Udyam/MSME Registration

Udyam – Overview

Micro, small, and medium-sized enterprises (MSMEs) play a vital role in India’s GDP, employing over 110 million people. Despite this, they encounter growth hurdles. To assist them, the Indian government launched a new classification on 13 May 2020, designating all MSMEs as ‘Udyam’ and making ‘Udyam Registration’ mandatory from 1 July 2020, to offer support and recognition.

Udyam Registration, initiated by the Ministry of Micro, Small, and Medium Enterprises, aims to categorise Indian MSMEs and provide them with rightful benefits. The registration process ensures seamless integration with diverse government databases, including PAN, GST, and IT.

Application Form for Udyam Registration Certificate

It is an online process that requires specific personal and business details, potential fees, and adherence to procedural guidelines. Upon successful submission and approval, the certificate is issued, enabling the benefits allocated to small and medium-sized enterprises in India.

• Online Portal Access
• Aadhaar Number Requirement
• Business Information Submission
• Industry Classification
• Investment and Employee Data
• Document Upload
• Application Fees
• Confirmation Process
• Certificate Issuance

Important Instruction to Fill the Form

• Applicant’s Full Name: Enter the name of the applicant as it appears on the Aadhaar Card.
• Mobile Number: Provide the accurate mobile number of the applicant.
• Email Address: Enter the correct email address of the applicant.
• GSTIN Number: Indicate whether you possess a GSTIN number. If yes, provide the correct GSTIN number.
• Gender Selection: Choose the appropriate gender from the provided options.

• Business/Enterprise Name: Fill in the name of the business/enterprise as you want it to appear on the MSME Certificate.
• Organisation Type: Select the suitable organisation type from the given choices for the MSME Certificate.
• Office Address: Please provide the complete office address.
• Main Business Activity: Choose the primary business activity of the enterprise from the provided options.

Benefits of Udyam Registration

Collateral-Free Loans:Borrowers gain access to loans without collateral from financial institutions.

Streamlined Licensing: Simplified processes for obtaining licenses, approvals, and registrations.

International Trade Support: Special assistance for international trade engagements.

Government Bill Concessions:Discounts on bills, including electricity charges, by the government.

Credit Linked Capital Subsidy: Eligibility for the Credit Linked Capital Subsidy Scheme.

ISO Certification Reimbursement: Reimbursement of fees for obtaining ISO certification.

Payment Protection: Safeguarding against payment delays and service-related issues.

Subsidised Bank Loans: Access to bank loans with lower interest rates and subsidies.

Sector Reservation Policies: Special policies for production and manufacturing sectors.

Direct Tax Exemptions: Exemptions from specific provisions of direct tax laws.

NSIC Performance Subsidies: Subsidies on NSIC performance fees and credit ratings.

Barcode Registration Support: Financial assistance for barcode registration.

Patent Registration Subsidy: Financial support for the patent registration process.

Documents Required for Udyam Registration Online

Here are the documents and details that are typically required the registration:

• Aadhaar Number: The unique 12-digit Aadhaar number of the individual applicant or authorised signatory is essential.
• PAN Card: The Permanent Account Number (PAN) of the business or individual may be required in some cases.
• Business Information: Details about the business including its name, address, type of organisation, and contact details.
• Bank Account Details: Information related to the bank account of the business, including the bank account number and IFSC code.
• Investment Details: Information regarding the total investment in the business, including machinery, equipment, and other capital assets.
• Industry Classification: Specific details related to the industry, such as the main line of business and sector.
• Employee Information: The total number of people employed by the business.
• Other Supporting Documents (if applicable): Depending on the nature and specific requirements of the business, additional documents might be required. This could include licenses, certifications, or other proofs that validate the existence and operation of the business.
• Email and Mobile Number: A valid email address and mobile number for receiving confirmation and communication.

Udyam Registration for Existing MSME Businesses / Enterprises

For existing MSME (Micro, Small, and Medium Enterprises) businesses in India is a transition from the older registration system to a new, streamlined process. This online registration requires the Aadhaar Number, PAN Card, existing MSME registration details, and other specific business information. The transition ensures that existing MSMEs align with the new regulatory framework, enabling them to benefit from special preferences in government tenders, collateral-free bank loans, tax and tariff subsidies, and various other perks. Support and guidance are provided through the official portal to facilitate a smooth transition. Existing MSMEs must adhere to possible deadlines for this transition to avoid losing these benefits and to comply with the updated regulations, fostering continued growth and alignment with government policies.

How to Register MSME Using Udyam Registration Portal?

• Visit the official Udyam Portal.
• Click on ‘Udyam Registration’ for new users or ‘Re-Register’ for existing MSMEs.
• Input the 12-digit Aadhaar number and validate it.
• Fill in personal and business details, including name, type, address, and investment.
• Select the appropriate industry code.
• Provide bank account details and attach any required documents.
• Review all details for accuracy and accept the declaration.
• Click on ‘Submit’ to complete the application.
• Receive the Registration Number (URN) and e-certificate via email.
• Print or save the Registration Certificate.

By following these simplified steps, businesses can register as an MSME through the Registration Portal and access the associated benefits.

Turnover Criteria for Micro, Small and Medium Enterprises

The turnover criteria for classifying Micro, Small, and Medium Enterprises (MSMEs) in India play a vital role in determining their category. These criteria have been established to recognise the different scales of businesses and to provide appropriate support and benefits.

Turnover: Up to ₹5 crores

Turnover: More than ₹5 crores but less than ₹50 crores

Turnover: More than ₹50 crores but less than ₹250 crores

These turnover limits are part of a broader classification system, which may also consider investment in plant and machinery or equipment. The aim is to support businesses of different sizes with tailored schemes, subsidies, and incentives.

Please note that these criteria are subject to change by the government, and it is advisable to consult experts in to get the most accurate and up-to-date information.