What is Udyam/MSME registration?
The Indian government provides micro, small, and medium-sized companies (MSMEs) functioning in the country with an electronic certificate known as Udyam Registration. It superseded the old Udyog Aadhaar Memorandum (UAM) registration process. While Udyam registration is optional, it gives significant benefits to MSMEs, making it advantageous to do so.
Udyam registration grants access to several government services and activities.
Banks prioritise sector financing.
The benefits include a prolonged Minimum Alternate Tax (MAT) credit period, cheaper bank loan interest rates, and easy integration with other government systems.
Udyam Registration Number.
Following successful registration, the corporation, identified as “Udyam” on the Udyam Registration site, will be granted a unique and permanent identifying number known as the “Udyam Registration Number.”
Udyam Registration Certificate
After completing the registration process, the business will be issued an e-certificate known as the “Udyam Registration Certificate.” This certificate is an official confirmation of their eligibility for government benefits and assistance.
Eligibility for MSME Registration Process
Udyam registration is available to enterprises that meet certain criteria, including those in the trading, manufacturing, and service industries. The qualifying criteria for Udyam registration are as follows:
Micro enterprises have investments in machinery, plants, or equipment that do not exceed Rs. 1 crore and annual sales of less than Rs. 5 crore.
Small Businesses: Investments in machinery, plant, or equipment are less than Rs. 10 crore, and annual revenue is less than Rs. 50 crore.
Medium enterprises invest no more than Rs. 50 crore in machinery, plant, or equipment, and their annual income does not exceed Rs. 250 crore.
- Who may apply for Udyam registration?
- Individuals looking to create a micro, small, or medium-sized business in India can apply for Udyam Registration. It pertains to a wide range of organisations, including:
- Proprietorship
- Hindu undivided families (HUF)
- Partnership Firms
- One-Person Companies (OPCs).
- Private Limited Companies, Limited Companies, Producer Companies, and Limited Liability Partnerships.
- Any group of persons
- Cooperative Societies
- Any other undertaking
Advantages of Udyam Registration.
Udyam Registration offers several appealing benefits to registered Micro, Small, and Medium-sized Enterprises (MSMEs). These advantages are critical in fostering their growth and development.
- Access to Government Plans: MSMEs must register with Udyam in order to participate in a variety of government plans and activities.
- Seamless Integration: The Udyam portal interacts seamlessly with other critical government systems.
- Priority Sector Credit: With Udyam registration, MSMEs may obtain priority sector credit from banks.
- Extended MAT Credit: MSMEs with Udyam registration can carry over Minimum Alternate Tax (MAT) credit for 15 years, instead of the previous 10.
- Lower Interest Rates: MSMEs can obtain bank loans at lower rates.
When Should I Apply For MSME/Udyam Registration?
While Udyam registration is optional and entirely up to the entrepreneur, most businesses should apply for MSME registration online as soon as they are founded. Entrepreneurs who register early may benefit from a range of government schemes.
Documents Required
To apply for Udyam registration, an entrepreneur must provide the following documents:
PAN Card Number: This is the firm’s Permanent Account Number (PAN).
Aadhaar Number: The individual’s Aadhaar card number, depending on the organisation.
GST Number: The company’s Goods and Services Tax (GST) identification number (if any).
How Do I Get Udyam Registration Online?
MSMEs can apply for Udyam registration online by completing these simple steps on the Udyam registration portal:
- Access the Udyam registration portal.
- Enter the Aadhaar number and Entrepreneur’s name, then choose ‘Validate & Generate OTP’.
- Enter the OTP sent to the mobile number connected with the Aadhaar card, and then choose the ‘Validate’ option.
- Visit the PAN verification page. Enter the Type of Organisation and the ‘PAN’* digits, then click the ‘Validate’ button.
- Fill out all of the required information on the Udyam registration application form.
- Enter the final OTP you received and submit the form. You will receive the Udyam e-registration certificate by email.
Renewal of Udyam Registration
Unlike other registrations, the Udyam Registration Number is permanent and does not require renewal. MSMEs are not required to renew their Udyam Registration after it has been acquired. This tool ensures a hassle-free experience for registered businesses.
Conclusion
The MSME, or Udyam Registration, process is crucial for micro, small, and medium-sized enterprises in India. MSMEs who get this registration will have access to a number of government benefits and support. The process is easy and may be completed online, making it accessible to all qualified firms. Registering as an MSME may help a business develop, expand, and compete in the market.
