/ Business Registration Services

Overview Udyam Registration Process for MSME

Udyam Registration

Overview Udyam Registration Process for Micro, Small, and Medium Enterprises

Udyam Registration process is a streamlined, mandatory online registration introduced by the Ministry of MSME in India. This process, which replaced the Udyog Aadhar Memorandum, began on May 13, 2020, and became mandatory from July 1, 2020, for all MSMEs. The process simplifies the registration for MSMEs by requiring only self-declaration without the need for document uploads.

This process of online registration is self-declaration based, so no documents or certificates are required to be uploaded.

As of July 1, 2020, all entities that fall under the Ministry of Micro, Small, and Medium Enterprises category must undergo Udyam Registration to avail of the associated benefits. The Ministry of Micro, Small, and Medium Enterprises Sector is vital for employment generation and economic growth in India, making Udyam Registration crucial for these enterprises.

By completing the Udyam Registration, Ministry of Micro, Small, and Medium Enterprises can ensure they are recognized by the government and are eligible for various schemes and support designed to enhance their growth and sustainability.

Benefits of Udyam Registration:

Access to Government Schemes :

Eligibility for Schemes: Udyam registration is essential for Ministry of Micro, Small, and Medium Enterprises to access various government schemes provided by the Ministry of MSME. These include:

    • Credit Linked Capital Subsidy: Helps Ministry of Micro, Small, and Medium Enterprises upgrade their technology by providing financial assistance.
    • Credit Guarantee Scheme: Provides collateral-free loans to Ministry of Micro, Small, and Medium Enterprises, reducing the financial burden and risk.
    • Public Procurement Policy: Ensures a certain percentage of government purchases are from Ministry of Micro, Small, and Medium Enterprises, promoting their products and services.
  • Financial Support and Incentives: By registering under Udyam, Ministry of Micro, Small, and Medium Enterprises can tap into these initiatives, gaining financial support and incentives that are crucial for their growth and sustainability.

Seamless Integration

  • Integration with Government Systems: The Udyam portal is integrated with key government systems, such as:
    • Income Tax Portal
    • GST Identification Systems
    • Government e-Marketplace (GeM)
  • Streamlined Processes: This integration simplifies various administrative tasks, allowing Ministry of Micro, Small, and Medium Enterprises to manage financial and tax-related affairs more efficiently.

Priority Sector Lending

  • Special Lending Consideration: Udyam-registered Ministry of Micro, Small, and Medium Enterprises are eligible for priority sector lending from banks, meaning they have better access to credit facilities.
  • Favorable Terms: This access often comes with more favorable lending terms, supporting Ministry of Micro, Small, and Medium Enterprises in their business expansion and investment plans.

Extended MAT Credit

  • Extended Carry Forward: Ministry of Micro, Small, and Medium Enterprises with Udyam registration can carry forward MAT credit for 15 years, compared to the previous 10 years.
  • Tax Benefits: This extension provides significant tax benefits, aiding in better financial planning and long-term stability for the business.

Lower Interest Rates

  • Reduced Financial Burden: One of the most significant advantages of Udyam registration is the ability to secure bank loans at lower interest rates.
  • Competitive Rates: Typically, Ministry of Micro, Small, and Medium Enterprises can avail of loans with interest rates as low as 1% to 1.5%, reducing their overall financial burden and increasing their capacity to invest in business growth and innovation.

Entities Eligible for Udyam Registration:

  • Private Limited Companies & Public Limited Companies
  • Associations
  • Proprietorships
  • LLPs (Limited Liability Partnerships)
  • Co-operatives
  • Other entities as specified

Eligibility Criteria of Udyam Registration:

  • Micro Enterprises:
    • Investment in plant & machinery or equipment should not exceed INR 1 Crore.
    • Annual sales/ turnover should be less than INR 5 crore.
  • Small Enterprises:
    • Investment should not exceed INR 10 Crore.
    • Annual sale/ turnover should be below INR 50 Crore.
  • Medium Enterprises:
    • Investment should not exceed INR 50 Crore.
    • Annual sales/ turnover should be below INR 250 Crore.

Steps for Udyam Registration:

  1. Visit the Udyam Registration Portal:
    • Go to the official Udyam Registration portal here.
  2. Aadhaar Validation:
    • For new entrepreneurs who haven’t registered as Ministry of Micro, Small, and Medium Enterprises, click on the appropriate link.
    • Enter your Aadhaar number & generate an OTP, which will be sent to your Aadhaar-registered mobile number.
  3. Permanent account number Verification:
    • Once the Aadhaar is validated, you will be redirected to the Permanent account number verification page. Enter your Permanent account number details & validate.
  4. Filling in the Details:
    • Provide the necessary details, such as the type of enterprise, industry, investment, turnover, and other relevant information.
  5. File & Receive Udyam Registration Certificate:
    • After completing the form, File it. The Udyam Registration certificate will be sent to your registered email address.

Udyam Registration Certificate

  • The Udyam Registration Certificate is an official document issued to MSMEs in India after completing the Udyam Registration process. The Udyam Registration Certificate is issued online and includes a dynamic QR Code, which provides easy access to all relevant details about the registered enterprise. Udyam Registration Certificate registration helps Micro, Small, and Medium Enterprises avail of various benefits offered by the government, including subsidies, financial assistance, and easier access to loans.

Renewal of Udyam Registration

  • Once a Micro, Small, and Medium Enterprises obtains an Udyam Registration Number, it is permanent and does not require any renewal. This feature eliminates the need for periodic renewals, allowing businesses to focus on growth & development without worrying about renewing their registration.

India Financial Consultancy corporation Pvt Ltd offers expert assistance for obtaining MSME registration. They provide comprehensive support, making the registration process seamless and stress-free. With extensive experience in company registrations and compliance matters, India Financial Consultancy corporation Pvt Ltd ensures that the process is handled efficiently, allowing businesses to focus on their core activities. If you need assistance with Ministry of Micro, Small, and Medium Enterprises Registration or have any specific questions, feel free to reach out to India Financial Consultancy corporation Pvt Ltd or another trusted service provider.

Our areas of specialization encompass:

ROC compliance

  • Company formations
  • Annual filings with the Registrar of Companies
  • Statutory audits
  • Income tax planning and preparation
  • Income Tax Audits
  • GST compliance, including registrations, returns, and refunds
  • Expertise in accounting and bookkeeping
  • Preparation of CMA and project reports for banking purposes
  • Issuance of net worth and turnover certifications
  • Provision of various CA certifications
  • Assistance with licensing and registrations, such as MSME, ISO, FSSAI, IE Code, and registration under 12AA & 80G, among others.

**********************************************************

If this article has helped you in any way, i would appreciate if you could share/like it or leave a comment. Thank you for visiting my blog.

Legal Disclaimer:
The information / articles & any relies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do noy constitute legal advice or legal opinions. The information / articles and any replies to the comments are intended but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as a legal advice or an indication of future results. Therefore, i can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog. You are advised not to act or rely on any information / articles contained without first seeking the advice of a practicing professional.