Udyam MSME Registration and Its Benefits

Read this blog to learn more about Udyam MSME registration and its benefits in India.

According to the Department of Micro, Small and Medium Enterprises (MSME) announcement, Udyam Registration is the new way of doing things that will replace UDYOG AADHAAR as of July 1, 2020.

What is Udyam Registration/MSME Registration?

Have you ever dreamt of taking your small business to the next level?  In India, Udyam MSME Registration can be your key to unlocking a treasure trove of benefits designed to empower Micro, Small and Medium Enterprises (MSMEs).

• What is Udyam Registration?

Udyam Registration is a digital certificate issued by the Indian government. It serves as official recognition of your business as an MSME.  This government initiative replaced the older Udyog Aadhaar Memorandum (UAM) process, making registration faster and simpler.

• Why Register Your MSME?

While Udyam MSME registration isn’t mandatory, it’s a strategic move for any ambitious entrepreneur.  Here’s the exciting part: obtaining Udyam registration unlocks a doorway to a wide range of government programs and incentives specifically designed to support MSME growth.

Udyog Aadhar for MSME

1. The Ministry of MSME (Micro, Small & Medium Enterprises) introduced a game-changer for Indian businesses with the launch of Udyog Aadhaar in 2015. This initiative aimed to simplify the registration process for MSMEs, making it easier for them to gain formal recognition and access the benefits that come with it.
2. Before Udyog Aadhaar, obtaining MSME registration involved a cumbersome process with multiple forms – Entrepreneur Memorandum I (EM-I) and Entrepreneur Memorandum II (EM-II). Udyog Aadhaar replaced this with a single, streamlined approach.
3. Gone are the days of extensive paperwork! Udyog Aadhaar registration utilises a self-declaration format. This means MSME owners themselves certify their business existence, bank details, owner/promoter Aadhaar numbers, and other key information. This not only reduces administrative burden but also empowers business owners.
4. By submitting the simplified Udyog Aadhaar form online, your MSME receives a unique identifier – the Udyog Aadhaar number. This number serves as official recognition of your business as an SSI (Small Scale Industry) or MSME.

Who is Eligible to Register for Udyam?

• Let’s set the record straight! The companies that are eligible for Udyam Enrolment are either engaged in manufacturing, processing, producing, or storing commodities or in the company which provides services. 
• Moreover, you should be aware that a business must meet a list of conditions in order to be categorized as a medium, small, or micro-enterprise and receive MSME enrolment.

According to the current announcement, the following categories of businesses eligibility for Udyam Registration: 

1. Micro Firms – with an annual turnover of 5 crore and Investments up to 1 crore.
2. Small Firms – with an annual turnover of 5 crore – 75 Crore and investments up to 10 Crore.
3. Medium Firms – with an annual turnover of 25 Crore – 250 crore and investments up to 50 crores.

Documents Required for Udyam MSME Registration 

• Permanent Account Number
• GST Certification 
• Aadhaar Copy of Entrepreneurs 
• Societal Category 
• Phone No. 
• E-mail Information
• Date of Certificate of Incorporation
• Bank A/c No and IFSC Number
• Employment Count
• Latest Audited Accounts Statements 
• Nature of Business

Benefits Offered to Udyam Registered Entity:

Taking your MSME to the next level just got easier with Udyam Registration! This free and online process opens doors to a wide range of advantages that can fuel your business growth. Here’s a glimpse of the exciting benefits that await you:

Financial Edge:

• Effortless Loans: Udyam registration makes your MSME eligible for priority sector lending from banks. This translates to easier access to loans at attractive interest rates, often with relaxed collateral requirements.
• Reduced Interest Burden: Enjoy a welcome discount of up to 1% on interest rates for loans availed from banks and financial institutions.
• Subsidy Savvy: Government programs offer industrial promotion subsidies to registered MSMEs, helping you spread brand awareness and reach new markets.

Boosting Business Operations:

• Faster Approvals: Streamline your business operations with simplified procedures for obtaining licenses, permits, and registrations.
• Global Recognition: Explore international trade opportunities with special considerations given to Udyam registered MSMEs.
• Standardisation Support: Get reimbursed for a portion of the costs associated with acquiring ISO 9000/ISO 14001 certifications, a mark of quality that can enhance customer trust.

