Udyam registration is a government registration that is issued under the MSME ministry. MSME ministry works under the central government, it has been founded under the MSME act 2006. It is headquartered in New Delhi. MSME stands for micro, small and medium enterprises. It aims to enroll all the small-scale businesses which are in operation in India. Many small industries which are running the business are facing many difficulties, to curb these difficulties the central government introduced a special type of registration which is Udyam registration. Here the enterprises can get several benefits from the government which will help the enterprise in their business.
Here I will provide you with a complete guide about the Udyam registration that will help you to understand the process of registration, the benefits of Udyam registration, and the need for the registration.
First of all, we need to understand the criterias of MSME :
According to the given criteria of the MSME, the enterprises can avail benefits for their firms.
The enterprises whose annual investment is not more than Rs 1 cr and the annual turnover is not more than 5 cr, come under the micro-level enterprises.
For the small enterprises, the investment of the firm should not be more than Rs 10 cr and the annual turnover should be below Rs 50 cr.
And last for the medium enterprise the firm annual investment should be below Rs 50 cr and the annual revenue should be below Rs 250 cr.
These MSME criteria are for the firms that are engaging in the manufacturing of the goods, processing or the preserving of the goods, and the enterprises that provide the services to the consumers.
Enterprises or the firms that are engaged in exporting, importing, and selling the goods are not included under the MSME criteria.
Now the registration which is provided by the MSME is called the Udyam registration.
Firm or enterprise owners can go to the official website for registration. Registered firms can avail a variety of benefits for their enterprises. The registration owner does need not to provide or upload any documents in the Udyam registration portal.
It is paperless and it takes less time the complete registration. Only an aadhar card is mandatory in the initial registration process.
The firm’s owner needs to pay any payment for the registration. The main intentions or aims of the central government behind the Udyam registration are to ease or facilitate the small scale businesses or companies by several means and provide the enterprise’s many benefits and advantages through the schemes that are running under the name ministry.
Eligibility for the registration process on the udyam portal :
enterprises or companies that are engaged or Involved in manufacturing/production/processing/preservation of goods and providing the services to the consumers in the market, these enterprises are eligible for the Udyam registration.
We can say it in another sense that the enterprises that are involved in selling, importing, and exporting the goods.
Through its scheme or initiatives, they provide assistance to the registered enterprises.
Now we will see the variety of benefits provided by the MSME through its scheme :
- Registered enterprises are given preferences applying for the government tenders
- To take a loan from the bank they need not give his collateral and can take the loan at a very low bank rate
- They get the rebates on taxes
- Electricity concessions
- They have protection against delaying the payment from customers
- They can get up to 50 % discount on “government fees or trademark and patent”
- For any dispute, they get a fast resolution
- Firms owner can get protection against late payment
- Reimbursement of fees in ISO certificates
- exemption of indirect tax laws norms
- Get the subsidy on patent
- And also get a subsidy on bar code registration
- Subsidy on industrial registration
Also, Read – Benefits of udyam registration
The documents required for the online Udyam registration:
- Aadhar card number is necessary for the Udyam registration process. If it is a proprietorship firm then the proprietor of the firm has to provide his aadhar card number.
If it is a partnership firm, LLP, or the trust then in this situation the managing director of the firm will have to provide his aadhar card number.
- GSTIN and PAN along with the AADHAR ID are to be required to be provided, in case it is an LLP or company.
- If the enterprises do not provide the PAN card number then they shall fill up the self-declaration form.
- Unlike the earlier process for registration, here for the Udyam registration the enterprises if they are involved in any activities like manufacturing or providing services or both can not file more than one Udyam registration on the official portal.
For the online process of Udyam registration :
- First, visit the official portal of the Udyam registration website.
- Here you are required to fill in all details on the registration form, details should be entered correctly
- Now make an online payment for the registration
- After completing the process registration executive will verify and process your registration application
- Within 2 working hours, you get the Udyam registration certificate on your registered email address.
Now you can download your certificate easily on the Udyam registration portal.
And this Udyam registration certificate will offer you many benefits like bank loans at a low rate of interest, rebates on tariffs, many types of subsidies on government schemes, etc.
Udyam registration was previously known as udyog aadhar.
Udyam registration is a certificate that recognizes the enterprises under the MSME ministry. It contains a different unique number that certifies your enterprises and supports the enterprises to avail many advantages. Here the applicants need to know that the earlier process of registration that was ” Udyog aadhar registration” has been replaced by the “Udyam registration” from 1 July 2021, to ease the registration process.