Udyam Registration

Udyam Registration

On July 1, 2020, the Ministry of Micro, Small & Medium Enterprises introduced a new registration process for MSME (micro, small and medium enterprises) called Udyam Registration or MSME Registration. From the same day, the Ministry also changed the definition of MSMEs. This procedure is carried out by an organisation called Udyam, and its registration process is referred to as Udyam Registration. Following registration, you will receive a permanent registration number and a certificate of recognition.

Beginning in July 2020, the Udyog Aadhaar registration will become the Udyam registration. In comparison to when Udyog Aadhaar registration first began, Udyam registration has made the process more approachable. The Credit Guarantee Scheme, public procurement policy, an advantage in government tenders, protection against delayed payments, etc. are only a few of the benefits of schemes or programmes offered by the Ministry of MSME that must be eligible for Udyam registration.

Udyam Registration Certificate

Online certificates will be awarded upon the successful completion of the Udyam Registration process. The dynamic QR Code on this Udyam Registration Certificate can be used to access information about the company.

Renewal of Udyam Registration

There is no need to renew registration because the Udyam Registration Number is a perpetual identity number.

Udyam Registration Benefits

It is not necessary to handle any paperwork in order to receive Udyam Registration because the process is so straightforward. The following benefits are available to your business when you have an Udyam Registration:

• Special Preference in Procuring Government Tender
• Udyam registration will help to get the bank loans without Collateral/ Mortgage. 1 % percent Exemption on the interest rate on Bank Overdraft (OD)
• There are various tax rebates available for Udyam registered enterprises.
• Higher preference is provided to businesses registered under Udyam for government license and certification.
• Registered Udyam gets tariff subsidies and tax and capital subsidies
• Concession in Electricity Bills
• It gives protection against the delay in payment from Buyers
• Tax Rebates
• Special 50% discount on Government fees for Trademark and Patent filing
• Fast Resolution of Disputes

Who can apply for Udyam registration?

The Udyam Registration service is available to anyone who wants to start a micro, small, or medium-sized business.

Proprietorships, Hindu Undivided Families (HUF), Partnership Firms, One Person Companies, Private Limited Companies, Limited Companies, Producer Companies, Limited Liability Partnerships, any association of persons, co-operative societies, or any other organisation may get MSME Udyam Registration in India. 

Revised MSME definition – The Atamnirbhar Bharat package

A change in the MSME definition was announced as part of the Atmnirbhar Bharat package on May 13, 2020, 14 years after the MSME Development Act was passed, in order to include additional units in the scope of the announced initiatives. Investment and turnover together with a new upper limit make up the composite criteria for the definition of an MSME in this package. It is no longer possible to distinguish between the manufacturing and service sectors.

• The limit of the Micro units (both manufacturing and services) was increased to Rs. 1 Crore investment and Rs. 5 Crore turnover.
• Similarly, the limits of the small unit also increased to Rs. 10 Crore of investment and Rs 50 Crore of turnover.
• The limits of the medium enterprises were increased to Rs. 20 Crore of investment and Rs. 100 Crore turnover.

For better understanding, go through the table attached here:

When to apply for MSME Udyam Registration registration?

The Entrepreneur has the sole choice as to whether to obtain Udyam Registration. However, in order to take advantage of the many incentives provided by the government, it is advised that the majority of enterprises seek MSME registration as soon as they register.

Documents Required for Udyam Registration Online

No additional documents need to be uploaded as the Online Udyam Registration application process is based only on self-declaration.

All that is required from the application throughout the registration procedure is their 12-digit Aadhaar number, PAN, and business bank account information.

Udyam registration of New Enterprise – Udyam Registration Portal

The new enterprise is required to follow the below steps to register on Udyam Registration Portal:

• The new enterprise is willing to establish itself as an MSME and needs to apply for online Udyam Registration in Udyam Registration Portal.
• The application is based on self-declaration, and there is no further requirement to upload any documents, certificates, papers, or proofs. Udyam registration is free of cost.
• An Aadhaar number is mandatory for obtaining Udyam Registration. Following Aadhaar number is required based on the type of firm

• PAN and GST-linked details on investment and turnover of enterprises will be taken automatically from Government databases.
• MSME online system is fully integrated with Income Tax and GSTIN systems.
• On successful application submission, the enterprise will be assigned a ‘Udyam Registration Number’ (i.e., permanent identity number).
• On completion of the registration process, the enterprise shall be issued an ‘Udyam Registration Certificate.’

Note: It's significant to note that an organisation can only submit one Udyam Registration. Furthermore, a single Udyam Registration can contain a range of business operations, such as manufacturing, services, or both. 

To provide quotes, invoices, track purchases, file GST returns, and create GST eWay bills, you can use IndiaFilings to receive UDYAM registration and LEDGERS Accounting Software