Government Procurement Powerhouse:

• Tender Advantage: Gain a competitive edge when bidding for government tenders. Udyam registration connects your MSME directly to various government e-marketplace portals, increasing your visibility and procurement opportunities.
• Faster Payments: The government empowers Udyam registered MSMEs to levy interest on delayed payments from other companies, ensuring you receive your dues on time.

Tax Benefits and More:

• Patent Perks: Registered MSMEs can avail up to a 50% subsidy on patent registration fees, protecting your innovative ideas and processes.
• Tax Time Savings: Benefit from exemptions under specific direct tax laws, simplifying your tax compliance procedures.
• Extended Tax Credits: Udyam registered MSMEs enjoy a longer (15-year) window to utilise Minimum Alternate Tax (MAT) credits, compared to the standard 10-year period.

Additional Incentives:

• Barcode Registration: Reduce costs associated with barcode registration to streamline inventory management.
• Performance Fee Subsidy: Benefit from a subsidy on NSIC performance fees and credit rating charges.

Udyam registration goes beyond just a formality. It’s a strategic move that unlocks a treasure trove of benefits designed to empower your MSME and propel it towards success. So, register today and unlock the full potential of your business!

In the event of a discrepancy or complaint, what is the procedure?

• In the event of a disagreement or dispute, the General Manager of the respective District Industrial Centre will conduct an investigation to check the facts of the Udyam Enrolment filed by the firm.
• After that, forward the matter to the concerned State Government Board member, Superintendent, or Industry Director, who, after issuing a notice to the enterprise and allowing it to present its case, may amend the details or strongly suggest cancellation of the Udyam Certification to the Ministry of Micro, Small, and Medium Businesses, Central government.

Stages of Udyam Enrolment

• The Udyam Enrolment procedure is simple, as is the form completion procedure. Today’s system has been revitalised, and it seeks far less data than the previous method. It’s vital to know that MSME licensing is free, and the portal doesn’t collect an authorized fee for producing a certification.
• Things are much easier and more efficient today. Here is a step-by-step process to obtaining Udyam Registration under MSME

Stage 1, go to the official website 

The official Udyam Registration portal will be your first stop for having your business online licensed. Select the option “For start-ups who have not yet registered as an MSME.”

Stage 2, Fill in your personal details

• Your name and your unique Aadhar number will be the first details you’ll need to provide. “Verify & Generate Pin” should be selected. Your enrolled mobile number will receive a Pin. Please enter the Pin.
• 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 Karta in the case of a Hindu Undivided Family (HUF); of duly signed in the case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust will be required for Udyam Registration for New Enterprises.

Stage 3, PAN Approval 

• Select the type of business, then enter your PAN number and verify. Verification of the PAN takes place.
• The authorised signatory of a Company or LLP or Cooperative Society or Society or GST Registration and PAN, as well as his Identification number.

Stage 4, Filling up Correspondence Relevant data 

After completing out all of the aforesaid information, the next bit of information you’ll need to submit is the company’s or enterprise’s or entire entity’s postal address. Your company’s area, postal code, location, email address, and phone number are also included.

Stage 5, Fill in the Bank Account information

You’ll need to input the active bank account number for your company as well as the IFSC code for the bank.  If you don’t know the IFSC code for the branch in question, you can get it on the webpage.

Stage 6, Business Information

• You must specify your company’s mainline operation from the “services” or “industrial production” categories. For Activities, you must give the total number of people who are employed and the National Industry Classification (NIC) Codes.
• After you’ve filled out all of the details, the last step is to enter the actual amount you’ve invested in your machinery or plant (in lakh).

Stage 7, Accept the Declaration and Choose the District Industry Centre – 

1. You will select the district industry centre from the offered drop-down list in the final phase of this process. After that, you must approve the declaration and then click “Submit and Get Final Pin.”
2. Click the “Final Submit” button after entering the Pin received on your phone.
3. You will obtain a registration number after clicking ‘Submit and Get Final Pin.’ You will receive an E-registration document on your e-mail id once the government has confirmed all of your information.

