Udyam Registration

Udyam - Overview

Micro, small, and medium-sized enterprises (MSMEs) play a vital role in India's GDP, employing over 110 million people. Despite this, they encounter growth hurdles. To assist them, the Indian government launched a new classification on 13 May 2020, designating all MSMEs as 'Udyam' and making 'Udyam Registration' mandatory from 1 July 2020, to offer support and recognition.

Udyam Registration, initiated by the Ministry of Micro, Small, and Medium Enterprises, aims to categorise Indian MSMEs and provide them with rightful benefits. The registration process ensures seamless integration with diverse government databases, including PAN, GST, and IT.

Application Form for Udyam Registration Certificate

It is an online process that requires specific personal and business details, potential fees, and adherence to procedural guidelines. Upon successful submission and approval, the certificate is issued, enabling the benefits allocated to small and medium-sized enterprises in India.

• Online Portal Access
• Aadhaar Number Requirement
• Business Information Submission
• Industry Classification
• Investment and Employee Data
• Document Upload
• Application Fees
• Confirmation Process
• Certificate Issuance

Important Instruction to Fill the Form

• Applicant's Full Name: Enter the name of the applicant as it appears on the Aadhaar Card.
• Mobile Number: Provide the accurate mobile number of the applicant.
• Email Address: Enter the correct email address of the applicant.
• GSTIN Number: Indicate whether you possess a GSTIN number. If yes, provide the correct GSTIN number.
• Gender Selection: Choose the appropriate gender from the provided options.

• Business/Enterprise Name: Fill in the name of the business/enterprise as you want it to appear on the MSME Certificate.
• Organisation Type: Select the suitable organisation type from the given choices for the MSME Certificate.
• Office Address: Please provide the complete office address.
• Main Business Activity: Choose the primary business activity of the enterprise from the provided options.

Benefits of Udyam Registration

Udyam Registration is an online registration process for micro, small, and medium enterprises (MSMEs) in India. It is a mandatory process for MSMEs that want to avail of government benefits and subsidies. The registration process is simple and can be completed online in a few minutes.

• Easy access to loans and credit: Udyam-registered MSMEs can avail of collateral-free loans and credit facilities from banks and other financial institutions.
• Government subsidies and schemes: Udyam-registered MSMEs are eligible for various government subsidies and schemes, such as the Credit Linked Capital Subsidy Scheme (CLCSS) and the Interest Subsidy Scheme for MSMEs.
• Tax benefits: Udyam-registered MSMEs can avail of various tax benefits, such as income tax exemptions and deductions.
• Priority in government procurement: Udyam-registered MSMEs get priority in government procurement tenders.
• Easy access to industrial licenses and approvals: Udyam-registered MSMEs can easily obtain industrial licenses and approvals from the government.
• Reimbursement of ISO certification fees: Udyam-registered MSMEs can get reimbursement of ISO certification fees.
• Protection against delayed payments: Udyam-registered MSMEs are protected against delayed payments from customers.
• Free online courses and training: Udyam-registered MSMEs can access free online courses and training programs on various business-related topics.
• Access to market linkages and export opportunities: Udyam-registered MSMEs can avail of market linkages and export opportunities through various government initiatives.
• Increased credibility: Udyam Registration enhances the credibility of MSMEs among potential investors, partners, and customers.
• Improved brand image: Udyam Registration helps MSMEs project a professional image and establish themselves as credible businesses.
• Simplified compliance: Udyam Registration simplifies compliance requirements for MSMEs, making it easier for them to operate legally.
• Access to government forums and networks: Udyam-registered MSMEs can participate in government forums and networks to exchange ideas, collaborate with other businesses, and explore new opportunities.
• Entrepreneurial support and handholding: Udyam-registered MSMEs can avail of entrepreneurial support and handholding services from government agencies and incubation centres.

Documents Required for Udyam Registration Online

Here are the documents and details that are typically required the registration:

• Aadhaar Number: The unique 12-digit Aadhaar number of the individual applicant or authorised signatory is essential.
• PAN Card: The Permanent Account Number (PAN) of the business or individual may be required in some cases.
• Business Information: Details about the business including its name, address, type of organisation, and contact details.
• Bank Account Details: Information related to the bank account of the business, including the bank account number and IFSC code.
• Investment Details: Information regarding the total investment in the business, including machinery, equipment, and other capital assets.
• Industry Classification: Specific details related to the industry, such as the main line of business and sector.
• Employee Information: The total number of people employed by the business.
• Other Supporting Documents (if applicable): Depending on the nature and specific requirements of the business, additional documents might be required. This could include licenses, certifications, or other proofs that validate the existence and operation of the business.
• Email and Mobile Number: A valid email address and mobile number for receiving confirmation and communication.

Udyam Registration for Existing MSME Businesses / Enterprises

For existing MSME (Micro, Small, and Medium Enterprises) businesses in India is a transition from the older registration system to a new, streamlined process. This online registration requires the Aadhaar Number, PAN Card, existing MSME registration details, and other specific business information. The transition ensures that existing MSMEs align with the new regulatory framework, enabling them to benefit from special preferences in government tenders, collateral-free bank loans, tax and tariff subsidies, and various other perks. Support and guidance are provided through the official portal to facilitate a smooth transition. Existing MSMEs must adhere to possible deadlines for this transition to avoid losing these benefits and to comply with the updated regulations, fostering continued growth and alignment with government policies.

How to Register MSME Using Udyam Registration Portal?

• Visit the official Udyam Portal.
• Click on 'Udyam Registration' for new users or 'Re-Register' for existing MSMEs.
• Input the 12-digit Aadhaar number and validate it.
• Fill in personal and business details, including name, type, address, and investment.
• Select the appropriate industry code.
• Provide bank account details and attach any required documents.
• Review all details for accuracy and accept the declaration.
• Click on 'Submit' to complete the application.
• Receive the Registration Number (URN) and e-certificate via email.
• Print or save the Registration Certificate.

By following these simplified steps, businesses can register as an MSME through the Registration Portal and access the associated benefits.

Turnover Criteria for Micro, Small and Medium Enterprises

To be eligible for Udyam registration, your enterprise must meet the following criteria:

• Microenterprise: Investment in plant and machinery or equipment does not exceed one crore rupees.
• Small enterprise: Investment in plant and machinery or equipment does not exceed ten crore rupees.
• Medium enterprise: Investment in plant and machinery or equipment does not exceed fifty crore rupees.

Microenterprise: Turnover does not exceed five crore rupees.|Small enterprise: Turnover does not exceed fifty crore rupees.|Medium enterprise: Turnover does not exceed two hundred and fifty crore rupees.

How Can We Help You - Why Vakilsearch?

Vakilsearch is a prominent platform offering legal and professional services, including Udyam assistance in India. By choosing Vakilsearch, businesses can benefit from expert legal guidance, ensuring a smooth and compliant registration process. Their online platform offers efficiency and convenience, with dedicated professionals handling documents accurately to minimise errors. Vakilsearch provides end-to-end support, coupled with attentive customer service for personalised assistance. Their wide array of additional legal services, trusted reputation, and commitment to customer satisfaction make Vakilsearch an appealing choice for businesses seeking a seamless and reliable Registration experience.

FAQs on Udyam Registration