Ministry of MSME Certified Initiative

Achieve Zero Defect
Zero Effect.

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Government Initiative

What is MSME ZED Certification?

ZED Certification (Zero Defect Zero Effect) is an effort of India's Ministry of Micro, Small, and Medium Enterprises (MSME). The major purpose of this certification is to encourage MSMEs to implement best practices in their manufacturing processes that assure high quality (zero defects) and low environmental impact (zero effect).

MSME ZED's Purpose & Component

MSME ZED Certification is an extensive effort to raise awareness among MSMEs about Zero Defect Zero Effect (ZED) practices, motivate and incentivise them for ZED Certification, and encourage them to become MSME Champions.

MSMEs can significantly reduce waste, increase productivity, raise environmental awareness, save energy, use natural resources more efficiently, extend their markets, and more by pursuing ZED Certification.

The ZED Certification strives to improve an MSME's competitiveness through assessment, handholding, management and technological intervention, making it more than merely a certification.

MSMEs will be encouraged to embrace best practices in workplace culture, product, process, and system standardization to improve their global competitiveness and sustainability.

Increase Productivity
Reduce Waste
Save Energy
Global Markets

Goals of the ZED Certification Program

To attain high quality and productivity with minimal environmental impact by encouraging MSMEs to manufacture quality products using modern technology and techniques.

To increase competitiveness and make exports easier by establishing an ecosystem for ZED manufacturing.

Recognise the achievements of MSMEs and push for the use of ZED techniques across the industry.

Graded incentives can be used to encourage MSMEs to achieve greater levels of ZED certification.

Raise awareness about the need for products that are free of defects and effects through the MSME ZED Certification.

Key Principles of ZED

Three fundamental pillars that define the ZED Certification framework for manufacturing excellence

Zero Defect

Manufacturing products with zero defects through quality control systems, process optimization, and continuous improvement methodologies.

Zero Effect

Sustainable production with minimal environmental impact, focusing on waste reduction, energy efficiency, and eco-friendly practices.

Global Standards

Alignment with international quality standards making Indian MSMEs competitive in domestic and global markets.

Benefits & Incentives

Benefits & Incentives of ZED Certification

ZED Certification offers MSMEs financial, environmental, and social benefits, enhancing competitiveness and sustainability. Financially, it provides subsidies—80% for micro, 60% for small, and 50% for medium enterprises—along with additional incentives for women, SC/ST entrepreneurs, and SFURTI members.

Financial & Economic Benefits

Financial and Economic benefits from ZED Certification boost MSMEs' competitiveness and profitability. Enhancing product quality and operational efficiency can boost revenue and cut costs. Key financial and economic benefits include:

Financial Support based on Enterprise size

Micro Enterprises: Eligible for an 80% subsidy on the costs associated with ZED Certification. Small Enterprises: Qualify for a 60% subsidy to reduce certification expenses. Medium Enterprises: Receive a 50% subsidy, making the certification process more cost-effective.

Additional Subsidies for Women, SC/ST Entrepreneurs, and SFURTI Members

Women/SC/ST Entrepreneurs: Receive an extra 10% subsidy, encouraging their participation in sustainable business certification. Women/SC/ST Entrepreneurs: Eligible for an additional 5% subsidy specifically designed for MSMEs under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) or MSE-CDP.

The International Cooperation Scheme

MSMEs can participate in international trade fairs, exhibits, and other events under this strategy. This support includes:

  • Reimbursement of stall rental charges up to ₹3.50 lakh or the actual rent paid (whichever is lower).
  • Reimbursement for economy class travel up to ₹1.75 lakh or the actual fare paid (whichever is lower).
  • Other Expenses: Up to ₹50,000 reimbursement for qualified expenses, extra ₹10,000 per MSME unit. Events in Latin America have a greater maximum reimbursement of ₹75,000 plus ₹10,000 per MSME.
  • This funding allows MSMEs to enter foreign markets and form global relationships.

MSME Credit Guarantee Scheme

ZED-certified MSMEs enjoy 85% enhanced guarantee coverage under this scheme, providing better credit access. Additionally, they get a 10% discount on guarantee fees, making credit facilities more affordable to support business growth.

Testing, Management Systems, and Product Certification Support

Quality certifications, management system certifications (like ISO), and testing prices might be subsidised for MSMEs. The government reimburses up to 75% of certification costs, with a maximum subsidy of ₹50,000. This helps MSMEs demonstrate industry norms and gain market access.

ZED Certification Joining Bonus Reward

To promote Zero Defect Zero Effect (ZED) manufacturing, MSMEs can receive a ₹10,000 award for signing the ZED Pledge. This award can be used to apply for Bronze, Silver, or Gold ZED Certification. The incentive lasts one year after the ZED Pledge. MSMEs are encouraged to improve product quality, eliminate waste, and lessen their environmental effect by this campaign.

Environmental Benefits

ZED Certification encourages sustainable manufacturing techniques that dramatically reduce the environmental effects of MSMEs. Businesses that implement eco-friendly operations can reduce waste, conserve resources, and lower emissions. This not only helps to conserve the environment, but it also corresponds with global sustainability objectives.

