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UDYAM REGISTRATION - A  STEP-BY-STEP GUIDE

INTRODUCTION    

Udyam registration is a new method for registering MSMEs that was established on July 1 2020, by the Ministry of Micro, Small and Medium Enterprises. Udyam registration replaced the Udyog Aadhaar registration and the process is now more user-friendly compared to the earlier Udyog Aadhaar registration process. The government of India has created a special website for Udyam registration. This makes it easy for MSMEs to register their businesses and  access the various benefits.

Understanding Udyam Registration: 

Udyam Registration: This refers to the process of registering a MSME under the Udyam Registration portal. It involves providing all the necessary information and documents to obtain a unique identification number called the Udyam Registration Number (URN).

Udyam Registration Certificate: This is the document issued upon successful completion of the Udyam Registration process. It contains details such as the Udyam Registration Number (URN), the name of the enterprise, its type (micro, small, or medium), and other relevant information. The certificate serves as official proof of registration and is often required when applying for government schemes, incentives, or financial assistance.

Benefits of Udyam Registration

Udyam Registration offers several benefits and incentives to registered MSMEs. Here are some of the advantages:

1. Easy Access to Credit : 

 Registered MSMEs can avail of various credit facilities with lower interest rates from banks and financial institutions. The registration serves as proof of the business's existence and creditworthiness.

2. Government licenses and certifications:

 Businesses registered with Udyam are given priority for government license and certification. MSMEs that are registered are eligible for a variety of government incentives, including loans.

3. Priority in Regulatory Compliance:

Udyam Registration provides priority in regulatory compliance and approvals. This means faster processing times for licenses, permits, and certifications.

4. Subsidies and Incentives:

.The government offers various subsidies, incentives, and schemes exclusively for registered MSMEs. These may include subsidies for technology upgradation, obtaining certifications, and financial assistance for marketing activities.

5. Protection Against Delayed Payments:

The registration offers protection and delay payments. The payment method is safe, secure and fast. 

6. Tax Benefits:

Registered MSMEs may be eligible for tax benefits, exemptions, and rebates under different government schemes such as GST (Goods and Services Tax) benefits, income tax exemptions, and customs duty waivers for export-oriented businesses.

7. Access to Support Services:

 Udyam Registration provides a range of support and services  for MSMEs. These services may include training programs to enhance skills, technology adoption assistance, export promotion initiatives, and consultancy services for business growth strategies.

8. Enhanced Credibility:

Being registered under Udyam enhances the credibility of MSMEs in the eyes of clients, investors, and partners. It demonstrates a commitment to compliance, quality, and sustainable business practices, which can attract more opportunities and collaborations.

9. Market Development Assistance:

 Registered MSMEs may receive assistance for market development, including support for identifying new markets, participating in trade fairs and exhibitions, and accessing market intelligence reports to make informed business decisions.

10. Technology Upgradation Support:

Udyam Registration often comes with support for technology upgradation and modernization. This can include subsidies or grants for adopting new technologies, implementing energy-efficient processes, and improving productivity through automation.

Eligibility for Udyam Registration

The eligibility criteria for Udyam Registration are based on the size of the business and its turnover. Here's a detailed breakdown:

1. Micro Enterprises:

   Manufacturing Enterprises: Investment in plant and machinery should not exceed Rs. 1 crore.

 Service Enterprises: Investment in equipment should not exceed Rs. 10 lakhs.

2. Small Enterprises:

 Manufacturing Enterprises: Investment in plant and machinery should be more than Rs. 1 crore but does not exceed Rs. 10 crore.

Service Enterprises: Investment in equipment should be more than Rs. 10 lakhs but does not exceed Rs. 2 crore.

3. Medium Enterprises:

   Manufacturing Enterprises: Investment in plant and machinery should be more than Rs. 10 crore but does not exceed Rs. 50 crore.

 Service Enterprises: Investment in equipment should be more than Rs. 2 crore but does not exceed Rs. 5 crore.

4. Turnover Criteria:

 Micro, Small, and Medium Enterprises are categorized based on their annual turnover.

 Micro Enterprises: Turnover should not exceed Rs. 5 crore.

 Small Enterprises: Turnover should be more than Rs. 5 crore but does not exceed Rs. 50 crore.

Medium Enterprises: Turnover should be more than Rs. 50 crore but does not exceed Rs. 250 crore.

5. New Enterprises:

    For businesses that are newly established, the calculation of investment in plant and machinery or equipment and turnover will be based on self-declaration at the time of registration.

Udyam registration process 

Here's a few steps guides to register MSMEs  online and obtain your Udyam certificate:

1. Visit the Udyam Registration Portal:

   Go to the official Udyam Registration portal, which is https://msmeregistrar.net/ 

2. Choose the Registration Type:

 Select the registration type based on your business category, such as proprietorship, partnership, or company.

3. Enter Aadhaar Number:

   Provide your Aadhaar number for verification purposes. Ensure that the Aadhaar details match the business owner's information.

4. Enter Business Details:

   Fill in the required information about your business, including the name, address, type of enterprise (micro, small, or medium), PAN number, GSTIN, and bank account details.

5. Upload Documents:

  Upload supporting documents such as the Aadhaar card, PAN card, GST registration certificate, and other relevant documents as per the registration requirements.

6. Verify Details:

   Review all the entered details and documents to ensure accuracy and completeness. Make any necessary corrections or additions.

7. Submit Application:

   Once everything is verified and in order, submit your application for Udyam Registration.

8. Payment of Fees:

   Pay the registration fees online, if applicable. The fees may vary based on the type and size of the enterprise.

9. Application Processing:

   After submitting the application and payment, the authorities will process your application. This may involve verification of documents and details provided.

10. Issuance of Udyam Certificate:

    Upon successful verification and approval, you will receive your Udyam Registration certificate electronically. This certificate is crucial for availing benefits and incentives under various government schemes for MSMEs.

11. Download Udyam Certificate:

    Once the certificate is issued, download and save a copy of the Udyam Registration certificate for your records. You may need to present this certificate for various official purposes.

12. Update Information as Required:

  Remember to update your Udyam Registration details if there are any changes in business information, such as address, contact details, or turnover.

NOTE:- Apply for udyam re-registration via udyam portal.

 Conclusion

In conclusion, Udyam Registration is a significant step forward for Micro, Small, and Medium Enterprises (MSMEs) in India. It provides these businesses with official recognition from the government, access to various benefits and incentives, and opens up new opportunities for growth and development. By simplifying the registration process and offering a streamlined platform, Udyam Registration empowers MSMEs to succeed, innovate, and contribute to the country's economic development. .