ZED Certification
Zero Defect Zero Effect (ZED) certification for MSMEs — unlocks credit incentives and government procurement preference
The questions founders ask most about zed certification, answered plainly. If something here doesn't cover your situation, our team will walk you through it before you commit.
Frequently Asked Questions
Is ZED certification mandatory?
No. ZED is a voluntary certification scheme. However, it is strongly incentivised through subsidies and procurement preferences.
What subsidy is available on ZED certification?
The government provides a subsidy of up to 80% of the certification fee for micro enterprises, 60% for small enterprises, and 50% for medium enterprises. Enterprises in NE states, hill states, J&K, and Andaman & Nicobar receive an additional 10% subsidy.
How does ZED affect GeM procurement?
ZED-certified MSMEs may receive preference in GeM procurement for certain product categories. The scheme's linkage with GeM is evolving — we confirm the current benefits applicable to your sector.
What is the ZED assessment framework?
The assessment evaluates: Quality, Environment, Human Resource, Technology and Innovation, and Financial Health. Scores are aggregated to determine the ZED rating.
How long is the ZED certificate valid?
Three years from the date of certification. Renewal involves a reassessment.
Can an MSME upgrade its ZED rating?
Yes. An MSME can apply for re-assessment to a higher rating after implementing the recommended improvements. There is no mandatory waiting period.
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ZED Certification
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