Waste Reduction

Implementing effective waste management methods to reduce trash generation while encouraging recycling and reuse.

Energy Conservation

Using energy-efficient technology and practices to reduce energy usage and carbon footprints.

Resource Optimization

Ensuring that natural resources are used optimally to reduce depletion and promote sustainability.

Pollution Control

Taking steps to control and minimise pollution, including air, water, and soil contamination.

Social Benefits

ZED Certification also brings significant social benefits by promoting responsible business practices and contributing to the well-being of communities. Key social benefits include:

Job Creation

ZED Certification promotes the competitiveness and expansion of MSMEs, hence creating new job opportunities and helping local economies.

Community Development

Businesses that implement sustainable practices help their communities grow and thrive.

Employee Well-being

Creating safe and healthy work environments ensures employees' well-being and contentment, leading to increased productivity and morale.

Corporate Social Responsibility

ZED-certified enterprises are perceived as responsible and ethical, strengthening their reputation and creating stakeholder trust.

Understanding ZED Certification

Understanding ZED Certification

ZED Certification is a comprehensive assessment and rating system that evaluates MSMEs on quality management, environmental sustainability, and manufacturing excellence. It provides a roadmap for continuous improvement.

1

Quality Assessment

Comprehensive evaluation of manufacturing processes and quality systems.

2

Sustainability Check

Environmental impact assessment and eco-friendly practices verification.

3

Rating & Recognition

Bronze, Silver, or Gold certification based on performance levels.

4

Continuous Improvement

Ongoing support and guidance for quality enhancement.

Eligibility Criteria

Eligibility Criteria for ZED Certification

Who Can Apply?

All Micro, Small, and Medium Enterprises (MSMEs) registered with the UDYAM registration system run by the Ministry of Micro, Small, and Medium Enterprises (MOMSME) and those who are recognized through executive orders issued by the Additional Secretary & Development Commissioner (MSME) are eligible to participate in the MSME Sustainable (ZED) Certification and get associated benefits and incentives.

This comprises both manufacturing and service-sector MSMEs. The ZED Certification aims to increase MSMEs' worldwide competitiveness by encouraging sustainable and efficient manufacturing methods.

UDYAM Registered MSMEs
Manufacturing Sector
Service Sector
All MSME Categories

Eligible MSME Categories

Manufacturing MSMEs

Enterprises engaged in manufacturing activities with valid UDYAM registration. Focus on production, quality control, and sustainable manufacturing practices.

Service MSMEs

Service sector enterprises committed to quality and process excellence. Includes consulting, IT services, healthcare, and other service-oriented businesses.

Compliant Units

Enterprises meeting statutory and regulatory compliance requirements. Must maintain proper documentation and adherence to legal standards.

Key Requirements

UDYAM Registration
Statutory Compliance
Quality Commitment
Proper Documentation
Sustainability Focus
Growth Mindset
Documentation

Required Documents

Below are the essential documents required for ZED Certification, ensuring compliance with regulatory, quality, and environmental standards.

UDYAM Registration Certificate

Evidence of registration with the Ministry of Micro, Small and Medium Enterprises (MSME), like the UDYAM registration certificate.

PAN Card

The 10-digit alphanumeric identifier that is issued by India's Income Tax Department. It serves as a distinct identification number for people and companies.

GST Registration Certificate

This 15-digit registration number has been provided by the Goods and Services Tax (GST) authorities in India. It is essential for companies that have signed up for GST.

Proof of Business Address

A copy of the lease, an electricity bill, or another document confirming the business address may serve as proof of business address.

Financial Reports

Reports covering the last three years, such as balance sheets, income statements, and cash flow reports.

Quality Management System (QMS) Documentation

Records associated with the execution of quality management systems in the organization.

Environmental Management System (EMS) Documentation

Demonstration of environmental management strategies, comprising policies, processes, and documentation.

Energy Management System (EnMS) Documentation

Recording of energy management strategies and efforts aimed at enhancing energy efficiency.

Safety Management Records

Documentation and guidelines concerning the management of health and safety in the workplace.

Human Resource Management Records

Papers associated with human resource management activities, such as employee training and development initiatives.

Production Documentation

This encompasses documentation of the MSME's production output, quality assurance measures, and waste disposal methods.

Adherence to Regulatory Standards

Records demonstrating compliance with pertinent regulatory standards, encompassing fire safety systems and additional compulsory regulations.

Visual Documentation

Required Photographs

Ensure the following photographs are submitted to comply with ZED assessment criteria.

Business Premises (exterior and interior)
Production Area
Quality Control Area
Storage Area
Waste Management Area
Safety Measures (fire extinguishers, emergency exits, safety signage)
Environmental Management Practices
Employee Facilities (restrooms, break areas)
Product Photographs
Compliance Documentation (licenses, certificates, regulatory approvals)

Important Note

All photographs should be clear, well-lit, and show the complete area or equipment. Multiple angles may be required for comprehensive documentation. Ensure all safety signage and compliance certificates are clearly visible in the photographs.

Key Advantages of ZED Certification

Subsidy Support

50-80% government subsidy on certification costs based on MSME category.