Benefits of Udyam Registration:

• Financial Edge: Enjoy easier access to loans at attractive interest rates and explore government subsidies to fuel your business expansion.
• Simplified Processes: Streamline operations with simplified procedures for obtaining licenses, permits, and registrations.
• Government Procurement Powerhouse: Gain a competitive edge when bidding for government tenders and ensure timely payments for your services.
• Tax Advantages: Benefit from exemptions under specific tax laws and extended credit utilisation windows.
• Global Recognition: Explore international trade opportunities with special considerations given to Udyam registered MSMEs.

The Registration Advantage:

The Udyam registration process is refreshingly straightforward.  It relies entirely on self-declaration, eliminating the need to submit piles of paperwork or spend hours navigating complex procedures. All you need is your Aadhaar card to register online and receive your unique Udyam registration number.

Who Can Apply for Udyam Registration?

The beauty of Udyam Registration lies in its inclusivity. It opens its doors to a wide range of aspiring and existing business owners in India. So, if you’re ready to take your entrepreneurial dreams to the next level and qualify as an MSME, Udyam Registration can be your game-changer.

Is Your Business a Fit?

Here’s the good news: Udyam Registration welcomes various business structures, as long as they fall within the MSME classification based on investment and turnover criteria. This means a diverse range of entities can benefit from this program:

• Sole Proprietorships: Are you a one-person powerhouse running your own show? Udyam Registration is for you!
• Family-run Businesses: For those operating a Hindu Undivided Family (HUF) business, Udyam Registration can unlock valuable advantages.
• Partnerships: Whether you’ve joined forces with a like-minded partner or have a full-fledged Partnership Firm, Udyam Registration extends its benefits to you.
• Modern Business Structures: One-Person Companies (OPCs), Private Limited Companies, Limited Companies, and Producer Companies can all leverage the power of Udyam Registration.
• Alternative Business Models: Limited Liability Partnerships (LLPs) and any association of individuals working together can also reap the rewards of Udyam Registration.
• Community and Cooperative ventures: Cooperative societies and other undertakings can benefit from the government support offered through Udyam Registration.

How to Get Udyam Registration Online?

Ready to unlock the potential of your MSME with Udyam Registration? The process is surprisingly simple and can be completed entirely online! Here’s your roadmap to securing your Udyam MSME Registration:

• Chart Your Course: Head straight to the Udyam registration portal – it’s your one-stop shop for getting started.
• Identify Yourself:  On the homepage, find the option for ‘New Entrepreneurs’ (those who haven’t registered as MSME yet or have an old EM-II registration).
• Verify Your Aadhaar:  Enter your Aadhaar number and entrepreneur name.  The system will then send a one-time password (OTP) to the mobile number linked to your Aadhaar.  Once you receive and enter the OTP, your Aadhaar will be validated.
• Match Your PAN:  Proceed to the PAN verification page.  Fill in your organisation type, PAN number, and indicate whether you’ve filed your previous year’s Income Tax Return (ITR) and have a GSTIN (Goods and Services Tax Identification Number) if applicable.
• Fill Up Your MSME Profile:  The Udyam MSME Registration form will now appear.  This is where you’ll provide key details about your business, like your name, mobile number, enterprise name, location, address, business status, bank details, primary activity, industry classification code (NIC code), and number of employees.
• Investment & Turnover Details:  After filling out your basic information, provide details on your investment in plant and machinery and annual turnover.  Don’t forget to select the declaration checkbox.
• Finalise Your Registration:  Enter the final OTP received on your mobile number and submit the form.  Congratulations!  You’ll receive your Udyam e-registration certificate directly to your email.

With these simple steps, you’ve successfully navigated the Udyam registration process and unlocked a world of benefits for your MSME.  Now, get ready to watch your business thrive with the support of the government!

Udyam registration of New Enterprise –  Udyam Registration Portal

Are you a budding entrepreneur with dreams of establishing your own MSME?  The Udyam MSME Registration Portal is here to make your registration process a breeze!  Here’s how to navigate this user-friendly platform and secure your Udyam registration:

• Ready to Join the MSME Family?

