Udyam Registration (MSME) by Sigma Solutions
Introduction
In 2020, a family-run handicraft business wanted to expand operations, gain access to government schemes, and scale production for bulk orders. Despite having a quality product and steady clientele, the business was not officially recognized as a Micro, Small, or Medium Enterprise (MSME).
Without Udyam Registration (the government-recognized MSME certification under the Ministry of MSME), the business couldn’t:
- Apply for low-interest MSME loans
- Avail subsidies and tax rebates
- Benefit from payment protection laws
- Register for government tenders
- Open a business bank account with lending support
With limited documentation knowledge and no previous compliance experience, the owner approached Sigma Solutions for professional support.
Challenges Faced by the Founders
1. MSME Benefits Awareness Gap
- The owner was unaware of Udyam Registration’s role in:
- Accessing priority sector lending
- Availing income tax exemptions
- Participating in government procurement
2. Confusion on MSME Eligibility
- Unsure of:
- How to categorize the business under Micro, Small, or Medium enterprise
- Applicable investment and turnover limits
- Proper industry classification for handicrafts under NAICS
3. Financial Access Limitations
- Couldn’t:
- Secure working capital or Mudra loans
- Claim interest subsidies
- Show official credentials to banks for fund eligibility
4. Vendor Payment Delays
- Larger buyers were delaying payments
- The business couldn’t invoke the MSME Delayed Payments Act for legal recourse
5. No Business Identity
- Facing issues in:
- Opening a dedicated business bank account
- Applying for GST registration
- Registering on e-commerce and government procurement portals
Solution Provided by Sigma Solutions
Sigma Solutions offered a complete MSME registration and compliance solution, ensuring the handicraft business could:
- Get officially registered under Udyam
- Apply for loans and subsidies
- Improve working capital flow
- Gain credibility and access to public sector contracts
Implementation Strategy
1. Business Consultation & MSME Classification
- Conducted a one-on-one session to:
- Explain MSME classification under the revised definition:
- Micro: Investment < ₹1 crore & turnover < ₹5 crore
- Small: Investment < ₹10 crore & turnover < ₹50 crore
- Medium: Investment < ₹50 crore & turnover < ₹250 crore
- Determined that the handicraft unit qualified as a Micro Enterprise
- Explain MSME classification under the revised definition:
- Helped select the right National Industrial Classification (NIC) code for handicraft manufacturing
2. Udyam Registration Assistance
- Registered the business on the Udyam Registration portal using:
- Aadhar-linked authentication
- PAN and business address verification
- Business activity descriptions and investment data
- Issued the Udyam MSME Certificate with URN within 2 working days
3. Banking & Loan Facilitation
- Supported the business in:
- Opening a current account with MSME-backed credentials
- Applying for:
- Mudra Loans (Shishu or Kishore category)
- CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises)
- Guided documentation for collateral-free lending
4. MSME Schemes & Legal Benefits
- Explained:
- Electricity bill rebates available under state MSME schemes
- Eligibility for government subsidies (raw material procurement, export incentives)
- Importance of registering on GeM portal for public procurement
- Provided guidance on:
- Invoking the MSME Delayed Payments Act, 2006 to ensure payments within 45 days from buyers
- Filing complaints on the Samadhan portal if necessary
5. Compliance & Post-Registration Support
- Created a roadmap for:
- Udyam update and renewal reminders
- Future integration with:
- GST registration
- Startup India and ISO certification
- Trademark/IP filings if branding expansion occurs
Results Achieved
Outcome | Details |
MSME Recognition Issued | Udyam Certificate generated in 2 working days |
Loan & Finance Access | Successfully applied for priority sector MSME loans |
Tax & Utility Benefits | Became eligible for tax exemptions and power tariff rebates |
Payment Protection | Activated rights under MSME Delayed Payments Act |
Credibility Boosted | Now eligible for government tenders and vendor registrations |
Conclusion & Key Takeaways
Udyam Registration is a gateway to financial and legal empowerment for small businesses in India. From access to capital and interest subsidies to legal protection from payment delays, the MSME certificate helps build credibility, sustainability, and scalability.
Sigma Solutions simplified every step—from registration to funding—allowing the handicraft business to focus on growth while accessing full government support.
Key Learnings:
- Udyam Registration is essential for unlocking MSME loans, tenders, and tax perks
- Micro-enterprises must know their classification and NAICS code
- Post-registration support is key for renewals, banking, and compliance
- Sigma Solutions provides hands-on MSME onboarding + financial advisory
Related Services by Sigma Solutions
- Startup India Registration & Recognition
- GST Registration & Tax Filing
- Trademark & Intellectual Property Services
- ISO Certifications for MSMEs
- Business Loan & Government Tender Advisory
Other Case Studies
Client Testimonial
“I didn’t realize how beneficial Udyam Registration was until I worked with Sigma Solutions. They handled everything quickly—from the application to MSME loan assistance—helping my business secure much-needed financial support. Now, I’m expanding my operations confidently!”
— Founder, Handicraft Business – Northeast India