CALL NOW +91 – 8800110989 MSMEs have a very important place in the growing economy of India and those are contributing to the employment, innovation and the GDP of the nation. The Indian government has launched several policies to aid and foster the operations of MSMEs. Among these, the Udyam Registration rises to the occasion as a major pillar, effectively facilitating the MSMEs to move up to the legal framework for operations and receive a lot of benefits. Udyam Registration was initiated recently and it was executed on July 1, 2020 as a replacement of prior Udyog Aadhaar and MSME registration services that were offered earlier, being faster and effective for businesses. In this article we will provide detailed information about Udhayam Registration in India.
What is Udyam Registration?
Udyam Registration is yet another web-based, document-free, and self-registered model meant for easy registration of MSMEs. This means that the process of enterprises’ registration is smooth and fast and they can begin receiving the advantages immediately, no need for loads of papers and physical submission. The word ‘Udyam’ indeed means enterprise so as to emphasize the initiative of promoting small institutions.
The Significance of MSME In Indian Economy
It would be pertinent to explain the genesis of Udyam Registration before explaining the concept in detail. To make an understanding of Udyam Registration, it’s important to know the relevance of MSMEs in the Indian economy. MSMEs are one of the most significant sectors for India’s economic framework as it has provided over 45% in industrial production, having 40% contribution in the export sector and offers employment to over 110 million people in the nation. These enterprises span across several industries; manufacturing, service and trading sectors and are a key source of economic prosperity and employment opportunities.
Benefits of Udyam Registration
The government’s Udyam Registration program is beneficial in numerous ways to micro and small businesses, and their success shows a great potential for growth, innovation, and stability. Some of the key advantages include:
Access to Government Schemes: Few of the government schemes are Credit Guarantee Fund Scheme, Prime Minister’s Employment Generation Programme (PMEGP), and Public Procurement Policy shall on formally register under the MSMEs Act. Such legislation offers credits, subsidies and other forms of support that aim at enhancing business stability and development.
Ease of Obtaining Licenses and Approvals: The Udyam Registration is favorable for enterprises as it allows them to obtain various government licenses, approvals, and registrations rather quickly. The reduction of these eligibility conditions results in minimizing bureaucratic procedures, thus directing the business entities to undertake their core functions.
Credit Facilities and Lower Interest Rates: It is worthy to note that only registered MSMEs are eligible to access loans and credit facilities at concessionary interest rates. Small scale operations often get collateral free finance through different formal channels like Credit Guarantee Fund Trust for Micro and Small Enterprise (CGTMSE), making it easier on their balance sheets.
Subsidies and Concessions: MSMEs are also entitled to different subsidies which are bearing to patent registration industries promotion and infrastructural development. These will foster innovation and competition within the industry, which is desirable.
Protection against Delayed Payments: The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in Indian law provides MSMEs a mechanism to safeguard against delayed payments by buyers. There are also legal measures where registered enterprises can take legal actions against the offenders and complain to recover their dues from the defaulters.
ISO Certification Charges Reimbursement: MSMEs are allowed to deduct the cost incurred in acquiring ISO certification from their tax with an opportunity of reclaiming the costs incurred in the process of acquiring it. Small business participation seeks to increase quality and standardization of products and services from small enterprises.
Market and Export Promotion: The promotion of exports involves participation in international trade fairs, exhibitions as well as the buyer-seller meets through facilitating Udyam registration. This exposure assists MSMEs in extending their market presence as well as evaluating for export incursion.
Also Read :- From Concept to Patent: A Comprehensive Guide Explaining How to Register a Patent in India
Udyam Registration Eligibility Criteria
To be eligible for Udyam Registration, an enterprise must fall under one of the following categories based on investment in plant and machinery or equipment and turnover. Eligibility Criteria as mentioned on government Udyam registration portal is as follows
(i) Micro Enterprise: where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
(ii) Small Enterprise: where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and
(iii) Medium Enterprise: where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
These criteria ensure that the benefits of Udyam Registration are targeted towards genuine MSMEs, promoting equitable growth and development across the sector.
How to Apply for Udyam Registration Online
To apply for MSME Udyam Registration Online, you should consider the following factors as outlined below: Here’s a step-by-step guide to help you navigate the process:
Visit the Udyam Registration Portal: Start by registering at the Udyam registration portal as the website is the official one and its address is https://udyamregistration. gov. in/. It means that it is the platform where all the registration-related work starts and ends.
