The Udyam registration process varies from state to state in India. This blog will discuss the Udyam registration process in the state of Tamil Nadu
Udyam Registration, or the MSME registration in the Indian state of Tamil Nadu, is a certification awarded to all the micro, small-scale, and medium-sized enterprises enlisted under the MSME law. The key objectives of the Udyam registered enterprises operating within the boundaries of Tamil Nadu are listed below:
- To empower the micro, small-scale, and medium-sized firms on a broader aspect to curb the rising issues of poverty and unemployment.
- To protect the local small scale industries from economic harassment posed by industrial giants.
- To extend the facilities of different central and state schemes under a common umbrella for all small scale manufacturers and service providers.
What documents are required for Udyam Registration?
The detailed collection of required documents for submission varies concerning the nature of the registered business entity that wishes to secure Udyam policies in Tamil Nadu.
In Tamil Nadu, the proprietors who want to obtain the Udyam registration have to present their PAN card details, and Aadhar specifications as these two are the primary requisites. If the concerned entity is a partnership firm, then the PAN and Aadhar of the applying candidate are verified.
In the case of a private limited corporation and for all limited liability partnerships, the Udyam portal asks for the PAN card and Aadhar of the applicant. When the candidate intending to complete his registration does not have an official Aadhar, this unauthorised signatory first needs to issue his Aadhar card by visiting the closest enrolment centre. As the entity receives his Aadhar card, the Udyam registration method is set to be kicked off.
Who must avail of Udyam registration in Tamil Nadu?
In Tamil Nadu, every business is not recommended to complete the Udyam registration. The businesses we have enlisted below are categorised under micro, small-scale and medium-sized firms. They must register themselves as per the provisions laid down by Udyam, particularly for the manufacturing sector.
Enterprises that should register themselves:
| Category of business | Industrial sector |
| Micro businesses | Not exceeding more than ₹25 lakh financing in machinery and plants. |
| Small scale enterprises | Not exceeding more than ₹5 crores financing in machinery and plants. |
| Medium-sized enterprises | Not exceeding more than ₹10 crores financing in machinery and plants. |
What Information Has to Be Presented for Successful Udyam Registration?
The foremost necessity is the Aadhar card of the requesting entity. Apart from this document, many related papers need to be produced. We have listed them for you:
- Officially approved name of the applicant or entrepreneur as written in his Aadhar card. This nationality identity proof document should be connected with the applicant’s mobile number.
- A valid phone number has to be provided
- PAN card number (be it LLP/ Pvt./ company/ partner PAN ID)
- One primary E-mail address
- Gender
- A checkbox needs to be addressed asking if you are physically challenged or not
- Social caste has to be mentioned
- Enterprise’s business name
- Nature of entity
- Active address of the firm’s operational office
- Accurate date of business commencement
- Banking details of your enterprise or your personal/current bank account information. The point to be noted is that only the proprietor is eligible to add a savings bank account.
- A bank account number and IFSC code
- The bank’s branch has to be given
- Major activity is declared as manufacturing or service.
If you go for the option ‘manufacturing’, you need to select the subcategory. The same thing applies to service firms.
The NIC code has to be delivered. You need to mention the present number of employees deployed in operational, executive and managerial departments. The Udyam regulatory body even asks for the Income Tax returns file to scrutinise till date transactions. GSTIN has to be presented (if applicable). The location of the business must be indicated as either rural or urban.
Key Components of Udyam registration in Tamil Nadu
- No associated charges have been set for filing the Udyam application. Only you need to produce an Aadhar number during Udyam registration in Tamil Nadu as the KYC formalities are stated.
- The produced Aadhar card has to belong to the owner when the authority is dealing with an ownership firm; it shall belong to the managing partner when we consider partnership business. The Aadhar details of the Karta are desired for instances of a Hindu family.
- When the Ministry is dealing with a cooperative society/ limited partnership or a trust, ist GSTIN along with PAN and Aadhar details are offered by the official signatory or the applying business entity.
- In Tamil Nadu, when a firm is rightfully enlisted as a Udyam, any shortage of data for past years when PAN card was not there is restored based on the auto-disclosure principle.
- No companies are allowed to register multiple times under Udyam enlistment. Any activity that can be tagged as service or manufacturing or an amalgamation of both can be brought within Udyam.
- Those holding UAM or EM-II registration or any equivalent status furnished by the MSME council need to re-register themselves for Udyam.
- The entities that deliberately misrepresent or attempt to conceal the various auto-disclosed figures and data recorded in the Udyam database would be entitled to strict punishment as stated in Income Tax Act’s clause 27.
- The turnovers of various sectors will be revealed from the database automatically as the firms have provided their GST and PAN details. This generates optimum transparency.
Benefits of Udyam Registration
The foremost benefit is that businesses are assured of tax refund availability. Apart from this, enterprises can reap benefits of MSME by offering more affordable bank loans incurring cheaper interest rates. The interest rates come down much lower (around 1-1.5%) than regular borrowings.
Minimum Alternate Tax can now be paid over 15 prolonged years, contrary to the previous window of 10 years that was provided for credit payment to the small and medium industries.
Low-cost manufacturing plants are finding it easy to establish plants, appeal for patents etc., due to simpler credit availabilities. Unpaid charges can also be settled via a one-time payment option.
Conclusion
Udyam registration is a paperless procedure that involves zero processing fees. It is entirely based on self-declaration. The process is executed online, where the registrant needs to give his PAN, Aadhar and GST details. The firm’s turnover is automatically detected from the centralised databases.
No business owner is allowed to take advantage of Udyam registration by creating more than one account. The inclusion of GSTIN has been mandated since 1 April 2021.
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