How UDYAM Registration benefits the MSME Sector?
The main question that several newbie entrepreneurs have in their minds is what Udyam Registration is. If you are having the same question, then you are at the right place.
Udyam Registration also known as MSME Registration is nothing but a government registration that is provided along with a recognition certificate and a unique number. This is to certify small/medium businesses or enterprises.
The central motive behind the launch of this facility was to offer a way to the government to provide the maximum benefits to medium or small-scale businesses or industries in India, who are registered via MSME through their Aadhar Card Number.
The owner, director, or proprietor of the entity will provide his/her 12-digit Aadhar Number. This is a compulsory guideline whether the enterprise or entity is a sole proprietor, an LLP, a Private limited company, or anything else. It should have the recognition certificate provided via the MSME registration process.
Who Can Get Udyam Registration
Let’s get some things clear! The organizations which are eligible for Udyam Registration are meant to be either in manufacturing or producing or processing or preservation of goods or in providing the services. In other words, Traders who buy, sell, import, or export the goods are not even eligible for applying for Udyam Registration.
But you should know that there are a set of criteria that an entity has to meet to be classified as a medium, small, or micro-enterprise for obtaining the MSME registration.
Types of Enterprises (For Manufacturing or Service sector, both)
1. Micro Enterprises: Investment up to Rs 1 Cr and turnover up to Rs 5 Cr
2. Small Enterprises: Investment up to Rs 10 Cr and turnover up to Rs 50 Cr
3. Medium Enterprises: Investment up to Rs 50 Cr and turnover up to Rs250 Cr
Steps of UDYAM Registration
The process of Udyam Registration is quite easy, and the form filling process is pretty straightforward too. The system today is kind of rejuvenated, and it seeks comparatively less information than the older process. It’s important to note that the MSME Registration is free of cost and the website does not charge any official fee for issuing registration certificates.
Things are way simpler and efficient now. Here is a simple guide for registering under MSME for obtaining Udyam Registration.
Step 1: Visit the Official Website
The very first steps for getting your business registered online will be by visiting the official Udyam Registration portal.
Click on the “For new Entrepreneurs who are not registered yet as MSME” option.
Step 2: Enter your Personal Information
The initial particulars that you will need to enter will be your name and your 12-digit unique Aadhar number. Click on “Validate & Generate OTP.” You will receive an OTP on your registered mobile number. Enter the OTP.
Special Note: For New Enterprises, Aadhaar number shall be required for Udyam Registration, of the proprietor in the case of a proprietorship firm; of the managing partner in the case of a partnership firm; of a Karta in the case of a Hindu Undivided Family (HUF); of authorized signatory in case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust.
Step 3: PAN Verification
Select the type of organization and enter your PAN no and click on validate. PAN validation takes place.
In case of a Company/ LLP/ Cooperative Society/ Society/ Trust that its authorized signatory shall provide GSTIN and PAN of the Company/ LLP/ Cooperative Society/ Society/ Trust along with his AADHAAR number.
Step 4: Filing Correspondence Details
After filling in all the details mentioned above, the next information that you will have to provide will be the complete postal address of the company/enterprise/entity. Also info about your company’s district, pin code, state, email address, and mobile number.
Step 5: Fill the Bank Details
You will have to enter your enterprise’s active bank account number along with the IFSC code of the concerned branch. If you don’t have the IFSC code of the concerned branch, you can obtain the same on the bank’s website.
Step 6: Enterprise Details
You will have to mention the mainline activity of your enterprise from the “services” or “manufacturing”. You will have to submit the total number of persons employed and National Industry Classification(NIC) Code for Activities.
After filling in all the particulars, the last thing will be entering the total amount of money (in lakhs) that you have invested in your machinery or plant.
Step 7: Select the District Industry Center and Accept the Declaration
In the final step of this process, you will be selecting the district industry centre from the provided drop-down list. After that, you will have to accept the declaration and click on “Submit and Get final OTP”
Enter the OTP received on mobile and click on the “Final Submit” button.
Once you click on ‘Submit and Get Final OTP ’you will receive a registration number. Once all your information is verified by the Government, you will receive an E-registration document on your e-mail id.
Documents Required for UDYAM Registration
- MSME registration process is fully online, paperless, and based on self-declaration.
- There is no requirement of documents or proof for registering an MSME.
- Only the Adhaar Number will be enough for registration.
- PAN & GST linked details on investment and turnover of enterprises will be taken automatically from Government databases.
- Having PAN & GST number is mandatory from 01.04.2021.
Procedure in Case of any Discrepancy or Complaint
In case of any discrepancy or complaint, the General Manager of the District Industries Centre of the concerned District shall undertake an inquiry for verification of the details of Udyam Registration submitted by the enterprise.
Thereafter, forward the matter with necessary remarks to the Director or Commissioner or Industry Secretary concerned of the State Government who after issuing a notice to the enterprise and after allowing presenting its case and based on the findings, may amend the details or recommend to the Ministry of Micro, Small or Medium Enterprises, Government of India, for cancellation of the Udyam Registration Certificate.
Benefits of Getting Registered as UDYAM
One will get to enjoy several advantages after registering his/her business and by obtaining Udyam Registration. The best thing about obtaining Udyam Registration is that the process is quite simple and in addition to that, one won’t have to handle the paperwork for obtaining Udyam Registration. Check out the top benefits:
- Udyam registration helps in getting government tenders
- Due to the Udyam, the bank loans become cheaper as the interest rate is very low (Upto 1.5% lower than interest on regular loans
- There are various tax rebates available for Udyam
- Becomes easy to get licenses, approvals, and registrations, irrespective of the field of business. Higher preference is given to businesses registered under Udyam for government license and certification.
- They get easy access to credit in lower interest rates
- Registered Udyams gets tariff subsidies and tax and capital subsidies
- Registration helps in the reduction of the cost of getting a patent done or the cost of setting up the industry. With the help of many rebates and concessions available.
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