Don’t let the registration process hold you back. Our simple approach streamlines the entire MSME Udyam registration process.
Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the Indian economy, significantly contributing to job creation and economic growth. In order to further assist them, the Government of India created the Udyam Registration portal in July 2020, replacing the previous Udyog Aadhar registration process. The goal was to make it easier for MSMEs to register and profit from various government programs.
If you own a small business and want to register on the Udyam portal, this comprehensive guide will help you understand the process, eligibility requirements, required paperwork, and benefits of registration.
Understanding Udyam Registration
Udyam Registration is an easy and voluntary registration process for MSMEs. The registration is completely online and provided with a charge, and the certificate is good for life. It is based on self-declared parameters including investment, turnover, and employment. Once registered, MSMEs can take use of several government perks such as credit facilities, subsidies, and other initiatives.
To qualify for Udyam Registration, a business must fulfill the following criteria:
For manufacturing and service-based businesses, the investment limit is as follows:
- Micro Enterprises: Up to Rs. 1 crore
- Small Enterprises: Up to Rs. 10 crores
- Medium Enterprises: Up to Rs. 50 crores
For manufacturing and service-based businesses, the turnover limit is as follows:
- Micro Enterprises: Up to Rs. 5 crores
- Small Enterprises: Up to Rs. 50 crores
- Medium Enterprises: Up to Rs. 250 crores
The Udyam registration is applicable for the following organizations:
- Hindu Undivided Family (HUF)
- Partnership firms
- One Person Company (OPC)
- Limited Liability Partnership (LLP)
- Private Limited Company
- Limited Company
Udyam Registration Process
The Udyam registration procedure is straightforward, and it may be conducted online using the official Udyam Registration portal. To register your business, follow these steps:
Step 1: Go to the Udyam Registration Portal.
Visit the Udyam Registration website at https://udyamregisteration.org/.
Step 2: Enter Business Information
Fill up the required fields with your company’s PAN and Aadhaar number. The Aadhaar number should belong to the business’s owner or authorized signatory.
Step 3: Enter Business Information
Enter your company’s information, such as its name, kind, address, and contact information. You must also enter your bank account information, including the IFSC code and account number.
Step 4: Select the Correct Classification
Choose the proper classification for your company depending on its investment, turnover, and personnel count.
Step 5: Declare Yourself
In the following classification, you must self-declare certain characteristics like as investment, turnover, and employment.
Step 6: Fill out the Application
Submit your application after validating all of the facts. You will be given a unique registration number that you can use in the future.
Documents Required for Registration with Udyam
The following documents are necessary for Udyam registration:
- Aadhaar card of the owner or authorized signatory
- PAN card of the business
- Proof of business address
- Bank account information
- Specifics about the primary business activity
- If the company is already in existence, the registration certificate of that company should be used.
The Advantages of Udyam Registration
MSMEs registered with Udyam are eligible for a variety of government benefits, including:
Loans with No Collateral
Businesses registered with Udyam are eligible for collateral-free loans through several government initiatives such as the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which gives loans up to Rs. 2 crores.
Subsidies for interest
The government offers interest subsidies on loans carried out by Udyam-registered MSMEs. This subsidy is available through programs such as the Prime Minister’s Employment Generation Programme (PMEGP).
Exemptions from Income Tax
MSMEs registered with Udyam are eligible for income tax exemptions for three years beginning with the year of incorporation.
Favorite Treatment in Government Tenders
Businesses that are registered with Udyam receive preferential consideration in government tenders, with a 25% reservation for MSMEs in government procurement.
Market Access and International Trade Fairs
Under different government programs, MSMEs registered with Udyam can participate in international trade fairs and exhibitions.
Support for Technology Upgrades
MSMEs registered with Udyam can receive technological upgradation assistance through several government programs such as the Credit Linked Capital Subsidy Scheme (CLCSS).
Read more about the Benefits of Udyam Registration
Udyam Registration is a game changer for MSMEs in India, allowing them to do business more easily and gain access to government initiatives and perks. MSMEs can register on the Udyam portal and take advantage of the numerous government incentives by following the simple registration process explained above. The government’s plan to foster the expansion of MSMEs is a fantastic one, and entrepreneurs should take advantage of it to grow their businesses and contribute to the nation’s economic prosperity.