Small, micro, and medium business owners who haven’t yet registered their MSME (Micro Small, Medium Enterprise) can take advantage of a number of benefits by doing so through Udyam Registration, formerly known as Udyog Aadhar. The registration procedures prior to Udyam were quite difficult. The extensive and time-consuming procedural format necessitated the submission of a substantial amount of documents. However, Udyam Registration has made the procedures easier and is advantageous to Indian micro, small, and medium-sized businesses.
How does Udyam Registration work?
The Udyam Registration, also known as MSME Registration, is the sole government registration that grants MSMEs a certificate of recognition along with a unique number. Udyam Registration’s main objective is to optimise benefits for Indian micro, small, and medium-sized firms that are registered through MSME using their unique Aadhar Card Numbers.
Candidates Eligible for Udyam Registration
Companies that are qualified for Udyam Registration should either be engaged in the production, production, processing, preservation, or provision of services, or both. Import- and export-related businesses are ineligible to register for Udyam Registration. According to the qualifying requirements, MSME can be categorised as:
- Micro Enterprises: Where the turnover is no greater than five crore rupees and the investment in plant, machinery, or equipment is no greater than one crore rupees.
- Small Enterprises: If the sales is no more than fifty crore rupees and the investment in plant, machinery, or equipment is no more than ten crore rupees.
- Medium Enterprises: If the turnover is no more than 250 billion rupees and the investment in plant, machinery, or equipment is no more than 50 billion rupees
The Advantages of Udyam Registration
Entities will profit in a number of ways if they register their firms with Udyam Registration. Here are a few advantages that registered business owners can take advantage of.
- Direct tax legislation governs exemption
- Subsidy for patent registration
- Eligibility for Industrial Promotion Subsidy (IPS)
- Bank loans with subsidized interest rates
- unsecured loans from banks
- Protection from late payments, against the supply of goods and services
- A special incentive is provided for reservation practises in the manufacturing or production sector.
- Ease of acquiring approvals, licenses, and registrations
- Becomes qualified for CLCSS
- Special consideration for international trade shows
- Waiver of the government’s security deposit (EMD)
- Reduction in electricity costs
- Waiver of stamp duty and registration costs for purchases of commercial real estate
- Payment of ISO certification fees
- Subsidy for NSIC performance and credit rating fees
- Subsidy for barcode registration
- Aid in obtaining government contracts.
- lower-cost bank loans.
- Tax refunds
- Licences, approvals, and registrations are simple to obtain.
- Registrations, approvals, and licences are easy to obtain.
Required Documents for Udyam Registration
Since it is based on self-declaration, the MSME Registration process is entirely online and doesn’t call for the submission of any paperwork. You must first meet a certain prerequisite, though, in order to register.
- In the case of a proprietorship firm, the owner’s Aadhar card is necessary.
- For a company, limited liability partnership, cooperative society, society, or trust, PAN and GST-related information are necessary.
- If the organisation already has a PAN and is registered as an MSME under Udyam, any information missing from years when the firm did not have a PAN must be filled out on a self-declaration basis.
Process of Udyam Registration
The registration process for Udyam is rather simple, and filling out the forms is simple as well. Although the new system is a modified version of the older one, it seeks information considerably less frequently. One of the most important things to keep in mind is that since the Government of India website is free, it should be used to apply for MSME Registration.
Here is a short guide on how to register as an MSME and get your Udyam Registration certificate.
Go to the Udyam Registration portal’s official website and click the “For new Entrepreneurs who are not registered as MSME” button.
In this step, enter your personal information.
- Your 12 digit Aadhar card number and name.
- Go to “Validate & Generate OTP” and click.
- After getting your OTP on your registered mobile number, enter it.
- Make your choice of organisation type.
- Put your PAN number here.
- Select “Validate”
Fill out your correspondence information, including your organization’s complete address.
Enter your bank information
Enter the details of your business.
- You must state the primary activity, such as “Service” or “Manufacturing”.
- The whole complement of workers
- Your National Industry Certificate (NIC) must be presented.
Choosing the District Industry Centre and approving the declaration process
- The District Industry Centre will be chosen as the penultimate phase.
- It is necessary to click “Submit and Get final OTP”.
- The registration process is completed by clicking “Final Submit” after entering the OTP that was delivered to your mobile device.
Suggested Read: Update Udyam Certificate
A variety of perks and programmes are available to your business when you enrol it with Udyam Registration. There are very few excuses for MSME’s not to register given how simple the registration process is. Login and register your company before March 31, 2023, the deadline for doing so using the Udyam platform for current businesses.