IS TRADER COVER UNDER MSME...??

THE ANSWER IS A BIG NO

Firstly, trading activities covered under codes 45,46,47 of NIC 2008 do not fall under MSME category.
Hence, udyogaadhaar(MSME) registration is not applicable to trading activities.

Trading activities usually obtain trade license under shops and establishment act from Municipal authorities, as alternate registration for MSME

MSME covers only manufacturing and service industries. Trading companies are not covered by the scheme. MSME is to support startups with subsidies and benefits, trading companies are just like middlemen, a link between manufacturer and customer. Hence not covered under the scheme.


What are the activities specifically excluded from coverage under MSME?

Ministry of Micro, Small and Medium Enterprises (MSME) has clarified as per notification S.O 2576 (E) dated 18.09.2015 and subsequent notification no S.O 85(E) dated 10.1.2017, activities that would be specifically not included in the manufacturing or production of commodities or rendering of services as per Section 7 of the said Act.

1. Forest and Logging
2. Fishing and aquaculture
3. Wholesale, retail trade and repair of motor vehicle and motorcycles
4. Wholesale trade except for motor vehicles and motorcycles.
5. Retail Trade Except of Motor Vehicles and motorcycles
6. Activities of households as employees for domestic personnel
7. Undifferentiated goods and services-producing activities of private households for own
8. Activities of extraterritorial organizations and bodies

Other Frequently Asked Questions on MSME 

Q. Is MSME updated to Udyog Aadhar?

A. Yes, MSME registration has been replaced with the Udyog Aadhar registration. If any micro, small and medium industries want to start any business; they need to do the registration with MSME/Udyog Aadhar. This registration with MSME/Udyog Aadhar can be done in two ways online and offline. This facility provides the business with a lot of benefits and subsidies.

Q. Is aadhar card compulsory?

A. Yes. For registration under the Udyog Aadhar scheme, aadhar card is compulsory. In case an applicant is other than the proprietor, the Aadhar card of the partner and the director will be required.

Q. Can existing and new businesses both apply?

A. Yes, an existing and new business can apply for MSME/Udyog Aadhar registration. Provided the existing unit is functioning and meets the threshold limits for registration.

Q. What is the validity of the certificate?

A. There is no expiry of the Udyog Aadhar Certificate. As long as the entity is ethical and financially healthy there will be no expiry of the certificate.

Q. Do I need multiple registrations for manufacturing plants in different cities?

A. No. The MSME/Udyog Aadhar certificate is for a single entity irrespective of multiple branches or plants. However, information about multiple branches or plants must be furnished.

Q. Why Traders Not cover in MSME?

A. The main objective of MSME promotion is to provide subsidies and benefits to goods and services made in India. Those who have trading firms only work as a middleman, irrespective of the product. Therefore Trading Firms do not register under MSME.

Q. What are the multiple benefits of MSME?

A. Click here 

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