ZED Certification: Eligibility, Category, Process and Incentives

Introduction

ZED certification scheme is a transformative initiative by the Indian government that is specially designed for the MSMEs. It is an extensive drive to spread awareness among the MSME’s about the Zero Defect Zero Effect activities and incentivise them while also motivating them to become MSME champions. As per the Ministry of MSME’s report over 63 Lakh MSMEs contribute nearly 30% of India's GDP. Therefore ensuring its quality production and environment sustainability is essential.

Moreover, this certification is not all about certifying the business but also enhances the accessibility and efficiency in the marketplace and making MSMEs more competitive on a global scale. Every MSMEs, willing to enhance their production quality and market visibility must obtain ZED certification and they may choose different ZED certification categories as per their requirement. At bizfoc, we know your all business needs and are committed to assisting you to obtain ZED certification by providing expert ZED consultancy and supportive service to simplify your registration process.

What is ZED Certification?

ZED Certification is a scheme which is started by the Indian Government under the Ministry of MSME (Micro, Small, and Medium Enterprises) to encourage sustainable manufacturing and production activities among the MSMEs. Basically, the ZED certification is implemented in two phases - first is for “Manufacturing MSMEs” and second is for “Service Sector MSMEs and exporting. In order to minimize their environmental impact, businesses should aim for zero defects in their products -the zero effect.

The key objective of ZED Certification

The ZED certification works for promoting Zero Defect Zero Effect practices amongs MSMEs, some other key objectives are as follow:

1. Motivates MSME for manufacturing qualitative products by using latest technologies and tools that also helps to grow the productivity with least effect on the environment.
2. For creating the ZED ecosystem for manufacturers to boost competitiveness and enabling exports.
3. To encourage adoption of ZED practices.
4. Promoting MSMEs to get a higher level of ZED Certification and take advantage of several incentives.
5. Spread awareness on Zero Defect and Zero Effect goods by MSMe sustainable practices.
6. Identify what needs to be improved in order to help the government prioritize investments and make policy decisions.

ZED Certification Levels

There are three ZED certification level, that can be clarify by below mentioned table:

Eligibility for ZED Certification

The MSME Sustainable (ZED) Certification is open to all MSMEs registered with UDYAM (of the MoMSME), and all related benefits/incentives will apply to the MSMEs who qualify.

Documents for ZED Certification

The complete list of documents for ZED certification as follow:

1. Udyam Registration Certificate
2. Quality Certificates such as ISO
3. Basic details of business
4. Images of products & shop
5. Goods descriptions & labeling
6. Documentation of Fire Safety system
7. Compliance with Regulatory
8. Self Declaration forms

Process of ZED Certification

The stepwise process for obtaining ZED Certification is as follow:

Step 1: Registration on the ZED Portal

At the initial stage, you must visit the ZED portal at https://zed.msme.gov.in and generate ZED ID via submitting basic information of the business such as name, Udhayam registration number, contact information, and other required details.

Step 2: Take the ZED Pledge

MSME's should take a formal pledge to adhere to Zero Defect (producing quality products with no defects) and Zero Effect (ensuring no negative environmental impact). It is a pre-commitment to pursue sustainable and quality-oriented business practices.

Step 3: Upload Required documents

During this stage, you must certify that your business complies with all regulatory and statutory requirements. In addition to the above-mentioned documents, MSMEs need to submit a few more.

Step 4: Assessment Based on Certification Level

A different assessment is conducted depending on the level of ZED Certification applied for - Bronze, Silver, or Gold. Such as - for Bronze level ZED Certification a basic desktop verification is required, for Silver level ZED certification a remote assessment is performed after the document verification and for the Gold level ZED Certification a thorough physical on-site assessment is conducted to assure compliance with advanced standard and criteria.

Step 5: Award of ZED Certification

Once all these requirements are according to the ZED guidelines, the business is awarded the ZED Certification for the level which they applied for. If someone applied for Silver and Gold ZED Certification, a surveillance assessment is conducted after the 18 month for ensuring all the compliances are going accordingly or not.

Fees for ZED Certification

The fees for ZED Certification depends on the different certification levels such as-

1. Bronze Level ZED certification - ₹10,000
2. Silver Level ZED Certification - ₹40,000
3. Gold Level ZED Certification - ₹90,000

There are many subsidies provided by the Government according to the size of the MSME. the subsidies plan as follows:

Note: These subsidies' main objective is to reduce the certification cost and make it more accessible for all MSMEs to obtain ZED Certification.

Parameters exempted from Assessments

ZED Certification assessments are not required for MSME units that already hold certain certifications. NABCB-accredited bodies or Accreditation Bodies that are signatories to the Multilateral Recognition Arrangement (MLA) of the International Accreditation Forum (IAF) must issue the certifications.

Advantages of ZED Certification

There are several advantages of obtaining ZED Certification such as-

1. Improved Productivity: ZED Certification promotes lean management practices and efficient processes, reducing waste and optimizing resource use.
2. Improved Quality: Through implementing stringent quality measure aims with the zero defect, business can assure the product meets high standards. It helps to reduce defects and also increases reliability.
3. Reduce Rejection: The quantity of goods that are rejected, either internally or after they are reaching customers, declines as quality increases.
4. Improved Profits: By enhancing the quality measures, productivity and reduced rejection rates, businesses improve their profit rates.

Why Bizfoc?

BizFoc is a dedicated ZED Certification consultant who will simplify the ZED certification procedure for your business under the professional guidance. Here’s how we assist you:

• We provide you with expert assistance and consultation for all your requirements that are required for your ZED certification.
• BizFoc also helps you to obtain ZED ID and subsidies.
• Our team reviews each and every requirement accurately and fills out the ZED Application Form submission.
• We provide affordable and transparent professional charges.
• We liaise with ZED officials to address queries and ensure smooth approval.

In general, we assist the client to solve their queries and doubts regarding the documentation, procedures, and fees for filling out the form. Other than making your filing successful, we help you make a better decision by covering every aspect of what you actually need to get your ZED.

Conclusion

The ZED (Zero Defect, Zero Effect) Certification scheme introduced by the Indian Government with the main objective to help MSME to adopt best practices in quality, sustainability and efficiency. Through ZED certificate registration, the business not only enhances the quality of goods and reduces the environmental impact but gains accessibility in the marketplace, which helps to increase productivity and receive various government incentives. Get ZED Certification now to prepare your business for the future and join the ranks of MSME champions with Bizfoc!

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