How It Works
Simple, easy and fast processing for all documentations.
Overview
The government of India has implemented a programme called Udyam registration to support the expansion and improvement of MSMEs. It was introduced in July 2020, and businesses are obliged to register on the Udyam registration system as part of this scheme.
Simple facts about the firm, such as its name, address, and owner’s Aadhaar number, are required to complete the registration procedure online. A particular Udyam Registration Number (URN) and an electronic registration certificate are given to the company after registration. This certificate will feature a dynamic QR Code that may be used to visit the web page on the portal and find information about the company.
What is udyam registration?
Micro, small, and medium-sized companies in India must first be registered with the Ministry of Micro, Small, and Medium Enterprises (MSME). This process is known as udyam registration. This register aims to benefit MSMEs in various ways, including granting them access to loans, subsidies, and government programs. The previous Udyog Aadhaar registration system was replaced in 2020.
MSMEs are essential to the Indian economy, helping to create jobs and drive growth. Getting these companies registered with Udyam is a step towards giving them the assistance and respect they require to prosper.
Benefits of udyam registration
Eligible for loans with no collateral
The Indian government provides MSME entrepreneurs with collateral-free financing up to INR 2 crores through the “CTGSME Collateral Free Finance” programme. Businesses that are Udyam Registered and have an annual revenue of $250,000,000 or more are eligible to participate in this programme. The programme may also be accessed by investing 50 crores in equipment.
Direct Taxation Exemption
Udyam Direct tax is waived for registered MSME businesses throughout their first year of operation. It depends on the type of commercial operation.
Access to registrations, approvals, and licenses
The government prefers Udyam Registered MSMEs when granting them different permits and registrations.
Banks provide loan borrowers with a discount on their interest rates.
Under the interest subvention system, banks must provide Udyam Registered Enterprises with new or additional loans at a 2% interest rate subsidy.
Governmental discount on electricity bills
Businesses that have MSME registration are eligible for government power discounts.
Discounts on trademark and patent fees of up to 50%
Employers who are MSME-registered can use their Udyog Aadhaar or SSI Reg. Certificate to receive a 50% discount on trademark and patent expenses.
1% of the overdraft interest is waived
MSME-registered businesses may benefit from a 1% interest rate on overdraft exemption. However, it differs between banks.
Costs of ISO Certification are claimable.
MSMEs applying ISO 9000/ISO 14001 Certification are eligible for government reimbursement benefits. The highest amount that can be reimbursed is 75,000 Indian rupees or 75 per cent of the actual cost.
You can ask to have the registration and stamp duty waived.
The Aatmnirbhar Scheme allows enterprises that are recognized as MSMEs to receive subsidies from the government.
Protect from late payments.
A provision has been made for delayed payments to Micro, Small, and Medium Enterprises in compliance with the Micro, Small, and Medium Enterprise Development Act.
Eligibility for udyam registration
- According to the MSME Act of 2006, the company must fall within a micro, small, or medium enterprise category.
- The firm needs to be set up as a single proprietorship, partnership, limited liability partnership, private limited company, or other groups of people.
- The company must have a current PAN and, if applicable, a GSTIN.
- Micro businesses must invest up to Rs. 1 crore and turnover under Rs. 5 crores.
- Small units are currently characterized as micro-businesses with a capital investment of up to Rs. 10 crores and revenue of less than Rs. 50 crores.
- MSMEs that have investments up to Rs. 50 crore and less than Rs. 250 crores in annual revenue will hereafter be referred to as medium units.
Udyam registration procedure
Udyam registration is a straightforward process. Remember that signing up for MSME is free. Here is how it works:
Step 1: Check out the official website or portal
You need to start by going to the official Udyam registration website. Select “For new entrepreneurs who are not registered as MSME” from the menu.
Step 2: Enter all your details
Enter personal details like your name, aadhaar number, mobile number, email ID, etc. Now click on “validate & generate OTP”. You’ll receive an OTP on your phone, which you must enter.
Step 3: PAN Verification
You must select the type of business, enter your PAN number, and click “Validate.” PAN Verification Keep in mind that this procedure requires some time.
Step 4: Fill Business Postal Information
Give your business or organization’s postal address. Ensure the accuracy of all the information you provide.
Step 5: Enter the Bank Information
Enter the IFSC code, bank address, and account number for your company.
Step 6: Company Information
Mention your company’s mainstay operation, regardless of whether it is a manufacturing or service business unit.
Step 7: Accept the Declaration and choose the District Industry Center
The process ends here. You must choose the district industry centre in this step from the list supplied there.
You must now click the submit button after accepting the declaration to receive the OTP on your phone. Click the final submit button after entering this OTP. Once the government confirms all your information, you will receive a registration number on the email address you supplied.
Documents Required for Udyam Registration
Documents Required for Udyam Registration for Company
Documents Required of Company
- Company’s PAN Card
- Soft Copy of Registration(CIN) Certificate)
- Soft Copy of MOA and AOA
- Company’s Email id & Phone No.
- Cancelled Cheque
Documents Required of Directors
- PAN Card
- Aadhaar Card
- Email Id & Mobile No.
Documents Required for Udyam Registration for Partnership Firm
Documents Required of Partnership Firm
- Firm’s PAN Card
- Soft copy of Partnership DEED
- Firm’s Email id & Phone No.
- Cancelled Cheque
Documents Required of Partners
- PAN Card
- Aadhaar Card
- Email Id & Mobile No.
Documents Required for Udyam Registration for Proprietorship Firm
Documents Required of Proprietor
- PAN Card
- Aadhaar Card
- Email Id & Mobile No.
- Cancelled Cheque
It’s crucial to remember that the specific requirements could change depending on the type of business entity and the type of business. For comprehensive information, it is advised to speak with a specialist or visit the Udyam registration portal.
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