A government-provided registration procedure called Udyam Registration attempts to promote and aid India’s small companies. In July 2020, it will take the place of the previous Udyog Aadhaar Memorandum (UAM) registration procedure. Online registration is free, paperless, and available.
All SMEs must register with Udyam in order to get government advantages and incentives. The government has also established particular requirements for SMEs to be eligible for Udyam Registration, such as the turnover cap and investment cap, which must be met in order to be qualified for registration.
Udyam Registration: What Is It?
The Ministry of Micro, Small, and Medium Businesses (MSME) in India launched the Udyam Registration project with the goal of giving the nation’s SMEs a special identity number. This project replaces the previous Udyog Aadhaar Registration registration procedure.
The purpose of Udyam Registration
The goal of Udyam registration is to offer MSMEs a variety of advantages, including:
- Eligibility for numerous government programmes and incentives, including subsidies, low-interest loans, and tax exemptions, that are offered to MSMEs.
- Access to numerous financing choices and credit facilities offered by banks and other institutions.
- Protection under several laws and regulations, including the Public Procurement Policy, which only allows MSMEs to provide specified goods and services.
- Access to a range of development and training opportunities to enhance the skills and expertise of MSME owners and staff.
- Simple business registration and identification can lead to more commercial opportunities and the development of a strong brand.
Udyam Registration Portal: What Is It?
The Government of India has launched the online Udyam Registration Portal to facilitate the registration of micro, small, and medium-sized businesses (MSMEs). This platform, which replaces the previous Udyog Aadhaar registration system, aims to streamline the registration process and encourage MSMEs in India to conduct business more easily.
Businesses can register as MSMEs on the Udyam Registration Portal by giving their Aadhaar number, PAN number, and other essential information. The platform also gives users the ability to submit papers, including the PAN card for the company, bank account information, and ownership records.
The Udyam Registration Number (URN), a special identifying number that the MSME will acquire after registering, will be utilised for all upcoming discussions and referrals with government departments and agencies. There are no fees or renewal requirements to register on the portal.
What are Udyam Registration’s benefits?
The following are some benefits of Udyam Registration:
- Access to many government services is provided by Udyam Registration: Access to different government programmes, including those that offer MSMEs subsidies, incentives, and credit facilities, is made possible via Udyam Registration.
- Simple Loan Access: Due to the registration certificate’s role as evidence of the company’s existence, Udyam Registration facilitates obtaining loans from banks and other financial organisations.
- Reduced Interest Rates: MSMEs that have registered with Udyam are eligible for loans at a lower interest rate than unregistered businesses.
- Legal Defense: The MSMEs are legally protected from late payments by Udyam Registration, which also guarantees that they receive their payments on schedule.
- Government Contracts: Government contracts that are only open to MSMEs can be entered into by registered MSMEs.
- Tax advantages: MSMEs that have registered with Udyam are entitled to a number of tax advantages, such as exemption from direct tax regulations and lower patent registration costs.
- Credibility: Udyam Registration improves MSMEs’ reputation and contributes to the development of customer and supplier confidence.
- Digital Assistance: MSMEs are now able to use a variety of digital venues for marketing and promoting their goods and services thanks to Udyam Registration.
What does the new Udyam registration definition of an MSME mean?
The Udyam registration process, which is based on annual turnover and investments in factories, machinery, or equipment, defines MSMEs. The revised definition is as follows:
Micro Enterprises:Â
- Investment in factories, equipment, and machinery is capped at INR 1 crore.
- Annual revenue less than Rs. 5 crore.
Small Enterprises:Â
- The maximum investment for a plant, machinery, and equipment is INR 10 crore.
- Annual revenue less than Rs. 50 crore.
Medium Enterprises:
- Investments up to INR 50 crore in factories, machinery, and equipment.
- He has an annual revenue cap of INR 250 crore.
The paperwork needed to register with Udyam
The following documents are necessary for Udyam registration:
- Aadhar Card: For Udyam registration, the owner, partner, or director must present their Aadhar card.
- PAN Card: For Udyam registration, PAN card information must be provided for the business, the owner, a partner, or a director.
- Business Address Proof: For Udyam registration, PAN card information must be provided for the business, the owner, a partner, or a director.
- Bank Account Details: The bank account information for the business, including the IFSC code, is necessary.
- NIC Code: The bank account information for the business, including the IFSC code, is necessary.
Suggested Read: Print Udyam Application
