Legal Advice

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 registering, and why should you do it?

“What is Udyam Registration?” is a question that several start-ups have.

Udyam Registering, commonly known as MSME Authorization, is a regulatory registration that provides MSMEs with a unique Id Number and a recognition license, certifying them as micro/small/medium enterprises. The main goal of this launch was to bring numerous benefits to Indian MSME firms.

The main goal of this facility was to give a mechanism for the government to provide the most advantages to medium and small-scale firms and industries in India that are enrolled with MSME using their Aadhaar Number Identity.

The entity’s founder, manager, or operator must supply his or her Aadhar Number. Whether the business or entity is a sole proprietorship, a Partnership, a private limited company, or another, this is a necessity. It should have a letter of approval obtained through the MSME enrolment process.

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 qualify 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 are 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

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.

REGISTER AS MSME NOW

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 – 

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.”

Click the “Final Submit” button after entering the Pin received on your phone.

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 Enrolment 

  1. Registering makes it easier to accept public contracts.
  2. As a result of enrollment, borrowing becomes cheaper.
  3. There are several tax incentives available to Udyam.
  4. Permits and certifications are easy to acquire, depending on the industry.
  5. Enterprises listed are given priority for licencing and authentication.
  6. They offer low-cost loans with low-interest rates.
  7. There are numerous reductions and allowances available to assist you.

Conclusion

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

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