UDYOG AADHAR REGISTRATION (MSME/SSI)
The Udyog Aadhaar is a registration process having a twelve-digit registration number which came into effect on 18th September 2015 to encourage online filing of entrepreneur’s memorandum (known as the MSME registration) for micro, small and medium enterprises. It will thus, simplify the registration process with one page registration form.
MSME will hence, certify its existence, its business activity, ownership details, and employment details through this registration form.
MSME enterprises are considered to be the foundation of any economy and are an engine for potential economic growth, ensuring equitable development for all. Therefore, to encourage and promote MSMEs, through various subsidies, schemes and incentives the Government plans to promote MSMEs through the MSMED Act.
To avail a host of benefits from the Central or State Government and the Banking Sector as well, the MSME Registration is mandatory.
MSME in the manufacturing and service sector both; can obtain MSME Registration under the MSMED Act. The MSME registration is favorable as it provides a range of benefits like eligibility for lower interest rates,
Excise exemption scheme, subsidies for power tariff and capital investments; etc.
FOR
MICROENTERPRISES
Microenterprises are the smallest manufacturing and service enterprises not having an investment of more than Rs. 25 lakhs and Rs. 10 lakhs respectively in plant and machinery.
SMALL ENTERPRISES
Small manufacturing enterprises may invest between Rs. 25 lakhs to Rs. 5 crores, while small service enterprises may invest between Rs. 10 lakhs to Rs. 2 crores in plant and machinery.
MEDIUM ENTERPRISES
Medium manufacturing enterprises may invest between Rs. 5 crores to Rs. 10 crores, while small service enterprises may invest Rs. 2 crores and Rs. 5 crores in plant and machinery.
SALIENT FEATURES OF UDYOG AADHAAR
BENEFITS OF UDYOG AADHAAR REGISTRATION
REGISTRATION PROCESS
MSMEs will be thus, issued a provisional certificate (if the unit has not started production) which is valid for five years. A permanent certificate will then be issued after the plant & machinery is operational.
ESIC REGISTRATION
MEANING
Employee State Insurance (ESI) is governed by the ESI Act, 1948, a self-financing social security scheme and health insurance plan for the Indian workers. ESIC manages the fund required as per the rules and regulations set by the Act. It is an autonomous corporation managed by Employees State Insurance Corporation (ESIC) under the Ministry of Labour and Employment.
According to the Act, ESI is mandatory for business entities employing 20 0r more individuals, also employees earning not more than Rs. 15,000 monthly need to contribute 1.75% of their pay towards the ESI contribution, whereas 4.75% will be contributed towards their ESI by the company, the total share being 6.5 percentages.
The ESI scheme provides various benefits to the employees, has a large network of dispensaries, and hospitals nationwide run by the concerned state governments for facilitating speedy and efficient medical care. In addition, to the medical care, insured persons also benefit the sick pay benefits. Registration with ESI also improves worker morale and ensures employee retention.
ADVANTAGES OF ESI REGISTRATION
APPLICABILITY OF REGISTRATION
The following establishments employing 10 or more persons attract ESI contribution;
In some states the minimum employees required is 20 or more. Also, few State Governments have not extended the scheme to include Medical & Educational Institutions.
DOCUMENTS FOR ESI RETURNS
For filing ESI returns, the following documents must be maintained regularly;
FILING OF ESI RETURNS
ESI returns are to be filed half yearly. It can be done through the ESIC’s online portal.