Enter Aadhaar Details: The registration process starts with the Aadhaar number of the entrepreneur or the person authorized for signing by the enterprise. Aadhaar is one of the types of identity proof that has the main objective of proving the identity of the applicant.
Verify OTP: When an applicant types in the Aadhaar number, the one-time password is sent to the registered mobile number. To continue using the App, please enter the OTP sent to your account. This is so as to make sure that the registration procedure is being claimed by the actual owner or the representative of the enterprise.
Fill in Business Details: After the OTP is entered you will be prompted to create an account by entering your business information. This includes:
- Name of the enterprise
- Organization structure (Individual or Sole Trader, Partnership, Limited Liability Partnership, Company etc. )
- PAN stands for Permanent Account Number and it is registered in the case of business or even if the individual is registering for any business purpose.
- Company location and business address
- Bank account details
- Sector Shapes (manufacturing / service)
- Number of employees
- The purchase of plantation, furniture, computer or any other movable property which is used for carrying out the business activities.
- Turnover of the business
It is necessary to ensure that all data in the registration and classification of the enterprise are relevant and contain all necessary information.
Classification of Enterprise: In a case where you do not specify the size of your enterprise when submitting data into the portal, then it will identify your enterprise as Micro, Small, or Medium based on the data provided. This is important because it shapes the nature of the advantages and plans for your company.
Upload Documents: Usually, at this step, no documents are needed to be uploaded as a form of identification during registration. However, it is always better to have Aadhaar, PAN, and bank details handy to ensure accuracy of information.
Submit the Application: Work through all the details entered and then click the ‘Submit Application’ button. It is useful to pay much attention to the initial information to prevent any possible mistakes that might be made later.
Receive Udyam Registration Certificate: Having successfully completed the registration process, an exclusive Udyam Registration number and a certificate will be provided. This certificate is used for the purpose to confirm that the enterprise is registered under the Micro, Small and Medium Sized Enterprises category. This shall be in the form of a certificate which will be sent to your registered email ID and can also be accessed from the portal.
The Comprehensive Impact of Udyam Registration
The Udyam Registration venture is one to formalize the MSME structure, for the official economy. The registration process on its own is easy and the government seeks to attract many small businesses by providing as many benefits as it can to boost their growth.
- This initiative is expected to promote the competitiveness and productivity of businesses and the MSMEs.
- Increase contribution of the manufacturing sector to the GDP and export
- Encourage the developmental, innovation and the utilization of technology in the sector.
- Address the need to improve access to finance and new markets.
In addition, by linking with other portals like GST and PAN, the government can monitor and better assist MSMEs in the processes involved with the Udyam Registration.
Also Read :- From Paper to Digital: Understanding Online Lease Agreements and Rental Lease Agreements
Simplify Your Udyam Registration Process with Insaaf99
Insaf99 helps MSMEs register online, some of the services that are provided as part of their responsibilities include: confirming the authenticity of a candidate, helping them fill out forms correctly and accurately, and ensuring that a candidate meets all the registration criteria. legal advice is available at Insaaf99’s and the team is always ready to solve any additional questions or problems, so it is very comfortable to register with no headache. Thus, utilizing Insaaf99 services for Udyam Registration, businesses can promptly and effectively complete the registration process and enjoy the benefits of various government schemes.
Conclusion
Udyam Registration is a progressive step for the MSME sector taken by the government of India. It offers a simple, structured and organized and transparent registration process, which helps organizations to formalize their operations and access a wide range of government benefits and support schemes. Entrepreneurs and business owners are encouraged to leverage this initiative to enhance their business prospects, improve operational efficiency, and contribute to the nation’s economic growth.
Frequently Asked Questions
Who is eligible for Udyam?
The eligibility criteria for Udyam Registration are:
Micro Enterprise: Investment in plant and machinery or equipment up to ₹1 crore and turnover up to ₹5 crores.
Small Enterprise: Investment in plant and machinery or equipment up to ₹10 crores and turnover up to ₹50 crores.
Medium Enterprise: Investment in plant and machinery or equipment up to ₹50 crores and turnover up to ₹250 crores.
How to download Udyam registration certificate?
To download the Udyam Registration certificate, visit the official Udyam Registration portal, log in using your Udyam Registration number and mobile number linked to your Aadhaar, and follow the prompts to download the certificate.
What are the benefits of a Udyam certificate?
There are a host of benefits on offer. Some significant benefits are access to government schemes and subsidies, lower interest rates on loans, protection against delayed payments, eligibility for ISO certification reimbursement etc.
