AadhaarGSTLegal Advice

Document Required for Udyam Registration

In this article, we precisely mention the types of Udyam Registration available and then a list of documents that will be required to do the registration

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Registering your business on the Udyam portal is very important to gain all the benefits attached to the MSME sector. The government has made it easier for businesses to register themselves with the Udyam portal. 

Unlike the earlier processes, which required hefty documentation and lengthy procedure, the current scenario requires only minimal documents. In this article, we will read all you need to know about the documentation and the type of Udyam registration. 

Types of Udyam Registration

There are three categories of MSME registration based on certain business factors, such as investments and turnover. 

These are :

  1. Micro enterprises: Enterprises where investment < ₹1 crore and turnover < ₹5 crores.
  2. Small enterprises: Those whose investment < ₹10 crores and turnover < Rs 50 crore
  3. Medium enterprises: Those whose investment <Rs. 50 crore and yearly turnover < 250 crores.  

Suppose any enterprise surpasses the previous amount of investment and turnover. In that case, it will be moved to the next category of MSME. In order to categorise any business into a micro, small or medium enterprise, it is important to take into consideration the total investment and turnover of all the units registered under the same pan number. 

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To calculate a firm’s investment and the previous year’s income tax returns are considered. Suppose no ITR is available (which is the case in new enterprises). In that case, the self-declaration of the proprietor will be the basis for the calculation of an investment. 

While calculating the turnover of an enterprise, exports of goods and services will not be considered.  

Documents required for registration

In the list of documents that are required for Udyam registration online, the elements required are as follows-

  • Aadhaar card 
  • Pan card
  • Bank account details
  • Business address
  • Details of business activities 
  • Information of the investment (plant, equipment, machinery)
  • Information on the turnover 
  • Duplicates bill of sale and purchases 
  • Partnership deed (if any)
  • NIC code of 2 digits
  • Copies of bill and license of the machinery purchased
  • Details of the applicant such as mobile number, email address, etc. 
  • Certificate of disability (if any)
  • Miscellaneous information such as the number of employees, Social category, etc. 

In the form filled by the applicant, it is to be clearly stated if the firm has more than one office or production unit. Also, the details of all of them have to be filled in.

The social category of the applicant is also to be stated with the required certificate. They should clearly state if they want to register as a manufacturer, a service provider, or both. Also, it is asked from the applicant if they are willing to participate in the government-created and run Gem portal or not. 

Things to take care of before registration 

Below are some essential things you should keep in mind while doing Udyam registration. 

  • No fee is required for Udyam registration online.
  • You need an Aadhaar number for registration. In cases of ownership organisation, the aadhaar number of the owner will be required. In the case of a partnership, the aadhar number of the managing partner is required. While in the case of a HUF(Hindu entire family), the aadhar number of the ‘Karta’ is needed. 
  • If your industry is a pre-existing firm, you should attach your pan number and GST to automatically take your investments and turnover information from the government database.
  • You can file only one Udyam registration. Even if you are involved in multiple manufacturing or service-related firms, all will be included in one registration. 
  • The legal signatory’s GSTIN, PAN, and Aadhaar numbers would be required in a few cases. These cases include:
    • Limited partnership 
    • A trust 
    • A cooperative society 
  • Any person or firm with prior EM-II or UAM registration or any other certificate provided by the ministry of MSME still has to register with the Udyam registration.
  • Any applicant who performs activity such as miss representation or suppression of information would be granted punishment according to claws 27 of the MSME act.

Government schemes with benefits for MSMEs

You would wonder why it is so important for any new business in India to register with the government. We will now talk about the various government schemes, whose benefits you will be able to take only if you are registered with the government as an Udyam. 

  • Women entrepreneurship scheme: The government initiated this scheme to encourage women to start their businesses. The women who wish to do so are provided with the necessary help, counselling, and training by the government of India so that they can take good care of their business. 
  • Grievance monitoring system: This portal is created for the firms registered as Udyam in order to facilitate them by solving any kind of complaints and providing quick resolution. You need to be registered as an MSME to take advantage of this portal. 
  • Capital subsidy scheme: If you are registered in the Udyam portal. You can easily avail of loans from the government banks to replace your old and worn-out machinery and equipment with a new one. This facility helps you raise funds with a lot of ease and subsidy. 
  • Quality management standards: This government scheme was started to encourage healthy competition amongst different firms selling the same products and services. This ensures better quality goods and services. The government ranks the products made by them based on specific quality parameters.
  • Udyog Aadhaar memorandum scheme: This scheme makes it easy for any MSME registered with the government to provide loans, credit, and government subsidies. 
  • Zero defect, zero effect: If you produce goods or provide services of good quality (according to the standards set by the government) that are exported and are not returned to India, you are entitled to rebates and concessions for the goods you export. 

Therefore, you need to register with the government if you are an MSME to avail a plethora of benefits. With all the required documents at your disposal and all the necessary things in mind, you can easily apply to the portal online without visiting any government office.

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