What is MSME ?
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.
So, if you want to get your business registered as MSME, you need to file your business with Udyog Aadhaar Memorandum (UAM) once your business has started operations, so that using the UAM number you can access other services.
Earlier, the registration process was a two step process:
- EM-I = Registration before setup of unit
- EM-II = Registration after commencement of operations
But after notification (dated 18-09-2015) has been passed, the two step process has been abolished and all efforts are made to popularize the filling of UAM (Udyog Aadhaar Memorandum) on the portal created by Ministry of MSME.
Now, EM-II has been replaced by UAM i.e. Enterprise has to file UAM after it has started its operations. There is no EM-I. So, if you want to get your business registered as MSME, you need to file UAM once you have started your business operations. In order to promote ease in doing business for MSMEs, lesser information is required in UAM than in EM-I/II
After registration, any enterprise becomes qualified to reap the benefits offered under the MSMED Act.
If it is not mandatory, why should I file UAM?
There are benefits waiting for you once you get yourself registered… Let’s take a look
Benefits from Central Government:
- Easy sanction of bank loans
- Lower rates of interest
- Excise exemption scheme
- Exempt under Direct tax Laws and statutory support.