MSME Registration, also known as Udyam Registration, is a certificate provided to Micro, Small, and Medium-sized Enterprises in India under the Micro, Small, and Medium Enterprise Development Act of 2006. (MSMED). The following are the key goals of the MSME department in terms of delivering Udyam Registration:
- To enable Micro, Small, and Medium Enterprises (MSMEs) to participate effectively in the global marketplace.
- To promote the broad expansion of Micro, Small, and Medium Enterprises in order to effectively tackle unemployment and poverty on a large scale.
- To consolidate the benefits of many government initiatives for Small Scale Industries (SSI) businesses.
- To defend SSI from huge enterprises’ financial exploitation.
Eligibility for Udyam:
Udyam registration is not available to all businesses. The following factors are used to determine if a company is a micro, small, or medium one:
- a microbusiness having a total investment of less than one crore rupees in plant and machinery or equipment and a sales of less than five crore rupees
- a small business with annual sales of less than fifty crore rupees and a capital investment in plant and machinery or equipment of less than ten crore rupees; and
- a medium-sized company with a turnover of not more than 250 crore rupees and a capital investment of not more than fifty crore rupees in plant and machinery or equipment
The registration procedure is as follows:
- On the Udyam Registration portal, the registration form will be available.
- An Aadhaar number will be required for Udyam registration.
- The owner’s Aadhaar number will be used in a proprietorship firm; the controlling partner’s number will be used in a partnership corporation; and the karta number will be used in a hindu undivided family.
- In the event of a Company, a limited liability partnership, a cooperative Society, a Society, or a Trust, the organisation or its authorised signatory must supply its GSTIN and PAN, as well as its Aadhaar number.
- If the entity is correctly registered as an Udyam with a PAN, any information gaps from previous years when the entity did not have a PAN must be filled out on a self-declaration basis.
- A single Udyam Registration may include or add any number of operations, including production, service, or both, but no firm may submit more than one Udyam Registration.
- Section 27 of the Act punishes anybody who deliberately misrepresents or tries to conceal self-declared facts and figures during the Udyam Registration or update procedure.
Registration of Existing Business Entities:
All current companies registered under EM–Part-II or UAM must re-register on the Udyam Registration site on or after July 1, 2020.
As a result of this notice, all businesses that were registered before June 30, 2020 will be reclassified.
Existing businesses will have their registrations extended until December 31, 2021, if they were registered before June 30, 2020.
Any company that is already registered with another ministry agency in the Ministry of Micro, Small, and Medium Enterprises must also register with Udyam Registration.
Benefits of Udyam Registration:
The government offers free Udyam registration that is simple and quick to complete online. Udyam Registration can benefit a company in the following ways:
- Financial aid will be provided to the applicant in order for them to attend international trade exhibitions and advertise their products.
- In addition, the individual will be entitled for government assistance.
- The registration would allow it simple and quick to create current accounts in the company’s name.
- Businesses will also be able to apply for government microbusiness loans and other similar programmes.
- Bank loans are more accessible and come with cheaper interest rates.
The following documents are required for Udyam registration:
The applicant’s personal Aadhaar is the most crucial condition for obtaining Udyam Registration in the case of a proprietorship. Aside from an e-mail address and a phone number, no other documents are necessary.
- The applicant’s Aadhaar must be used in the event of a proprietorship.
- The Aadhaar numbers of the partners can be used in the event of a partnership.
- The Directors Aadhaar could be employed in the case of a company.
- The Designated Partners Aadhaar can be used in the case of LLPs.
The method for submitting an application for Udyam Registration is as follows:
Follow the steps below to register for Udyam online:
- Go to the Udyam Registration Portal to get started.
- To complete the verification procedure, enter the applicant’s 12-digit Aadhaar number.
- Name of Authorized Signatory or Owner – Enter the name of the authorised signatory or owner as it appears on the Aadhaar Card.The applicant would be unable to finish the form if the name does not match the Aadhaar number.
- Indicate the applicant’s socioeconomic status: Other Backward Castes/General/Scheduled Caste/Scheduled Tribe/Other Scheduled CastesThe competent authorities may, if necessary, request proof of SC, ST, or OBC status.
- Fill in the company’s name as it is known to clients and the general public, as well as whether or not it is a legal entity with the authority to conduct business.
- Type of Organization – Choose your company’s legal structure.
- pan- Whether it’s a corporation or an LLP, enter the PAN of the entity for which Udyam Registration is necessary.
- Fill in the addresses for all of the company’s locations in this section.
- Fill in your primary or business address, as well as your phone number and email address.
- Date of Incorporation – This is the date on which the firm was founded.
- Data from previous MSME registrations – If applicable, provide data from a previous MSME registration.
- Bank Account Information – Fill in the IFSC Code and Bank Account Number for the company’s bank account.
- Choose the primary business activity, such as manufacturing or service, for your organisation.
- NIC (National Identification Code) – Select the appropriate NIC Code from the National Industrial Classification (NIC) manual.
- Employees – List the total number of people who work for the company.
- Investment in Plant and Machinery/Equipment – Enter the total amount of money spent by the company on machinery and equipment. The cost of the land and the cost of the construction are not included.
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Double-check your work before clicking the Submit button after you’ve completed all of the fields. Check the OTP number and the required Captcha code generated by the registered phone number. An acknowledgment number will be given to the applicant, which should be kept for future reference.