If you’re a brand new enterprise eager to become an MSME, the Udyam MSME Registration Portal is your official gateway.  This online system allows you to register completely online, eliminating the need for paperwork or in-person visits.

• Self-Declaration Makes it Simple:

The Udyam MSME Registration process is based entirely on self-declaration.  There’s no need to gather piles of documents or spend hours filling out complex forms.  Simply provide accurate information about your business.

The Aadhaar Advantage:

To register on the Udyam MSME Registration Portal, you’ll need a valid Aadhaar number.  This unique identification number serves as your key to accessing the online system.  Here’s a quick guide on whose Aadhaar number is required based on your business structure:

• Proprietorship: The proprietor’s Aadhaar number is required.
• Partnership: The managing partner’s Aadhaar number is needed.
• Hindu Undivided Family (HUF): The Karta’s Aadhaar number is necessary.
• Company/Co-operative Society/Trust/LLP: The authorised signatory’s Aadhaar number is required.

Seamless Integration for a Hassle-Free Process:

The good news?  The MSME online system is fully integrated with Income Tax and GSTIN (Goods and Services Tax Identification Number) databases.  This means the portal can automatically retrieve information about your investment and turnover, saving you time and effort.

• Your Unique MSME Identity:

Upon successful registration, your enterprise will be assigned a unique ‘Udyam MSME Registration Number’.  This permanent identifier signifies your official recognition as an MSME.  You’ll also receive an electronic ‘Udyam Registration Certificate’ as proof of your registration.

• One Registration, Multiple Activities:

Here’s another bonus!  While you can only file for one Udyam MSME registration, there’s no limitation on the number of business activities you can register under it.  Whether you’re involved in manufacturing, services, or both, you can add them all to your single Udyam registration.

• Taking the First Step Towards Growth:

The Udyam Registration Portal is designed to empower new MSMEs like yours. With its simple online process and self-declaration approach, registering your business has never been easier.  So, head over to the Udyam MSME Registration Portal today and embark on your exciting entrepreneurial journey!

Differences Between Udyog Aadhaar and Udyam registration

Udyog Aadhaar and Udyam MSME Registration might sound similar, but they represent distinct chapters in MSME registration in India. Let’s explore the key differences:

• Registration Evolution:

Udyog Aadhaar, introduced in 2015, aimed to simplify MSME registration. However, in July 2020, the system evolved into Udyam MSME Registration, offering a more robust and integrated approach.

• Streamlined Yet Verified:

Udyog Aadhaar registration relied solely on the applicant’s Aadhaar card and PAN number for self-certification based on older MSME criteria. Udyam MSME Registration, on the other hand, maintains the Aadhaar requirement but goes a step further. It verifies the information provided against data from the Income Tax portal and GST departments, ensuring greater accuracy.

• Enhanced Connectivity:

Udyam MSME Registration boasts seamless integration with other MSME portals, opening doors to various government schemes and programs. Udyog Aadhaar, however, lacked this connectivity, limiting its reach.

• Form Focus:

Udyog Aadhaar registration utilised a shorter form, focusing primarily on basic business details. In contrast, Udyam Registration employs a more comprehensive form, gathering information from the Income Tax and GST departments for a more complete picture of your MSME.

• Multiple vs. Single Registration:

One key difference lies in the number of registrations allowed. Udyog Aadhaar permitted multiple registrations under different company names with a single Aadhaar card. Udyam MSME Registration Registration, however, restricts each Aadhaar card holder to a single registration.

• Moving Forward:

Udyam Registration represents a significant upgrade, offering a more robust and verified registration process for MSMEs. While Udyog Aadhaar served its purpose, Udyam Registration paves the way for a more integrated and efficient MSME ecosystem in India.

Conclusion

Keep the above-listed aspects in mind while applying for Udyam registration in India.

Other Related Articles

• Apply for Udyam Registration
• Request for AADHAAR Validation Letter
• MSME Udyam Registration Web-Portal