Learn about the benefits of Udyam registration for MSMEs and the documents required to register their businesses on the Udyam portal.
Udyam registration is a general certification that allows micro, small, and medium enterprises to register themselves with the government. This registration provides the MSMEwith a commendation certificate and a unique identity number.
Eligibility
The Eligibility criteria for Udyam registration is divided into three main aspects, and they are enterprise type, annual turnover, and investment. Based on these factors the MSME is eligibility is analysed. As per law
- MSMEs must strictly be micro, small, or medium enterprises
- The benefits vary as per the annual turnover of the MSMEs. Micro enterprises with turnover of up to ₹5 crores are eligible for registration. Similarly, small enterprises with turnover in the range of ₹5 to ₹75 crores and medium enterprises with upto ₹250 crores annual turnover are eligible for Udyam registration
- Investment, too, is a criterion. Micro-enterprises must not have an investment of more than ₹1 crore to be eligible for the benefits of Udyam registration. Small enterprises must not exceed ₹10 crores, and medium enterprises ₹50 crores in investments.
Benefits
- Banks give collateral-free loans
- Easy access to the registrations, approvals, and licenses
- International trade receives special consideration
- Concession on various bills, such as electricity bills
- Credit Linked Capital Subsidy Scheme is validated by the Udyam registered organisations
- Reimbursement of ISO certification fees
- Protection against delayed payments or supplied services
- Subsidy and fewer interest rates offered on bank loans
- Different reservation policies for production or manufacturing units
- Exemption of direct tax
- Subsidy on credit rating and NSIC performances fees
- Patent and barcode subsidies
Documents Needed
The necessary documentation for the registration of MSMEs is as follows:
- PAN card of the enterprise
- Entrepreneur’s Aadhaar card
- Mobile number
- Fax number
- Email address
- Date of the Business commencement
- GST certificate
- Copy of passbook
- List of male and female employees
- Type of business
- Latest auditing details or financial statement of the business
- Entrepreneur’s social category
- Partnership deed, if any
- Articles of Association (AOA)
- Memorandum of Association (MOA)
- Company registered documents
Steps to Register as MSME for Udyam Registration
If you have not yet registered your enterprise as an MSME, you can follow the below steps:
- Visit the Udyam Registration website
- Click the ‘For new Entrepreneurs who are not registered yet as MSME’ option
- Enter the Aadhaar number and enter the OTP received on your mobile number
- Click on the validate button to successfully validate the Aadhaar number
- Verify the PAN card
- Enter the enterprise type and PAN number to validate your PAN Card with MSME
- File the form of MSME registration by filling in all the necessary details such as date of commencement of organisation, email address, phone number, bank details, the amount invested
- Once you file the form, click on ‘Agree on terms and policies‘ and submit the form. Next, you will get the OTP, so enter that OTP and submit the form.
- Now you will receive the e-registration certificate on your mail ID.
Steps to Check Validity of Udyam Registration
- Visit the MSME website
- Enter the Reference or 12 digits Udyam registration number
- Click on the valid verification code by entering the Captcha image
- Remember, the verification code is case sensitive, so enter it correctly
- Now, click on ‘verify‘
- All the details will be presented on the screen.
Conclusion
Entrepreneurs are setting up various MSMEs in India. Therefore, these newly growing enterprises can benefit from this initiative. However, the total investment done in the form of fixed assets will be shown by the last year’s income tax return of the enterprise. After the completion of this registration process, an e-certificate is issued. So, if your enterprise has not been registered yet with Udyam registration get it done today itself through Vakilsearch and start enjoying its benefits.
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