Udyam Registration Online for MSMEs

To boost the promising small and medium enterprises (MSME), the Indian government has put in motion the Udyam Registration portal. It was launched on 1st July, 2020. This MSME Udyam Registration portal is dedicated to MSME entrepreneurs. Entrepreneurs can register their enterprises and reap the benefits offered by the government to this industry.

Did you know?

As per the 2021-22 economic survey, more than 6600000 companies have signed up on the Udyam portal as of 17th January, 2022. Out of the registered enterprises, 310000+ are small, 34000+ are medium, and 6000000 are micro.

Let’s understand how the Udyam Registration functions and help MSMEs tap into the benefits after registration.

What is Udyam Registration?

Udyam Registration is a type of certification. It allows small, micro, and medium enterprises to sign up with the government. With the help of this registration, MSME get a commendation certificate along with a unique identity number.

This certificate licenses such enterprises as MSMEs. Not to mention, such certificates enable enterprises to reap the benefits of the MSMEs business sector in India.

Who Can Get Udyam Registration?

The enterprises or companies that qualify for Udyam Registration should be in the production, manufacturing, preservation, or processing of goods business. They can also be from the service sector, offering the services.

Hence, traders who import, buy, sell, or export goods are not allowed to apply for Udyam Registration.

However, one should keep in mind that there are certain criteria an entity must meet to qualify as a small, medium, or micro-enterprise to acquire MSME registration.

Here is an overview of the types of enterprises that qualify for Udyam Registration:

Types of Enterprises ( for Manufacturing or Service sector, Both)

•  Micro Enterprise: Such enterprises can invest up to Rs 1 cr. The turnover for such enterprises is a maximum of Rs. 5 cr.
• Small Enterprises: The maximum investment for such enterprises is up to Rs. 10 cr. The turnover for such enterprises is a maximum of Rs. 50 cr.
• Medium Enterprises: The maximum investment for such enterprises is go up to Rs. 50 cr. The turnover for such enterprises is maximum of Rs. 250 cr.

Note: At present, Udyam has more than 96 lakh new and existing businesses recorded as MSMEs.

Key Features Of Udyam Registration

Here is the list of the key features of Udyam Registration:

• The registration document is generated online.
• The registration process does not include any paperwork. Add to it; it has zero charges.
• An enterprise is allowed to file only one registration.
• After the registration is completed, a permanent registration number is generated.
• There is no need for registration renewal.
• The Udyam Registration online portal is unified with GST and income tax identification systems.

Benefits of Udyam Registration For MSMEs

Here are the benefits that MSMEs are entitled to:

• Direct Tax Exemption: MSME companies registered under Udyam are excluded from direct tax during the beginning years of a business. It depends on one important factor, which is the nature of your business.
• Allowances on Loan Interest Rates Provided by Banks: Banks offer a 2% interest subsidy on existing or new loans to Udyam Registration companies, as per the interest subvention scheme.
• Advantages on Patent Fees and Trademark, up to 50%: Businesses registered as MSMEs can get 50% discount on patent fees and trademarks by accessing the Udyog Aadhaar/ SSI Reg./ MSME certificate.
• Qualify for Collateral Free Loans: The Indian government provides collateral-free loans of around 2 crores. This free funding is provided to all MSME entrepreneurs under the CTGSME Collateral Free Finance plan. Businesses registered under Udyam with a yearly turnover of Rs. 250 crores are eligible to take advantage of this scheme. You can also avail of this scheme with an investment of Rs. 50 crores in Plant and Machinery.
• Easy Access to Approvals, Licenses, and Registrations: MSMEs registered under the Udyam scheme are given preference for different licenses and registrations by the government.
• Discount on Electricity Bills: The government offers concessions to MSME businesses on electricity bills.
• Exemption on an Overdraft of up to 1% Interest Rate: All MSME registered businesses can get an exemption on an overdraft of nearly 1% interest rate. But, it depends from bank to bank.
• ISO Certification Costs can be Acquired: ISO certification costs are considered very expensive. This is why the government offers reimbursements advantages to MSMEs looking for ISO 9000/ISO 140001 certification. The limit of the reimbursement is 75% of the cost.
• Special Attention on International Trades: The business should be registered via the Udyog Aadhaar Memorandum to take advantage of the government plan. Here are the elements of the government scheme:
  1. National and International Workshops on Packaging, Marketing, and Public Procurement.
  2. Vendor Development Programmes.
  3. Reimbursement on Bar Code.

• Claim Registration Expenses and Stamp Duty Suspension: The government provides concessions to companies registered as MSMEs.
• Protection against Late Payments: Arrangements for late payments to small, medium, and micro companies have been set up under the MSMED 2006 act.
• Credit Rating Provision:

• Barcode Registration Provision: The small, micro and medium sector businesses are given 75% reimbursement of the annual recurring costs for the initial 3 years for the barcode use along with the registration costs. As a result, marketing competitiveness improves.

The above-mentioned points are some of the key benefits of Udyam Registration that MSMEs are entitled to receive after registration.

Documents Needed for Registration 

Here is the list of the documents required by MSMEs for registration in Udyam:

• Entrepreneur’s Aadhaar card
• Fax number
• Date of the Business starting
• Passbook copy
•  Business Type
• PAN card of the enterprise
• Entrepreneur’s social category
• Mobile number
• Articles of Association (AOA)
• Email address
• Registered documents of the company
• GST Certificate
• List of employees, both male, and female
• Current financial statement of the business
• Partnership deed, if any
• Memorandum of Association (MOA)

Steps to Register as MSME for Registration 

Here are the steps to register your company as an MSME:

• Navigate to the Udyam Registration website.
• Press the option “For new entrepreneurs who are not signed as MSME”.
• Add the Aadhaar number along with the OTP acquired on the mobile number.
• Press the validate button to authenticate the Aadhaar number successfully.
• Authenticate the PAN card with MSME by adding the enterprise type.
• File the particular form of MSME registration by adding the required details like email address, bank details, date of initiation of organisation, phone number, and amount invested.
• After the form has been filed, press Agree on terms and policies and then submit the form. An OTP will be generated. Enter it and then click on Submit.
• An e-registration certificate will be generated and sent to your provided email ID.

How to Check the Validity of Udyam Registration?

Here are the steps to check the authenticity of Udyam registration:

• Step 1: Go to the MSME website
• Step 2: Add the 12-digit Udyam registration number
• Step 3: Press on the valid verification code by putting in the Captcha image
• Step 4: The verification code is case-sensitive. Hence, add it in the right manner
• Step 5: Press Verify
• Step 6: The screen will display all the information

Conclusion 

Udyam Registration is a paperless and cost-less podium for MSME entrepreneurs to sign up for their companies. Businesses need to get this registration to reap the various MSME benefits. Not to mention it also helps the government to gather data on all the MSMEs in India.

In case your company has not been registered with Udyam, do it today via Yubi and enjoy its benefits.

FAQs

What is the primary goal of the Udyam Registration scheme in India?

The primary objective of Udyam Registration is to provide operational and legal status to all minor or media-sized businesses through a certificate. All MSMEs must have this certification to reap the benefits of government-backed MSME initiatives.

How much one needs to pay to get their MSME registered in the Udyam portal?

To register under the Udyam scheme, no charges are levied. It has zero charges, and the registration is free too.

Is it essential to have a bank account for Udyam Registration?

Yes. It is mandatory to have a bank account for Udyam Registration. Along with bank account details, Aadhar card and PAN card information are compulsory for Udyam Registration.

Can a retail shopkeeper get registered under Udyam Registration?

Yes. Every retail and wholesale shop falls under the category of MSME.