Learn about Udyam registration intricacies, from eligibility to MSME distinctions, and whether GST is mandatory for a comprehensive understanding
In India, now MSME registration is also known as Udyam registration. This process is completed on the online portal and on a self-declaration basis. Due to this, it becomes a straightforward process for newcomer entrepreneurs. Any partnership firm ( A firm with different partners are called a partnership firm) can do online Udyam registration at msme.e-registration.co.in.
Who Can Apply for MSME Registration?
Different business entities can do MSME registration or Udyam registration. In India, the MSME registration is done by proprietorships, Hindu Undivided Family, Partnership firm, One person Company, Limited Liability Partnership, Private limited the Company, Limited Company, Produces Company, any association of persons, co-operative societies, or any other undertaking. MSME registration offers multiple benefits for the small businesses under MSME or micro, small, and medium enterprises development act 2006. Thus, all the small businesses should register for MSME or Udyam registration after starting up to avail of some valuable benefits to their business.
What Are the Eligibility Criteria for MSME Registration?
Whether the business is micro, small, or medium, your business should qualify for the MSME registration. To qualify, the business should have an investment amount and annual turnover. The turnover should be the minimum threshold for every enterprise. The correct figures are given below:
- For Micro Business – If you want your business to qualify as a micro-enterprise for registration of MSME, the overall investment amount of the business should be less than Rs. 1 crore, and annual turnover should be less than Rs. 5 crores.
- For Small Enterprises – In the case of a small enterprise, to qualify for the MSME registration, the total amount of your business investment should be less than Rs. 10 crores, and annual turnover should be less than Rs. 50 crore.
- For Medium Enterprises The medium enterprises are the largest enterprises on the list. To qualify for MSME registration, the overall investment should be less than Rs. Fifty crores and annual turnover less than Rs. 250 crores.
After your business qualifies for any of the above categories, one can sign up for MSME registration without any hurdle.
Benefits of Udyam Registration for Partnership Firm
- Concession on electronic bills
- Allow participation in International trade
- Protection against the overdue payments
- It helps to get an online government tender
- Can avail the collateral-free loans from banks and financial institutions
- Helps to avail low-interest rates in bank loans.
- The companies that are registered as Udyam MSMEs will receive tariff subsidies.
- There are many reservation policies for the production or manufacturing market.
- CLCSS or Credit Related Capital Subsidy Scheme is now eligible for MSME or Udyam Registration.
- Quick registrations, permissions, and permits are obtained by Udyam registration.
- 15% import subsidy on buying fully automated machines on the bank loan.
How Can a Partnership Firm Do Udyam Registration?
After qualifying for the MSME Registration, Udyam registration is very easy. You need the following documents to fill out the form:
- Aadhaar Number – In the case of a partnership firm, the managing partner’s Aadhaar number is entered. The Aadhaar number should be 12 numbers.
- Name of Applicant – In this option, the name written on the aadhaar card is filled whose number is entered in the above option.
- Social Category – Now select the social category of the applicant among the given options.
- Types of Organisations – Choose the type of organization from the options given. These options will get printed on the MSME certificate.
- Name of the Business or Enterprise – Now fills up the name of the business or enterprise. This name will get printed on the MSME or Udyam certificate.
- Business Location or Plant – In this section, fill the location with the business address carefully.
- PAN Number – Fill in the PAN number of 10 digits of the business PAN card.
- Date of Incorporation or Registration – Select the date of commencement of the business.
- Mobile Number – Fill up the business or applicant’s mobile number. An OTP will be sent to this contact number.
- E-mail ID – Enter the E-mail id of the applicants.
- Upload the Aadhaar Card – The applicants need to attach or scan their aadhaar card front side copy.
- Upload PAN card – The applicants can scan a copy of their PAN card.
The Procedure of MSME Registration
The procedure of MSME Registration is completed in 4 steps, which are given below:-
- Fill up the application form for Udyam Registration
- Make an online payment of the registration fees
- The executive will process the application
- The applicant will receive the certificate in their Mail
What Is the Online Facility of Udyam Registration?
The MSME registration benefits small businesses to avail of exciting benefits for their business. These benefits are given below:
- The businesses can claim stamp duty and registration charges waiver and reduce acquisition costs.
- Small businesses can get an exemption of a 1% interest rate on Overdrafts.
- Reduction in electricity bills
- Exemption under direct tax laws
- Get interest rate subsidy on Bank loans.
- Avail subsidy of 50% on patent fees and trademarks.
- Registered MSME businesses can get exemptions under direct tax laws.
- Get the expenses of obtaining an ISO certificate.
- Obtaining licenses, registrations, and approvals becomes easy.
- The Company will get a 15% subsidy on importing fully automatic machines under a bank loan.
- Help you to get your business government tenders.
- More facilities to access the loan at low-interest rates.
Conclusion
An MSME or Udyam certificate will grant you hundreds of benefits and make things easier for your business. But it is very important to understand all the eligibility criteria and required documents to register for MSME. So if your business also falls under the eligibility criteria of MSME, then register your business today and avail some exclusive benefits of Udyam registration.
Frequently Asked Questions
Who is Not Eligible for Udyam Registration?
Certain entities, such as partnerships and limited liability partnerships, are not eligible for Udyam registration. Additionally, businesses without a valid Aadhaar number or those not engaged in manufacturing or production activities are excluded.
What is the Difference Between MSME and Udyam Registration?
MSME (Micro, Small, and Medium Enterprises) and Udyam registration essentially refer to the same process. 'Udyam' is the term used post the government's initiative to simplify and streamline the registration process for MSMEs, replacing the earlier nomenclature.
Is GST Mandatory for Udyam Registration?
While GST registration is not mandatory for Udyam registration, it is advisable for businesses to consider obtaining GST registration separately based on their turnover and business activities. Udyam registration focuses on MSME classification, while GST registration pertains to the Goods and Services Tax framework.
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