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Udyam Registration
What Is Udyam Registration?
The Ministry of MSMEs launched the Udyam Registration Portal to digitize India and streamline processes. It is an improved, tech-first system to assist small and medium businesses to grow and provide all the necessary support.
Udyam Registration, also known as MSME Registration, involves the government sign-off and the provision of an Udyam Recognition Certificate and a Unique Number. This certification is essential if you seek legal and operational certification for small or medium businesses. The Ministry of MSME, Government of India, conducts Udyam registration for micro and small businesses.
Udyam Registration Process: A Step-by-Step Guide
Ready to unlock the benefits of MSME status for your business? The Udyam registration process is your gateway, and it’s easier than you might think. Here’s a simplified guide to help you navigate the Udyam registration online journey:
- Head over to the official Udyam registration portal. This is your one-stop shop for everything related to online Udyam registration.
- On the homepage, locate the option labeled “For new entrepreneurs who are not registered yet as MSME or those with EM-II.” This is the correct path for first-time registrations.
- Enter your Aadhaar number and your name as per the Aadhaar card. Click the “Validate & Generate OTP” button to initiate the verification process.
- An OTP (One Time Password) will be sent to the mobile number linked to your Aadhaar card. Enter the received OTP and click “Validate” to proceed.
- Once your Aadhaar is verified, you’ll be directed to the PAN verification page. Here, select your “Type of Organisation” and enter your PAN number. Click “Validate” and also indicate whether you’ve filed the previous year’s ITR and if you possess a GSTIN (if applicable).
- Now comes the main event: the Udyam registration application form. This form will request details like your name, mobile number, enterprise name, location, address, status (proprietorship, partnership, etc.), bank details, business activity, NIC code (National Industrial Classification code), and employee count. Fill out these details accurately.
- When finished, provide investment details (plant & machinery), turnover details, and select the declaration checkbox. Click “Submit” and you’ll receive a final OTP.
- Enter the final OTP and click “Submit” to complete the online Udyam registration process. Congratulations! Your Udyam registration online is completed. Your Udyam e-registration certificate will be sent to your registered email address.
By following these straightforward steps, you can successfully navigate the Udyam registration process and unlock the numerous benefits available to registered MSMEs. Remember, the Udyam registration portal is your official resource for the entire process, so keep it bookmarked for future reference. Help others who come seeking the answer on how to register at Udyam.
Features of Udyam Registration
MSMEs can now register online through Udyam, a simplified and streamlined system that offers several benefits. Some of the key features of Udyam registration are:
– No physical paperwork: Enjoy the ease of Udyam registration online and save your valuable time. Yes! It is done entirely in digital mode, reducing hassles for MSMEs.
– One form for all: Udyam registration requires only one form to fill in, which covers all the relevant information, making it easier and faster for MSMEs to register.
– Zero registration fee: Udyam registration is free for all MSMEs, regardless of their size or sector, encouraging more entrepreneurs to start and grow their businesses.
– Investment-based classification: MSMEs are classified based on their investment in plant and machinery or equipment instead of only plant and machinery. This gives a more accurate and comprehensive picture of the enterprises.
– Dynamic and updated database: Udyam registration creates a dynamic and updated database of MSMEs, which can be used by policymakers, researchers, and businesses for various purposes.
Guidelines for Udyam Registration Application
– Utilize the exclusively online process available on the Udyam Registration Portal for your application.
– Upon successful registration, you will be assigned a permanent identification number and an e-certificate known as the ‘Udyam Registration Number’ and ‘Udyam Registration Certificate,’ respectively.
– Ensure that you meet the specified criteria for classification as a medium, small, or micro-enterprise to qualify for MSME registration.
Benefits Of Udyam Registration
Here are some of the Udyam certificate benefits:
1. Borrowers get collateral-free loans from banks
2. Licensing, approvals, and registrations are accessible
3. Special considerations are given to international trade
4. The government offers concessions on various bills, including electricity bills
5. Organizations registered with Udyam get eligible for Credit Linked Capital Subsidy Scheme
6. Reimbursement of ISO certification fees
7. Protection against late payments or supplied services
8. Bank loans with subsidies and lower interest rates
9. Production/manufacturing sectors have special reservation policies
10. Direct tax laws rule exemption
11. Subsidy on NSIC performance fees and credit rating
12. Barcode registration subsidy
13. Patent registration subsidy
Eligibility For Registration
Per the latest guidelines, Udyam certificate benefits are only available to businesses that meet specific criteria. Registration for Udyam depends on three key aspects: type of enterprise, annual turnover, and investment of the MSME.
1. An MSME must fall into one of three categories: micro, small, or medium
2. MSMEs receive different benefits based on their annual turnover. Registration and its benefits are available to micro-enterprises with turnovers up to 5 crores. Small firms with a turnover of up to Rs 75 crores and medium firms with a turnover of up to Rs 250 crores are also eligible.
3. Udyam registration benefits micro-businesses with investments below one crore. The investment limit for small businesses should not exceed Rs 10 crores, and for medium businesses, it should be below Rs 50 crores.
Documents Required For Udyam Registration
• PAN of the enterprise
• GST Certificate
• Copy of the entrepreneur’s Aadhaar
• Social Category of entrepreneur
• Phone number
• E-mail address
• Business Commencement Date
• A/C No. and IFSC Code (or a copy of the passbook)
• Number of employees (with male and female divisions)
• The nature of the business
• The latest audited financial statements
Features of Udyam Registration Certificate
– A permanent registration number is provided to MSMEs on the Udyam registration certificate.
– The Udyam registration certificate is an e-certificate issued on the email of the entrepreneur once the registration is done online.
– The Udyam certificate is valid till the existence of the enterprise; thus, it is not required to be renewed.
– An enterprise cannot apply for more than one MSME registration. Thus, all activities of the enterprise are covered in the Udyam registration certificate.
– A Udyam registration certificate is necessary to obtain loans from banks and benefits provided under various schemes to MSMEs.
– The Udyam registration certifies that an enterprise is covered under the MSME category.
Get A Small Business Loan From IIFL Finance
Are you ready to start a business and get an Udyam Registration? Fulfill your capital needs with IIFL Finance business loans.
IIFL offers a wide range of business loans to meet the needs of every borrower. Getting a loan with us is hassle-free due to our commitment to speed and convenience. With these loans, you can expand your business, pay your employees, manage operational costs, and meet additional day-to-day expenses. You can visit our website or branch for more information about business loans.
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- Q1. Is Udyam registration mandatory?
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Ans. The Udyam registration process is compulsory for any company registered with another ministry agency under the Department of MSME.
- Q2. Is Udyam registration free of cost?
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Ans. Yes, Udyam registration is free and does not include any special registration fee.
- Q3. Who should register for Udyam?
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Udyam registration is beneficial for any business classified as a Micro, Small, and Medium Enterprise (MSME) in India. This includes:
- Proprietorships: Businesses owned and operated by a single individual.
- Partnerships: Businesses co-owned and managed by two or more individuals.
- Hindu Undivided Families (HUFs): Family businesses governed by Hindu law.
- Companies: Registered companies, including Limited Liability Partnerships (LLPs).
- Societies: Registered societies and trusts.
- Q4. Should we pay for Udyam registration?
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No, Udyam registration is completely free of charge. The official government portal, https://udyamregistration.gov.in, facilitates the process without any registration fees.
