If you own a small, micro, or medium business and haven’t yet registered your MSME (Micro Small Medium Enterprise), you should do so through Udyam Registration, formerly known as Udyog Aadhar, to reap a slew of benefits. The registration procedures prior to Udyam were quite difficult. The process format was extensive and time-consuming, necessitating the submission of a substantial amount of paperwork. The processes have grown simplified since the introduction of Udyam Registration, which benefits Indian micro, small, and medium businesses.
What does it mean to register for Udyam?
Udyam Registration, commonly known as MSME Registration, is a government registration that gives MSMEs a unique number and a recognition certificate. The main goal of Udyam Registration is to deliver maximum benefit to micro, small, and medium firms in India through the GOI (Government of India), who are registered through MSME using their particular Aadhar Card Numbers.
Candidates who are eligible to register for Udyam
Organizations that are eligible for Udyam Registration must be involved in the manufacturing, production, processing, preservation, or provision of goods or services. MSME can be classed as follows according to on the eligibility criteria:
- Micro businesses are those with a total investment in plant and machinery or equipment of less than one crore rupees and a turnover of less than five crore rupees.
- Small businesses are those with a total investment in plant and machinery or equipment of less than ten crore rupees and a turnover of less than fifty crore rupees.
- Medium-sized businesses are those with a capital investment of less than fifty crore rupees and a turnover of less than two hundred and fifty crore rupees.
The Benefits of Registering for Udyam
After registering their company with Udyam Registration, entrepreneurs will reap a slew of benefits. The following are some of the benefits that business owners might obtain after registering.
- Direct tax laws regulate exemption.
- Patent registration subsidy
- Eligibility for the Subsidy for Industrial Promotion (IPS)
- No collateral loans are available from banks.
- Late payments, as well as material and service deliveries, are all protected.
- Reservation policies in the industrial or production sector have a specific benefit.
- Registrations, licenses, and permissions are easy to obtain.
- CLCSS eligibility is established (credit linked capital subsidy scheme)
- International trade exhibitions are given special priority.
- Waiver of the government’s security deposit (EMD) ( It is useful while participating in tenders)
- Purchases of commercial real estate are exempt from stamp duty and registration fees.
- Fees for ISO certification are reimbursed.
- Subsidy for NSIC performance and credit rating fees
- Barcode registration subsidy
- Obtaining government tenders with the help of a third party.
- Bank loans that are less expensive.
- Rebates on taxes
- Licenses, approvals, and registrations are simple to obtain.
- Subsidies on tariffs, taxes, and capital are available.
Documents Required for Udyam Registration:
The MSME Registration procedure is entirely online, and because it is based on self-declaration, it does not require any papers to complete. However, there are a few prerequisites that must be met before you can register.
- In the case of a proprietorship firm, the proprietor’s Aadhar Card is necessary.
- In the case of a Company, a Limited Liability Partnership, a Cooperative Society, a Society, or a Trust, PAN and GST-related information is necessary.
- If an organization has already been registered as an MSME under Udyam and has a deficiency of information from earlier years when it did not have a PAN, the information must be self-declared.
Registration Process for Udyam
The Udyam Registration procedure is simple, and filling out the forms is very simple. The new system is an improvised version of the previous one, and it seeks significantly less data than the previous one. One of the most important things to remember is that MSME registration is free and may only be done through the Government of India website.
The following is a step-by-step method to registering with MSME and receiving your Udyam Registration certificate.
1. Select “For new Entrepreneurs who have not yet registered as MSME” on the Udyam Registration portal’s official website.
2. Fill in your personal information in this section.
- Your name and Aadhar card number, which is 12 digits long.
- Select “Validate & Generate OTP” from the drop-down menu.
- After getting your OTP on your registered mobile number, enter it.
3. Verification with the pan
- Choose the type of business you want to start (Micro, Small or Medium)
- Fill up your PAN number.
- Validate by clicking the button.
4. Fill in your correspondence information – including your company’s/enterprise’s/complete organization’s address.
5. Fill in the details of your bank account.
6. Describe your business in-depth.
- You must state the primary activity, such as “Service” or “Manufacturing.”
- The total number of employees
- Obtain a National Industry Certificate and submit it (NIC)
7. Accept the declaration process and choose the District Industry Center.
- The District Industry Center must be chosen as the final step.
- Select “Submit and Get Final OTP” from the drop-down menu.
- To finish the registration procedure, enter the OTP that was sent to your phone number and click “Final Submit.”
Suggested Read- print udyam certificate
Enrolling your company with Udyam Registration comes with a slew of incentives and schemes that your company may take advantage of. There are very few reasons for MSMEs not to register, especially with the registration procedure being as simple as it is. The deadline for current businesses to register on the Udyam portal is December 31, 2021, so log in and get your firm registered.