Udyam Registration is a government-provided registration
process that aims to encourage and support small businesses in India. It
replaced the previous registration process of the Udyog Aadhaar Memorandum
(UAM) in July 2020. Registration is free of cost, paperless, and can be done
online.
Udyam Registration is mandatory for all SMEs that wish to
avail of benefits and incentives from the government. Additionally, the
government has also set specific criteria for SMEs to be eligible for Udyam
Registration, such as the turnover limit and investment limit, which must be
fulfilled to be considered eligible for registration.
What is Udyam Registration?
Udyam Registration is a government initiative by the
Ministry of Micro, Small, and Medium Enterprises (MSME) in India that aims to
provide a unique identification number too small and medium enterprises (SMEs)
in the country. This initiative is a replacement for the earlier registration
process known as Udyog Aadhaar Registration.
Objectives of Udyam Registration
The objective of Udyam registration is to provide various
benefits to MSMEs such as:
- Eligibility for various schemes and incentives provided
by the government for MSMEs, such as subsidies, low-interest loans, and tax
exemptions.
- Access to various credit facilities and funding options
from banks and financial institutions.
- Protection under various government policies, such as the
Public Procurement Policy, which reserves certain products and services for
procurement from MSMEs.
- Access to various training and development programs to
improve the skills and knowledge of the MSME owners and employees.
- Easy registration and recognition of the enterprise,
which can help in gaining more business opportunities and building a brand
image.
What is Udyam Registration Portal?
Udyam Registration Portal is an online platform launched by
the Government of India for the registration of micro, small, and medium
enterprises (MSMEs). This portal replaces the earlier Udyog Aadhaar
registration system and is aimed at simplifying the registration process and
promoting ease of doing business for MSMEs in India.
The Udyam Registration Portal allows businesses to register
themselves as MSMEs by providing their Aadhaar number, PAN number, and other
basic details. The portal also offers an option to upload documents, such as
the business's PAN card, bank account details, and ownership documents.
Once registered, the MSME will receive a unique identification
number called the Udyam Registration Number (URN), which will be used for all
future references and communications with government departments and agencies.
Registration on the portal is free of cost and does not require any renewal.
What are the advantages of Udyam Registration
The advantages of Udyam Registration are as follows:
- Access to Government Schemes: Udyam Registration provides
access to various government schemes such as subsidies, incentives, and credit
facilities offered to MSMEs.
- Easy Loan Access: Udyam Registration helps in getting
loans easily from banks and financial institutions as the registration
certificate serves as proof of the existence of the enterprise.
- Lower Interest Rates: MSMEs registered under Udyam can
avail loans at a lower interest rate as compared to non-registered enterprises.
- Legal Protection: Udyam Registration provides legal
protection to the MSMEs against delayed payments and ensures that they receive
their dues on time.
- Government Tenders: Registered MSMEs can participate in
government tenders, which are reserved for MSMEs only.
- Tax Benefits: MSMEs registered under Udyam are eligible
for various tax benefits, including exemption from direct tax laws and reduced
patent registration fees.
- Credibility: Udyam Registration enhances the credibility
of the MSMEs and helps in building trust among customers and suppliers.
- Digital Support: Udyam Registration allows MSMEs to avail
of various digital platforms for marketing and promoting their products and
services.
What is the new definition of MSME under Udyam
registration?
MSMEs are characterized by the Udyam registration process
based on annual turnover and investment in factories, machinery or equipment.
Here is the new definition:
1) Micro enterprises:
- Investment in
factory, machinery and equipment is limited to INR 1 cr.
- Annual turnover
below Rs.5 cr.
2) Small Enterprises:
- Investment in
factory, machinery and equipment is limited to INR 10 cr.
- Annual turnover below Rs 50 cr.
3) Medium
Enterprises:
- Investments in
factories, machinery and equipment not exceeding his INR 50 cr.
- Annual turnover he does not exceed INR 250 cr.
Documents required for Udyam Registration process .
Here are the documents required for Udyam registration:
1) Aadhaar Card: The Aadhaar card of the proprietor,
partner, or director is required for Udyam registration.
2) PAN Card: PAN card details of the enterprise or the
proprietor, partner, or director are required for Udyam registration.
3) Business Address Proof: Proof of the enterprise's
registered office address is required. It can be a utility bill, lease
agreement, or property tax receipt.
4) Bank Account Details: The enterprise's bank account
details, including the IFSC code, are required.
5) NIC Code: National Industrial Classification (NIC) code
is used to identify the business activity of the enterprise.
Printing Udyam Registration Certificate
To print your Udyam Registration Certificate, you can follow
these steps:
1) Go to the Udyam Registration portal at
https://udyamregistration.gov.in/.
2) Login to your account using your Udyam Registration
Number and the mobile number used during registration.
3) Once logged in, click on the "Print
Certificate" button.
4) Your Udyam Registration Certificate will be displayed on
the screen.
5) Click on the "Print" button to print the
certificate.
How to register for udyam registration certificate?
Steps to follow for registration:
1) Visit the official website of the Ministry of Micro,
Small and Medium Enterprises (MSME) at https://udyamregistration.gov.in/
2) Click on the "For New Entrepreneurs "who are
not yet Registered as MSMEs.
3) Enter the Aadhaar number of the authorized signatory and
verify it through the OTP sent to the registered mobile number
4) Enter the required details such as name, PAN, email ID,
and bank account details
5) Choose the appropriate classification of the enterprise
based on the investment in plant and machinery or equipment and turnover
6) Submit the application along with the necessary documents
such as proof of business address, ownership proof, and other supporting documents
7) Make the payment for the registration fee,
8) After successful submission of the application, a unique
Udyam registration number will be generated, and the Udyam registration
certificate will be sent to the registered email ID.
Conclusion
Udyam Registration has been a positive step towards
promoting ease of doing business in India and boosting the growth of MSMEs. The
new registration process also introduced the concept of classifying enterprises
based on their turnover, which is expected to help the government target
support and incentives to the right businesses.
