A BRIEF INTRODUCTION TO MSME, UDYAM, AND UDYOG AADHAR

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A BRIEF INTRODUCTION TO MSME, UDYAM, AND UDYOG
AADHAR
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TABLE OF CONTENT -

• A BRIEF INTRODUCTION TO MSME, UDYAM, AND UDYOG
  AADHAR
• Distinguish between MSME, Udyam, Udyog Aadhar
• BENEFITS OF MSME, UDYAM, UDYOG AADHAR
• CONCLUSION

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A BRIEF INTRODUCTION TO MSME, UDYAM, AND UDYOG
AADHAR

• MSME (Micro, Small, and Medium Enterprises),
  Udyam, and Udyog Aadhar
• are terms used in the context of businesses in
  India. Let's look at each of these terms
  individually
• MSME (Micro, Small, and Medium Enterprises)
• MSME stands for Micro, Small, and Medium
  Enterprises. It is a classification framework
  established by the Government of India to
  categorize and support enterprises based on their
  size and investment. The classification is
  primarily determined by the investment in plant
  and machinery or equipment for manufacturing
  enterprises and investment in equipment for
  service enterprises.
• As per the MSME Development (MSMED) Act, 2006,
  the following criteria define the classification
  of MSMEs in India
• Micro Enterprises Investment up to INR 1 crore
  and turnover up to INR 5 crores.
• Small Enterprises Investment up to INR 10 crores
  and turnover up to INR 50 crores.
• Medium Enterprises Investment up to INR 50
  crores and turnover up to INR 250 crores.
• MSMEs play a crucial role in the Indian economy
  by contributing to employment generation,
  exports, and overall economic growth. The
  government provides various schemes, incentives,
  and support mechanisms to promote and strengthen
  MSMEs in the country.

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Udyam

• Udyam is a digital registration process
  introduced by India's Ministry of Micro, Small,
  and Medium Enterprises (MSME). It replaced the
  earlier system called Udyog Aadhar for MSME
  registration. Udyam Registration is an online
  process that enables enterprises to obtain an
  Udyam Registration Certificate, which serves as a
  recognition of their status as an MSME.
• To register under Udyam, businesses must provide
  their Aadhaar number, PAN (Permanent Account
  Number), and other relevant details. The
  registration process is free of cost and can be
  done through the Udyam Registration portal

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Udyog Aadhar

• Udyog Aadhar was the previous registration
  process for MSMEs in India. It aimed to provide a
  unique identification number to MSMEs for ease of
  doing business. Under the Udyog Aadhar scheme,
  businesses were required to provide their Aadhaar
  number and other details to register and obtain a
  Udyog Aadhar certificate.
• With the introduction of Udyam, Udyog Aadhar has
  been replaced, and businesses are now required to
  register through the Udyam Registration process.
• Both Udyam and Udyog Aadhar serve the purpose of
  providing recognition and benefits to MSMEs, such
  as access to credit, subsidies, and various
  government schemes targeted at supporting their
  growth and development.
• ALSO READ Update Udyam certificate

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Distinguish between MSME, Udyam, Udyog Aadhar

• Certainly! Here's a table summarizing the
  differences between MSME, Udyam, and Udyog
  Aadhar

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• Continue...

Aspect MSME Udyam Udyog Aadhar
Definition A classification framework for Micro, small, and medium enterprises based on size and investment The online registration process for obtaining Udyam Registration Certificate The previous registration process for MSMEs to obtain Udyog Aadhar Certificate
Registration Process Not a registration process itself Online registration process through the Udyam Registration portal Online registration process through the Udyog Aadhar portal
Primary Requirement N/A Aadhaar number, PAN, and other relevant details Aadhaar number and other details
Purpose Categorization and support for enterprises based on size Digital recognition of MSME status and access to benefits and schemes Unique identification number for MSMEs for ease of doing business
Replacement N/A Replaced the Udyog Aadhar registration N/A
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BENEFITS OF MSME, UDYAM, UDYOG AADHAR
Benefits MSME Udyam Udyog Aadhar
Access to Credit Collateral-free loans through various government schemes Improved access to credit facilities Access to credit facilities
Financial Support Subsidies on various expenses and activities Financial support for technology upgradation Financial support for technology upgradation
Government Tenders Reservation of certain tenders for MSMEs Easy participation in government tenders Easy participation in government tenders
Protection against Delayed Payments Protection against delayed payment from buyers Facilitation for quick resolution of delayed payments from buyers Protection against delayed payments from buyers
Intellectual Property Rights (IPR) Support Reimbursement of expenses for IPR registration Reimbursement of IPR-related expenses Assistance in IPR-related matters
Market Development and Export Promotion Assistance in market development and export promotion Support for market development and export promotion Assistance in market development and export promotion
Technology and Skill Upgradation Support for technology and skill upgradation Assistance in technology and skill upgradation Support for technology and skill upgradation
Regulatory Benefits Exemptions or concessions in certain regulations Simplified regulatory compliances Exemptions or concessions in certain regulations
Cluster Development and Infrastructure Support Support for cluster development and infrastructure Assistance in cluster development and infrastructure Support for cluster development and infrastructure
Insurance and Energy Cost Benefits Reimbursement of expenses for obtaining certifications Insurance and energy cost benefits Reimbursement of expenses for obtaining certifications Insurance and energy cost benefits
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CONCLUSION
In conclusion, MSMEs (Micro, Small, and Medium
Enterprises) play a vital role in the Indian
economy, contributing to employment generation,
exports, and overall economic growth. The
introduction of Udyam and the replacement of
Udyog Aadhar have streamlined the registration
process for MSMEs, providing them with digital
recognition and access to various benefits and
support. Udyam, the current online registration
process, offers MSMEs an Udyam Registration
Certificate, while Udyog Aadhar was the previous
registration system. Both Udyam and Udyog Aadhar
aims to facilitate ease of doing business for
MSMEs and provide them with opportunities for
growth, access to credit, subsidies, government
tenders, protection against delayed payments,
technology and skill upgradation support,
regulatory benefits, market development, and
more. These initiatives by the government aim to
promote the development and sustainability of
MSMEs in India.
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