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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

  • Online Registration.
  • It can be filed by self-declaration through the details of the enterprise.
  • One can file more than one Udyog Aadhaar with same Aadhaar Number.
  • No Fees for filing.
  • Once filled and uploaded, the registration number will be thus, received.

 

BENEFITS OF UDYOG AADHAAR REGISTRATION

 

  • After registration with MSME, the micro, small or the medium enterprise will be eligible for the government related scheme benefits such as easy loan, low interest interests, without guarantee loan; etc.
  • The MSME registered enterprises are offered financial support from the Government to participate in foreign expos.
  • The enterprise is also entitled to receive Government subsidies.

 

REGISTRATION PROCESS

  • PAN cards, identity and address proofs of the proprietor/partners/directors needs to be submitted. Private limited companies must submit the MOA and AOA, Form 18, Form 32 and the Incorporation Certificate, while Partnership firms must submit the Partnership Agreement.
  • The rental agreement for the business address, if rented, with the electricity bill.
  • File the application with the relevant state office. Few additional documents may be needed for submission at this stage, as the process differs from state to state. Certain states require MSMEs to produce sale bills of machinery and municipal clearance.

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

  • Provides complete medical care benefits.
  • Includes dependants (family members).
  • It can be used at different ESI dispensaries nationwide.
  • Payments made will be reimbursed.
  • Access to all the medical care in ESI Dispensaries/Hospitals.

 

APPLICABILITY OF REGISTRATION

The following establishments employing 10 or more persons attract ESI contribution;

  • Shops
  • Restaurants
  • Theatres
  • Roadside Motor Transport Establishments
  • Newspaper establishments
  • Medical Institutions
  • Private Educational Institutions

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;

  • Attendance registers
  • Form 6 registers
  • Wages registers
  • Registers for any accidents in the establishments/premises
  • Inspection books
  • Monthly challans and the returns submitted.

 

FILING OF ESI RETURNS

 

ESI returns are to be filed half yearly. It can be done through the ESIC’s online portal.

  • Once logged in, a list of activities or changes or additions that can be made is displayed in the ESI account. For instance, one can update the employee details, report an accident; etc.
  • Before filing the monthly contributions, ensure that all the employee details are latest and thus, updated. If not, the details can be edited.
  • Submit the bank details and file the monthly ESI contribution.
  • After the payment of the contributions, generate challan and the same will be received. The challan is an important document that has to be filed for inspection.

 

Professional Tax (PTEC or PTRC)

 

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