The goal of introducing Udyam registration was to simplify the procedure that company owners had to go through in order to register their company as a Micro Small Medium Enterprise, or MSME.
Prior to the introduction of Udyam Registration, the procedure was a time-consuming and laborious bureaucratic process that necessitated the management of a large amount of paperwork. However, since the introduction of Udyam registration, times have changed and for medium, small, and micro-enterprises, things have improved to some extent.
If you own a medium, small, or micro-enterprise and haven’t registered it yet, you should know that registering your MSME through Udyam Registration entitles you to a slew of benefits.
What is Udyam Registration?
What is Udyam Registration? This is the biggest question on the minds of many new entrepreneurs. If you have had the same question, you’ve found the right place.
Udyam Registration, also known as MSME Registration, is a government-issued identification number that comes with a certificate of recognition. This is for the purposes of certifying smaller businesses and enterprises.
The primary goal of presenting this facility was to give the government a way to give the most benefits to Indian medium and small-scale companies and industries that are registered through MSME and then use their Aadhar Card Number.
Who is eligible to register for Udyam?
Let’s get some things straight! Organizations that are eligible for Udyam Registration are either engaged in the manufacturing, production, processing, or preservation of goods or in the provision of services. In other words, vendors who buy, sell, import, or export goods are ineligible to apply for Udyam Registration.
However, in order to be identified as a medium, small, or micro-enterprise and obtain MSME registration, an organization must meet a list of conditions.
According to the most recent notification,
Types of Enterprises (Both for the manufacturing and service sectors)
Investment of up to Rs 1 crore and a turnover of up to Rs 5 crore
Up to Rs 10 crore in investment and up to Rs 50 crore in income
Investments of up to Rs 50 crore and a turnover of up to Rs 250 crore
Udyam Registration Process
The Udyam registration process, as well as the form filling method, are both simple. Today’s system has been revitalized, and it seeks out far less data than the previous system. It’s important to note that MSME registration is free, and the website doesn’t charge an official fee for issuing certificates.
Things have gotten a lot easier and more efficient. A step-by-step guide to obtaining Udyam Registration under MSME can be found here.
Step 1: Visit the Udyam Registration Portal
The first step in registering your business online is to go to the Udyam Registration Portal.
Step 2: Enter Your Personal Information
Your name and your 12-digit unique Aadhar number will be the first details you’ll need to enter. Select “Validate & Generate OTP” from the drop-down menu. On your registered mobile number, you will receive an OTP. Enter the one-time password.
Aadhaar number of the proprietor in the case of a proprietorship firm; of the managing partner in the case of a partnership firm; of a Registered proprietor in the case of a Hindu Undivided Family (HUF); of signatory in the case of companies or a Public Limited Partnership or a Collaborative Society or a Society or a Trust will be needed for Udyam Registration for New Companies.
Step 3: Verification of PAN
Enter your PAN number and click “Validate” after selecting the type of business you want to start. Confirmation of the PAN is carried out.
The authorized signatory of a Company / LLP / Cooperative Society / Society / Trust must provide the Company / LLP / Cooperative Society / Society / Trust’s GSTIN and PAN, as well as his Aadhar number.
Step 4: Filling in Correspondence Information
The company’s/enterprise’s/complete entity’s postal address is the next piece of information you’ll provide after filling in all of the above details. The district, pin code, state, email address, and mobile number of your business are also included.
Step 5: Fill in the Bank Information
You’ll need to enter both your company’s active bank account number and the IFSC code for the branch in question. You can try looking up the IFSC code for the branch in an inquiry on the bank’s website if you don’t know it.
Step 6: Information About the Company
The mainstream activity of your business must be listed under “services” or “manufacturing.” The total number of staff, as well as the National Business Classification(NIC) Code for Activities, must be provided.
The final step is to enter the actual amount you’ve decided to invest in your machine or equipment after you’ve filled in all of the details (in lakhs).
Step 7: Accept the Declaration and choose the District Industry Center.
You will select the district industry center from the provided drop-down list in the final step of this process. After that, you must accept the declaration by clicking on “Submit and Get Final OTP.”
Enter the OTP that was sent to your phone and click the “Final Submit” button.
You will be given a registration number once you click on the ‘Submit and Get Final OTP’ button. You will receive an E-registration document on your e-mail id once the government has verified all of your information.
Requirements for Udyam Registration Documents
- The MSME registration process is entirely electronic, with no paper involved, and is based on self-declaration.
- When registering an MSME, there are no requirements for documents or proof.
- Only the Adhaar Number will suffice for registration.
- Data on PAN and GST-related business investment and turnover will be automatically recovered from government records.
- A PAN and a GST number will be required starting April 1, 2021.
THE BENEFITS OF REGISTERING AS AN UDYAM
- After registering a business and obtaining Udyam Registration Benefits, you will be able to benefit from a variety of advantages. The best part about obtaining Udyam Registration is that it is a straightforward procedure that does not necessitate the completion of any paperwork. Here are a few of the most significant benefits:
- Registration with Udyam makes it easier to obtain government contracts.
- Because the interest rate is so low, bank loans become more affordable as a result of the Udyam (Lower interest rates of up to 1.5 percent compared to traditional loans).
- A number of tax breaks are available to Udyam.
- Obtaining permits, approval processes, and registrations become simple, regardless of the field of business.
Udyam registration is the best place to register for proprietors, entrepreneurs, and business startups to get classified under MSMEs after registration anyone can enjoy all the benefits offered by the ministry of MSME and special allotment in government tender. They can also get the various types of subsidies and the low-interest rates which is offered by banks. So get registered in udyam registration to build your own name in the business field.