MSME / Udyam Registration Assistance

What are the MSME classification criteria under Udyam (as of 2020)?

Under the revised MSMED Act (amended 2020): Micro enterprise — investment up to ₹1 crore AND turnover up to ₹5 crore; Small enterprise — investment up to ₹10 crore AND turnover up to ₹50 crore; Medium enterprise — investment up to ₹50 crore AND turnover up to ₹250 crore. Both investment and turnover thresholds must be satisfied simultaneously. Investment means net value of plant, machinery, and equipment (excluding land, buildings, and certain other assets).

What benefits does Udyam Registration provide?

Key benefits: (a) Priority Sector Lending — banks must allocate 40% of credit to priority sectors including MSME; (b) Collateral-free loans through CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) up to ₹5 crore; (c) 1.5% interest subvention on incremental credit under ECLGS; (d) MSME Samadhaan — online payment delay complaint portal (buyers delaying payment beyond 45 days can be reported); (e) 25% reservation in government procurement; (f) Reduced fees for trademark and patent filing; (g) Protection under MSMED Act Section 15-23 for delayed payments.

Is Udyam Registration free? Why does OnlineTaxGuru charge ₹499?

The government portal (udyamregistration.gov.in) registration is free — government charges NIL. OnlineTaxGuru's ₹499 fee covers: CA verification of investment/turnover classification accuracy, Aadhaar OTP assistance and filing, business category advice (manufacturing vs service), and a post-registration compliance briefing. Many businesses file in the wrong category, claiming higher-than-actual investment — this creates issues during MSME Samadhaan proceedings and bank loan verifications. Our CA ensures accurate filing.

What is the MSME 45-day payment rule and Samadhaan?

Section 15 of the MSMED Act mandates that buyers (particularly large enterprises) must pay MSME suppliers within 45 days of goods/services delivery (or within the agreed timeline, maximum 45 days). If payment is delayed, interest at 3× RBI bank rate (currently ~18%) is payable by the buyer. MSMEs can file complaints on the Samadhaan portal (samadhaan.msme.gov.in) — resolution is mandated within 75 days. Large companies must also disclose MSME dues in their annual audit report.

Can a Pvt Ltd company or LLP get Udyam Registration?

Yes. All business types — proprietorship, partnership, LLP, Pvt Ltd, Section 8 Company, cooperative societies, self-help groups, trusts — can register on Udyam. For Pvt Ltd and LLP, the registration is done using the PAN of the company/LLP (not the directors' PAN), and the authorised signatory (managing director/designated partner) provides their Aadhaar for OTP verification.