Udyam Registration

Udyam registration is a simple yet significant step taken by the Government of India to empower and uplift small business. Formerly known as the Udyog Aadhaar registration, this new process aims to simplify how SMEs register themselves under the Micro, Small and Medium Enterprises Development (MSMED) Act,2006.

The term ‘’Udyam’’ translate enterprise in English, and the Udyam registration symbolises the official recognition of an enterprise under the MSMED Act. This registration applies to enterprises to engaged in manufacturing or production and those providing services. Whether it’s a start up, a small factory or a service provider, Udyam registration is a boon for them all.

Udyam Registration is a free, online initiative by the Ministry of Micro, Small and Medium Enterprises (MSME) in India that allows micro, small, and medium enterprises (MSMEs) to register themselves. A Udyam registration certificate is necessary to obtain loans from banks and benefits provided under various schemes to MSMEs. – The Udyam registration certifies that an enterprise is covered under the MSME category.

Uses of Udyam Registration

Udyam Registration, also known as MSME Registration, is like a special card given by the Government to small and medium-sized businesses in India. This card has a unique number and a certificate that says the company is a micro, small, or medium enterprise.

Salient features

Udyam Registration is open to anyone and can be completed through the portal at Udyam Registration Portal.
The registration process is entirely digital and paperless, with no requirement to upload any documents.
The registration is free of charge, with no fees or costs involved.
Upon completion of the registration process, an e-certificate known as the “Udyam Registration Certificate” will be issued online.
This certificate features a dynamic QR code, allowing access to the enterprise’s details on the Udyam portal.
Any intentional misrepresentation or suppression of information during the Udyam Registration or updating process will result in penalties as outlined in Section 27 of the Act.
The online system is fully integrated with the Income Tax and Goods and Service Tax Identification Number (GSTIN) systems, automatically retrieving details on investment and turnover from government databases. Note that exports are excluded from the turnover calculation.
Only one Udyam Registration is allowed per enterprise; however, multiple activities, including manufacturing, services, or both, can be specified under a single registration.

Registration process

The process is based on self-declaration and doesn’t require uploading documents, papers, certificates, or proof. The online system automatically pulls PAN and GST linked details on investment and turnover from government databases. Requirement for Registration;

Only Aadhar Number is enough for registration
Having PAN & GST number is mandatory from 01.04.2021

Registration benefits

Udyam Registration provides MSMEs with various benefits and opportunities for growth, including access to government schemes, priority sector lending, and tax advantages.

It serves as a permanent registration and basic identification number for an enterprise.
The registration process is paperless and based on self-declaration.
There is no need for renewal of the registration.
MSMEs become eligible for priority sector lending from banks.

Udyam Registration may also help MSMEs avail the benefits of various schemes offered by the Ministry of MSMEs, such as the Credit Guarantee Scheme, Public Procurement Policy, gaining an additional edge in government tenders, and protection against delayed payments.

Eligibility

Udyam Registration is available to enterprises based on their investment in Plant & Machinery or Equipment and their turnover:

Micro Enterprises: Where the investment in Plant & Machinery or Equipment does not exceed ₹1 crore, and turnover does not exceed ₹5 crore.
Small Enterprises: Where the investment in Plant & Machinery or Equipment does not exceed ₹10 crore, and turnover does not exceed ₹50 crore.
Medium Enterprises: Where the investment in Plant & Machinery or Equipment does not exceed ₹50 crore, and turnover does not exceed ₹250 crore.

Enterprises engaged in manufacturing, production, or service provision are eligible to register, including startups, small factories, and service providers.