moratorium period offered is 12 months
- Manufacturing and Service MSMEs shall be considered as same entities
- Repayment Tenure of 48 months
- 100% Credit Guarantee
- To benefit approx. 45 lakh units
- For loans up to Rs. 3 lakh, relief of 2% in interest rate
- Rs. 20,000 crore loan option for MSMEs
- Loans of amount Rs. 10,000 offered to pedestrian business owners
- 50 lakh shopkeepers to benefit, running pedestrian shops
Documents Required for MSME Registration
- Partnership Deed/ MoA and AoA, if any
- Identity Proof: Passport, driving license, PAN card, Voter’s identity card
- Residence Proof: Passport, lease agreement, trade license, telephone and electricity bills, ration card and sales tax certificate
- Age Proof: Passport, Voter’s identity card, Photo PAN card
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