The goal of creating Udyam Registration was to make the process of registering a firm under the Micro Small Medium Enterprise (MSME) category easier for business owners.
Prior to the establishment of Udyam Registration, the procedure for doing so was a time-consuming bureaucratic process that required the management of a large amount of papers. Since the introduction of Udyam Registration, things have changed, improved, and gotten easier for medium, small, and micro-enterprises.
If you own a medium, small, or micro-business and haven’t registered it yet, now is the time you should know that registering your MSME with Udyam Registration comes with a plethora of benefits.
There used to be an EM-I/II system prior to the UAM system (Entrepreneur Memorandum). Under this arrangement, entrepreneurs used to choose a heterogeneous system.
To complete MSME registration, some of them used the national portal, while others used state-run portals. Furthermore, just a small percentage of them used to rely on physical paperwork.
However, things have altered since the previous system was replaced.
Udyam Registration: What Is It and How Does It Work?
The most common question that many new entrepreneurs have is what Udyam Registration is. You’ve come to the right place if you have the same question.
Udyam Registration, also known as MSME Registration, is a government-issued certificate that comprises a unique number and a certificate of recognition. This will be used to certify small and medium-sized enterprises and organizations.
The main goal of this facility was to provide a mechanism for the government to provide the most benefits to medium and small-scale firms and industries in India that are registered through MSME using their Aadhar Card Number.
The 12-digit Aadhar Number of the entity’s owner, director, or proprietor must be provided. This is a legal requirement regardless of whether the firm or entity is a sole proprietorship, an LLP, a private limited company, or something else. It is necessary to have a certificate of recognition obtained through the MSME registration process.
Who is allowed to participate in Udyam?
Let’s clarify some things! Organizations that qualify for Udyam Registration are either in the business of producing, processing, or preserving commodities, or delivering services. Traders who buy, sell, import, or export items, in other words, are not eligible for Udyam Registration.
However, in order to be classified as a medium, small, or micro-enterprise and get MSME registration, a company must meet a set of criteria.
Qualification for Udyog Aadhaar
The Udyog Aadhaar can be obtained by any type of business entity.
- Undivided Hindu Family
- A one-person business
- Firm with a partnership
- Limited-liability corporation
- Limited liability company (LLC)
- Co-operative Societies
- Any group of individuals
The Udyam Registration Process
The Udyam Registration procedure is simple, as is the form completing procedure. The existing system has been upgraded, and it now requires significantly less data than it did previously. It’s worth noting that MSME registration is free, and there’s no formal price for getting a certificate of registration on the website.
Today’s world is considerably simpler and more efficient. Below is a step-by-step guide to obtaining MSME Udyam Registration.
Step 1: For additional information, go to the official website.
Your first visit for getting your business online registered will be the official Udyam Registration page.
Choose an option. “For new business owners who haven’t yet applied for a small business licence.”
Step 2: Complete your personal information.
The initial facts you’ll need to submit are your name and your 12-digit unique Aadhar number. You will receive an OTP on your registered mobile number if you click on “Validate & Generate OTP.” Enter the one-time password.
Aadhaar number 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 the case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust will be required for Udyam Registration for New Enterprises.
Step 3: Verification of PAN
Choose the sort of business you want to start, then input your PAN number and click “Validate.” Validation of the PAN is carried out.
The authorized signatory of a Company / LLP / Cooperative Society / Society / Trust must supply the Company / LLP / Cooperative Society / Society / Trust’s GSTIN and PAN, as well as his Aadhar number.
Step 4 : Filling in Correspondence Information
After filling out all of the aforementioned information, the next piece of information you’ll need to submit is the company’s/enterprise’s/entire entity’s postal address. The district, pin code, state, email address, and phone number of your company are also provided.
Step 5: Fill in the Bank Information
You’ll need to input the active bank account number for your company as well as the IFSC code for the branch in question. If you don’t know the IFSC code for the branch in question, you can look it up on the bank’s website.
Step 6: Provide information about the business.
From the “services” or “manufacturing” categories, you must mention your company’s principal business. You must mention the total number of employees as well as the National Industry Classification(NIC) Code in the Activities section.
After you’ve filled out all of the details, the last step is to enter the total amount of money you’ve invested in your machinery or plant (in lakhs).
Step 7: Accept the Declaration and choose the District Industry Center
In the final step of the process, you’ll choose the district industry center from a drop-down menu. Then, by clicking “Submit and Get Final OTP,” you must approve the declaration.
Hit the “Final Submit” button after entering the OTP that was supplied to your phone.
When you click the ‘Submit and Get Final OTP’ button, you will be issued a registration number. Once the government has verified all of your information, you will receive an E-registration document to your email address.
Is there a document required for Udyam registration?
MSME registration is entirely electronic, requiring no paper, and is based on self-declaration.
- Number on Aadhaar Card
- PAN Number
- Details about the company’s address
- Name of the company
- Information about your bank account
- Type of Company
- Mobile No.
- E-mail address
- Latest ITR
- No. of GST
What happens if there is a difference or a complaint?
In the event of a discrepancy or complaint, the General Manager of the concerned District Industries Centre will conduct an investigation to verify the details of the Udyam Registration filed by the firm.
After that, forward the matter to the concerned State Government Director, Commissioner, or Industry Secretary, who, after issuing a notice to the enterprise and allowing it to present its case, may amend the details or recommend cancellation of the Udyam Registration Certificate to the Ministry of Micro, Small, and Medium Enterprises, Government of India.
What Are The Advantages Of Becoming A Registered UDYAM?
After registering a business and getting Udyam Registration, one will be able to take advantage of a number of benefits. The best part of obtaining Udyam Registration is that it is a straightforward process that does not require one to deal with any paperwork. Here are some of the most important advantages:
- It’s easier to acquire government contracts if you register with Udyam.
- Because the interest rate is so low, bank loans become more affordable as a result of the Udyam (up to 1.5 percent lower than conventional loans).
- A number of tax incentives are available to Udyam.
- Regardless of the company’s industry, obtaining licenses, approvals, and registrations becomes simple. For government license and certification, enterprises registered under Udyam are given higher priority.
- They have easy credit with cheap interest rates.
- Tariff, tax, and capital benefits are all available to registered Udyams.
- Registration can help reduce the cost of getting a patent or creating a business. Many discounts and concessions are available to help.
Suggested Read: Udyam Registration Form