A certificate provided to Micro, Small, and Medium-sized Enterprises in India under the Micro, Small, and Medium Enterprise Development Act of 2006 is known as the Udyam Registration Portal or MSME Registration (MSMED). MSME Registration used to be the name for Udyam Registration. The following are the main objectives of the MSME department with regard to providing Udyam Registration:
- to make it possible for micro, small, and medium-sized businesses to successfully compete against global competition.
- to vigorously promote the growth of Micro, Small, and Medium Enterprises in order to successfully tackle poverty and unemployment.
- the purpose of this project is to consolidate the advantages of many government programs for Small Scale Industries (SSI) businesses.
- to defend SSI from financial exploitation by big businesses.
Eligibility for Udyam:
All companies are not eligible for Udyam Registration. A company is classified as a micro, small, or medium enterprise based on the following standards:
- a microbusiness with a turnover of less than five crore rupees and a total investment in plant, machinery, or equipment of less than one crore rupees
- a small company having a capital investment in plants, machinery, or equipment of less than ten crore rupees and annual revenue under fifty crore rupees; and
- a medium-sized business with a turnover of no more than 250 crore rupees and an investment in plant, machinery, or equipment of no more than 50 crore rupees
The method for registering is as follows:
- The registration form will be accessible on the Udyam Registration portal.
- Udyam registration will require an Aadhaar number.
- The Aadhaar number will be that of the owner in the case of a proprietorship company, the controlling partner in the case of a partnership corporation, and the karta in the case of a hindu undivided family.
- If the organization is a company, limited liability partnership, cooperative society, society, or trust, they (or their authorized signatory) must supply their GSTIN and PAN as well as their Aadhaar number.
- If the entity is correctly registered as an Udyam with a PAN, any information gaps from prior years when the entity did not have a PAN must be filled out on a self-declaration basis.
- A single Udyam Registration may contain any number of operations, including production, service, or both, but no company is permitted to file more than one Udyam Registration.
- Under section 27 of the Act, anyone who knowingly gives false information or tries to hide self-declared facts and data during the Udyam Registration or update procedure can be penalized.
Existing Business Entity Registration:
- All current businesses that are registered under EM-Part-II or UAM must reregister on the Udyam Registration website on or before July 1, 2020.
- Prior to June 30, 2020, all enterprises will be reclassified in accordance with this notice.
- Businesses that are currently operating and were registered before to June 30, 2020, will only be valid through December 31, 2021.
- Any company that is already registered with a Ministry of Micro, Small, and Medium Enterprises agency must also register with Udyam Registration.
Udyam Registration Benefits:
Online Udyam registration is simple and quick thanks to the government’s free service. A corporation can gain from Udyam Registration in the following ways:
- Financial support will be provided to the applicant in order for them to exhibit at international trade events and market their goods.
- The candidate will also be qualified for government aid.
- Current accounts in the name of the company could be opened quickly and easily thanks to the registration.
- Additionally, businesses would be able to apply for assistance initiatives like government microbusiness loans.
- Bank loans are more accessible and offer lower APRs.
Registration for Udyam requires the following documents:
The applicant’s personal Aadhaar is the most crucial requirement for obtaining Udyam Registration in the event of a proprietorship. There are no more documents required than a phone number and an email address.
- If the applicant is a proprietor, their Aadhaar must be used.
- In the case of a partnership, the Aadhaar of the partners may be used.
- In the case of a firm, the Director’s Aadhaar may be used.
- In the case of LLPs, the Designated Partner’s Aadhaar may be used.
The following is the procedure for submitting an application for Udyam Registration:
The steps listed below should be followed to register for Udyam online:
- Visit the Udyam Registration Portal to get going.
- Enter the 12-digit Aadhaar number of the applicant to complete the verification process.
- Owner’s Name: Enter the name of the owner or authorized signatory as it appears on the Aadhaar Card. If the name does not match the Aadhaar number, the applicant cannot submit the form.
- Social Category: Please specify the applicant’s caste, choosing from General, Scheduled Caste, Scheduled Tribe, or Other Backward Castes. The appropriate authorities may ask for proof of OBC, SC, or ST classification as needed.
- Name of Business – Indicate whether or not the firm is a legal entity with the authority to conduct business, as well as the name by which it is known to customers and the general public.
- A single applicant may obtain one Udyam Registration using the same Aadhaar Number in the case of multiple companies.
- Organizational Type – Decide the legal form your business will take.
- whether it is a corporation or LLP, enter the PAN of the entity for which Udyam Registration is necessary.
- Plant location – List all of the company’s locations’ addresses here.
- Along with your phone number and email address, enter the primary or corporate office address.
- Enter the company’s founding date under Commencement Date.
- Details about earlier registrations – If applicable, include information from an earlier MSME registration.
- Bank Account Information – Enter the IFSC Code and Bank Account Number for the business’s bank account.
- The primary business activity, such as manufacturing or providing services, should be chosen.
- NIC (National Identification Code) – Select the applicable NIC Code from the National Industrial Classification (NIC) manual.
- Enter the total number of individuals that are employed by the company.
- Investment in Plant and Machinery/Equipment – Indicate how much the company spent on machinery and equipment. Don’t factor in the price of the building or the land.
- If necessary, include the contact information for the District Industry Centre that is closest to the firm. DIC (Department of Corrections).
After you’ve filled out every field, go back and review your work before clicking the Submit button. Verify both the required Captcha code and the OTP number generated by the registered phone number. An acknowledgment number will be given to the applicant, which they should record for their records.