Udyam Registration also known as MSME Registration (MSMEs means micro, small, and medium enterprises.) is a government registration that is provided along with a recognition certificate and a unique number. This is to certify small/medium businesses or enterprises.
The Ministry of Micro, Small Medium Enterprises maintains a portal. It gives the details and steps relating to registration and makes the registration process easy for any person. It provides for free of cost and paperless registration.
To improve ease of doing business for MSMEs, the government had launched the Udyam Registration portal for paperless registration and classification of enterprises based on self-declaration. Small businesses aren’t required to upload any documents or proof for registration.
A micro, small and medium enterprise (MSME) is classified as below-
|Classification||Investment in plant and machinery or equipment||Turnover|
|Microenterprise||Not more than INR 1 Crore||Not more than INR 5 Crore|
|Small enterprise||Not more than INR 10 Crore||Not more than INR 50 Crore|
|Medium enterprise||Not more than INR 50 Crore||Not more than INR 250 Crore|
BENEFITS OF UDYAM REGISTRATION
The Udyam Registration has the following benefits:
- Tender: Udyam registration helps in getting government tenders.
- Loan availability: The bank loans become cheaper as the interest rate is exceptionally low (Up to 1.5% lower than interest on regular loans) for the entity with a Udyam certificate.
- Tax Rebate: There are various tax rebates available for the entity with a Udyam certificate.
- Licensing: Becomes easy to get licenses, approvals, and registrations, irrespective of the field of business. Higher preference is given to businesses registered under Udyam for government license and certification.
- Easy Credit: They get easy access to credit at lower interest rates
- Subsidy: Registered Udyam gets tariff subsidies and tax and capital subsidies.
- Cost Reduction: Registration helps in the reduction of the cost of getting a patent done or the cost of setting up the industry. With the help of many rebates and concessions available.
TIMELINE REQUIRED TO BE REGISTERED
- All existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after the 1st day of July 2020.
- All enterprises registered till 30th June 2020, shall be reclassified in accordance with this notification.
- The existing enterprises registered prior to 30th June 2020, shall continue to be valid only for a period up to the 31stday of March 2021.
- Visit the official website https://udyamregistration.gov.in/
- Enter your name and your 12-digit unique Aadhar number. Click on “Validate & Generate OTP” on your registered mobile number. Enter the OTP.
- Select the type of organization and enter the PAN no and click on validate. PAN validation takes place.
- After filling in all the details mentioned above, the next information that will have to provide will be the complete postal address of the company.
- Enter the enterprise’s active bank account number along with the IFSC code of the concerned branch.
- Mention the mainline activity of the enterprise from the “services” or “manufacturing” and submit the total number of persons employed and National Industry Classification(NIC) Code for Activities.
- Enter the total amount of money (in lakhs) invested in machinery or plant.
- Select the District Industry Centre and Accept the Declaration
- Click on “Submit and Get final OTP”.
- Enter the OTP received on mobile and click on the “Final Submit” button.
- Click on ‘Submit and Get Final OTP’ a registration number will be generated. After the information is verified by the Government, an E-registration document will be generated on the e-mail id.
DOCUMENTS REQUIRED FOR UDYAM REGISTRATION
- Aadhaar Card copy of the Individual / Proprietor / Partners / Directors duly linked with a Mobile No
- Pan Card Copy of Individual / Proprietary / Partners / Directors ( linked with Aadhaar)
- Pan Card of the Company (constitution whatever it may concern)
- Bank Details of INDIVIDUAL / COMPANY either Savings Account or Current Account
- GST Number, If any
- Business sector details
IMPORTANT POINTS TO BE CONSIDERED
- The form for registration shall be as provided in the Udyam Registration portal.
- There will be no fee for filing Udyam Registration
- In case an enterprise is duly registered as an Udyam with PAN, any deficiency of information for previous years when it did not have PAN shall be filled up on a self-declaration basis.
- No enterprise shall file more than one Udyam Registration: Provided that any number of activities including manufacturing or service or both may be specified or added in one Udyam Registration.
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