MSME/Udyam Registration

1. What is MSME?

MSME stands for Micro, Small, and Medium Enterprises, governed by the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006.
The Government of India promotes MSMEs through policies, subsidies, and credit facilities because these enterprises are the backbone of the Indian economy – contributing nearly 30% of India’s GDP, 48% of exports, and creating more than 11 crore jobs.

In July 2020, the government launched the Udyam Registration portal, which replaced the earlier Udyog Aadhaar Memorandum (UAM).

Every business falling under MSME limits should obtain a Udyam Registration Certificate to access legal protections, subsidies, and schemes.

2. Classification of MSMEs (Post 2020 Revision)

The new MSME definition is based on both Investment and Turnover.

Both manufacturing and service sector businesses are treated equally.

3. Why is MSME Registration Important?

Without registration, your business is treated as a normal entity and loses various advantages.
With MSME (Udyam) registration, you get:

• Recognition as an MSME by Govt. of India

• Access to collateral-free loans

• Subsidies and exemptions on tax, patent, and electricity

• Priority sector lending by banks

• Protection from delayed payments under MSMED Act, 2006

• Special preference in government tenders

4. Benefits of MSME Registration with Nexgenca

Financial Benefits

• Collateral-free loans under Credit Guarantee Fund Scheme (CGTMSE)

• Reduced interest rates for MSME loans

• Easy overdraft facility

Legal & Protection Benefits

• Buyers must make payment to MSMEs within 45 days; otherwise, compound interest is payable

• Arbitration support for delayed payments

Government Subsidies

• 50% subsidy for patent & trademark registration

• ISO Certification cost reimbursement

• Electricity bill concessions

Market & Tender Advantages

• Preference in government procurement policies

• Waiver of Earnest Money Deposit (EMD) for government tenders

Tax Benefits

• Direct tax exemptions under Income Tax Act

• GST concessions on procurement in some states

5. Who Can Apply?

• Proprietorships

• Partnership Firms

• Limited Liability Partnerships (LLPs)

• Private Limited Companies

• One Person Companies (OPCs)

• Hindu Undivided Families (HUFs)

• Producer Companies / Co-operatives

• Trusts & Societies engaged in commercial activities

Even freelancers and startups can apply if they fit within limits.

6. Documents Required

• Aadhaar card of proprietor/partners/directors

• PAN card (individual/company)

• Bank details (IFSC + Account No.)

• Business address proof (rent agreement / utility bill)

• GSTIN (if applicable)

• Number of employees

• Investment details in plant & machinery/equipment

7. Process of MSME (Udyam) Registration with Nexgenca

1. Share Aadhaar, PAN, and business details with Nexgenca experts

2. Application filed online through the Udyam Registration Portal

3. Government auto-verifies PAN & GST details with databases

4. Unique Udyam Registration Number (URN) and MSME certificate issued

5. Nexgenca delivers your MSME Certificate within 1–2 working days

Government Fee: ₹0 (Free of cost)
Nexgenca Fee: Only for professional support & compliance management

8. Validity of MSME Registration

• Lifetime validity – No renewal required.

• Update required only if turnover or investment category changes.

9. MSME Penalties & Non-Compliance

• False declaration of turnover/investment → Penalty + cancellation of MSME benefits

• Misuse of subsidies or loans → Recovery + legal action

• Delayed payment to MSMEs (by buyers) → Compound interest at 3x bank rate payable to MSME supplier

10. Why Choose Nexgenca?

• End-to-end registration support

• MSME Certificate in 1–2 days

• Expert advisory on subsidy claims, loans, tenders

• Lifetime advisory for MSME benefits

• One-stop compliance partner (ROC, GST, ITR, PF/ESI, TDS, etc.)