#H1 MSME Udyam Registration – Register Your MSME’s Udyam Online
Udyam registration is a new method for registering MSME (micro, small, and medium firms) that was established on July 1, 2020 by the Ministry of Micro, Small, and Medium firms. From the same date, the Ministry revised the definition of MSMEs.
This process’s enterprise is known as Udyam, and its registration process is known as Udyam Registration. Following registration, a permanent registration number will be issued.
#H2 Udyog Aadhaar Registration vs. Udyam Registration
Udyam Registration, also known as MSME Registration, is a government registration that comes with a recognition certificate and a unique number. This registration is intended to certify micro, small, and medium-sized businesses. Since July 2020, the Udyog Aadhaar registration has been replaced by the Udyam registration. Udyam registration has made the process more accessible than it was previously during the Udyog Aadhaar registration process.
Udyam registration is required to take advantage of the Ministry of MSME’s many initiatives or programmes, such as the Credit Guarantee Scheme, public procurement policy, an advantage in Government Tenders, and protection against late payments, among others.
#H3 Certificate of Registration for Udyam
After completing the Udyam Registration process, a certificate will be issued online. This Udyam Registration Certificate will include a dynamic QR Code that will allow you to access information about the company.
#H4 Udyam Registration Renewal
Udyam Registration Number is a permanent identity number that will not need to be renewed.
#H5 Udyam Registration Advantages
The Udayam Registration procedure is straightforward, and no paperwork is required to receive Udayam Registration. Having an Udyam Registration for your business allows it to the following benefits:
- Preference in Purchasing Government Tenders
- Udyam registration will assist in obtaining bank loans without the use of collateral or mortgage. Exemption from the interest rate on bank overdrafts (OD) of 1%
- Tax breaks are provided to Udyam-registered businesses in a variety of forms.
- Businesses registered with Udyam are given first priority for government licences and certification.
- Tariff, tax, and capital benefits are all available to registered Udyam.
- Electricity Bill Reduction
- It provides insurance against Buyers’ payment delays.
- Tax Breaks
- Special 50% off government filing fees for trademarks and patents
- Rapid Dispute Resolution
#H6 Who is eligible to apply for Udyam registration?
Udyam Registration is available to anyone who wishes to start a micro, small, or medium-sized business.
Proprietorships, Hindu Undivided Families (HUF), Partnership Firms, One Person Companies, Private Limited Companies, Limited Companies, Producer Companies, Limited Liability Partnerships, any association of people, cooperative societies, or any other undertaking can apply for MSME Udyam Registration in India.
#H7 MSME Definition Revised – The Atamnirbhar Bharat Package
After 14 years since the MSME Development Act, on 13.05.2020, a modification in the MSME definition was announced in the Atma Nirbhar Bharat package to bring additional units under the ambit of the initiatives announced. The composite criteria for defining an MSME, according to this package, are investment and turnover; the cap has been raised. The divide between the service and manufacturing sectors has also gone.
The investment and turnover limits for Micro units (both manufacturing and services) have been raised to Rs. 1 crore.
Similarly, the small unit’s investment and turnover restrictions have been raised to Rs. 10 Crore.
The investment and turnover limitations for medium firms were raised to Rs. 20 crore and Rs. 100 crore, respectively.
Examine the table below for a better understanding:
Composite Criteria: Plant/Machine Investment and Turnover
Sl.No Type of Enterprises Investment Turnover
1 Micro enterprises Less than one crore rupees Not more than Rs.5 crore
2 Small enterprises Less than ten crore rupees Not more than Rs.50 crore
3 Medium enterprises Less than Rs.20 crore Not more than Rs.100 crore
MSME Notification July 2021: Retail and Wholesale Trade Added to MSME
Previously, MSME registration only applied to the manufacturing and service industries. However, the government announced in July 2021 that the wholesale and retail trades will fall under the MSME classification and thus be eligible for MSME registration, with the exception of motor vehicles and motorcycles. Manufacturing and service industries, as well as wholesale and retail commerce, are so covered and eligible for MSME registration.
#H8 When should you apply for MSME Udyam Registration?
Obtaining Udyam Registration is not required and is entirely up to the Entrepreneur. However, it is recommended that most businesses obtain MSME registration immediately after registration in order to take advantage of the various government benefits.
#H9 Documents Required for Online Udyam Registration
- The Online Udyam Registration application process is based on self-declaration, and no further documents must be uploaded.
- For the registration process, the applicant will only need to provide their 12-digit Aadhaar Number, PAN, and Business Bank Account details.
#H9 Udyam New Enterprise Registration – Udyam Registration Portal
To register on the Udyam Registration Portal, the new business must first complete the following steps:
* The new business wants to become an MSME and must apply for online Udyam Registration using the Udyam Registration Portal.
* The application is based on self-declaration, and no other documents, certificates, papers, or evidence are required. Registration for Udyam is free.
* An Aadhaar number is required to obtain Udyam Registration. Depending on the type of business, the following Aadhaar number is necessary.
| Type of firm | The person whose Aadhaar number is required |
| Proprietorship firm | Proprietor |
| Partnership firm | Managing partner |
| Hindu Undivided Family | Karta |
| Company or a Co-operative Society or a Trust or a Limited Liability Partnership | Authorized signatory |
* PAN and GST-related information on firm investment and turnover would be automatically extracted from government databases.
* MSME online is completely connected with the Income Tax and GST IN systems.
* The enterprise will be assigned a ‘Udyam Registration Number’ (i.e., permanent identity number) upon successful application submission.
* After the registration process is completed, the enterprise will be issued a ‘Udyam Registration Certificate.’
It is important to note that an organization can only file one Udyam Registration. Furthermore, multiple enterprise activities, such as manufacturing, services, or both, can be added to a single Udyam Registration.