Credit Guarantee

85% credit guarantee coverage with reduced guarantee fees.

Export Support

Trade fair participation and airfare reimbursement for international events.

ISO Reimbursement

Reimbursement for ISO certification and testing charges.

Market Recognition

Enhanced credibility and trust among customers and partners.

Competitive Edge

Improved competitiveness in domestic and international markets.

Step-By-Step

Registration Process for ZED Certification

Follow this comprehensive guide to successfully complete your ZED Certification registration and unlock government subsidies, quality recognition, and market advantages.

1

Complete the Online Application Form

Navigate to the ZED Certification Portal at the official government website. Click on "Sign In/Create Account" button. New users must register by entering UDYAM registration number, mobile number, and email. Accurately fill out the online application form with comprehensive details about your MSME.

2

Complete Payment

The cost for ZED Certification depends on the certification level (Bronze, Silver, Gold) and the size of the MSME. Complete the payment via the secure online payment gateway available on the portal. Ensure to retain a copy of the payment receipt for your records.

3

Upload Required Documents

Submit all required documents as outlined in the eligibility criteria section. This includes business registration papers, financial reports, quality management system records, and other pertinent documents. The ZED authorities will authenticate the submitted documents.

4

Processing Time by the Government

After document validation, the MSME will be assessed by authorized assessment organizations. The evaluation will assess adherence to ZED standards and practices. Should any non-conformities arise during the evaluation, the MSME will be allotted a specific timeframe to rectify and resolve these matters.

Release of ZED Certificate

Upon reviewing the assessment results and recommendations, the final ZED Certificate will be granted to the MSME. The certificate will reflect the level of certification attained (Bronze, Silver, Gold). The ZED Certificate remains valid for a designated duration, following which the MSME may be required to undergo re-evaluation and renewal to maintain their certification status.

Processing Timeline

The entire ZED Certification process typically takes 10-15 days from registration to certificate issuance, depending on the readiness of the enterprise and audit scheduling.

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Three Levels

ZED Certification Levels

Bronze

The Bronze Level is the first level of certification in the ZED Certification Program. It focuses on fundamental quality and environmental standards, encouraging MSMEs to implement foundational practices that assure low defects and environmental impact.

  • Quality Management: Use of basic quality management methods to achieve constant product quality.
  • Environmental Management: Implementing basic environmental management techniques to decrease waste and conserve resources.
  • Safety Measures: Basic safety measures implemented to safeguard employees' safety in the workplace.

Silver

The Silver Level is the intermediate accreditation requiring MSMEs to achieve more strict criteria than Bronze. It emphasizes sophisticated quality management and environmental principles while encouraging continual development and sustainability.

  • Advanced Quality Management: Advanced techniques to improve product quality and minimize defects.
  • Enhanced Environmental Management: Advanced strategies to reduce environmental impact and promote sustainability.
  • Energy Efficiency: Use of energy-saving devices and techniques to reduce energy usage.
  • Employee Training: Training and development programs to improve employee skills and knowledge.
  • Compliance & Audits: Regular compliance audits to ensure regulatory requirements are met.

Gold

The Gold Level is the most advanced accreditation requiring excellence in all elements of production, including innovation, sustainability, and global competitiveness. MSMEs must exhibit leadership in quality, environmental management, and social responsibility.

  • Excellence in Quality: World-class quality management systems to achieve zero faults and excellent product quality.
  • Sustainable Practices: Complete sustainable practices including waste reduction, resource efficiency, and pollution control.
  • Innovation & Technology: Application of innovative technologies to increase productivity and competitiveness.
  • Corporate Social Responsibility: Demonstration of social responsibility through community development and employee well-being programs.
  • Global Competitiveness: Meeting global standards to improve market access and competitiveness.
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Why Choose Udyog Suvidha Kendra

Your trusted partner for ZED Certification and comprehensive business support services.

Our Commitment to Quality

Our commitment to providing the best possible quality in all of our services is steadfast at Udyog Suvidha Kendra. Our stringent quality control procedures, continuous improvement programs, and painstaking attention to detail all demonstrate our dedication to quality. By offering dependable, effective, and efficient solutions that support business success, we aim to surpass our clients' expectations. Our platform is made to make starting and operating a business easier while guaranteeing that each step is done carefully and precisely.

Proven Track Record

With a proven track record of success, Udyog Suvidha Kendra has established itself as a trusted partner for SMEs across India. Our platform has facilitated the growth and development of numerous businesses by providing comprehensive support and guidance. Our client's success stories are a testament to our expertise and dedication to fostering entrepreneurship and business growth. We have helped countless businesses navigate the complexities of regulatory requirements, ensuring they remain compliant and continue to grow.

Expert Support & Guidance

Our team of highly qualified professionals brings a wealth of experience and expertise in various domains, including Information Technology (IT), marketing, and accounting. We are passionately dedicated to providing comprehensive support to startups, MSMEs, and small businesses. Our expert guidance ensures that our clients receive personalized, trustworthy, and effective solutions tailored to their unique needs. We understand the challenges faced by businesses, especially in rural and semi-urban areas, and we are committed to providing the support they need to succeed.

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