Indian Micro, Small, and Medium Enterprises (MSMEs) are said to be the backbone of India's economy. Udyam Registration was started to grant these MSMEs official recognition and government benefits. Once an entrepreneur completes Udyam Registration, he/she can receive a Udyam Certificate and, in the follow-up process, a Udyam Annexure Download Certificate.
But not all entrepreneurs are given an Annexure Certificate. There are certain criteria that have to be met, which have been prescribed. In this article, we will detail why and which MSMEs are eligible to be given a Udyam Annexure Certificate and the regulations that have to be followed.
Definition and Classification of MSMEs
Let us first observe what an MSME is. The Government of India has categorized MSMEs into three categories based on their investment and turnover per year:
(A) Micro Enterprise
Investment: Up to a limit of ₹2.5 crore
Annual Turnover: Up to a limit of ₹ 10 crore
(B) Small Enterprise
Investment: Up to ₹25 crore
Annual Turnover: Up to ₹100 crore
(C) Medium Enterprise
Investment: Above ₹25 crore to ₹125 crore
Annual Turnover: Between ₹100 crore and ₹500 crore
All the businesses included in the above definition alone qualify as MSMEs and can seek a Udyam Annexure Certificate.
Legitimate Udyam Registration is Compulsory
The most preliminary requirement for seeking a Udyam Annexure Certificate is that the MSME should possess a legitimate Udyam Registration.
Registration is compulsory before availing of an Annexure Certificate.
The Aadhaar card of the owner and the PAN number of the enterprise are required for Udyam Registration.
If a business previously registered was already registered under MSME (Udyog Aadhaar), then it must re-register under the Udyam branch.
Exclusive for business entities, not individuals
The Udyam Annexure Certificate is for business identification purposes only. It is issued to entities that exclusively engage in business.
Eligible Entities:
Individual Proprietorship
Partnership Firm
Private Limited Company
Public Limited Company
One Person Company (OPC)
Limited Liability Partnership (LLP)
Cooperative Societies
Trusts and Societies
Business Should Be Registered in India
The Udyam Annexure Certificate applies only to businesses that are already formed and registered in India.
Foreign companies or foreign investment companies cannot apply for this certificate unless they are registered in India.
MSMEs must submit a permanent business address in India and recent documents like electricity bills, rent agreements, etc.
If you forgot udyam registration number, you can recover it through the Udyam registration portal.
Aadhaar, PAN, and GST Numbers Compulsory
MSMEs need the following documents for an Annexure Certificate:
Aadhaar number of the proprietor/partner
PAN card of the business
GSTIN, if available
Documents will not be accepted in the event of non-filing of the same.
Business active
Only active MSMEs can be taken into consideration.
In case the company is closed down or has been opened on fake documents, an Annexure Certificate will not be granted.
The government also verifies MSMEs' data if and when necessary.
Correct Information and Documents Must be Furnished
MSMEs must provide correct business data, including investment amount, turnover, employee strength, business type, etc.
In the case of any wrong information being provided and found, the Annexure Certificate could be revoked.
Exporters and Service Providers Eligible Too
The Annexure Certificate of Udyam is not limited to the manufacturing industry; exporters and the service industry can also benefit.
IT Firms
Consultancy Firms
Travel Agencies
Healthcare and Education Services
Other Professional Services
Recent Bank Statements
MSMEs will have to submit their bank account information while applying for an Annexure Certificate.
The account should be in the company's name.
A cancelled check or bank statement may be requested as proof.
Other Eligibility Criteria
The firm must have no pending legal restrictions or fraud cases.
In case the MSME has ever breached government rules, an Annexure Certificate will be rejected.
MSMEs need renewal of registration time to time.
What is the advantage MSMEs gain from a Udyam Annexure Certificate?
With this certificate, an MSME is privileged with numerous benefits, such as.
Easy access to government schemes and subsidies
Lower-interest loans
Government procurement and tender preference
Relaxation in tax and registration
Increased business credibility and visibility
Conclusion
Udyam Annexure Certificate is a doorway to official recognition and benefits for MSMEs. But to attain that, they have to fulfill a few eligibility criteria—like being under the MSME definition, being registered under Udyam, having the right documents, and being actively functioning in India.
One can simply get this certificate if one complies with these rules.
