Starting a business in India involves navigating various processes, but one of the most pivotal steps for small and medium enterprises (SMEs) is obtaining an Udyam Registration Certificate. This certificate not only simplifies your business operations but also opens a multitude of opportunities. In this blog post, we’ll explore the key benefits of securing an Udyam Registration Certificate and how it can serve as a gateway to success and sustainability in the competitive market of India.
What is Udyam Registration
Udyam Registration, formerly known as MSME (Micro, Small, and Medium Enterprises) Registration, is a government registration that provides a unique identity number and recognition certificate to micro, small, and medium enterprises in India. This registration encourages investment and innovation within the small business sector, which is vital for job creation, improving per capita income, and boosting the country's overall economic growth.
Types of Businesses Eligible for Udyam Registration
Udyam Registration is available to micro, small, and medium enterprises (MSMEs) across various sectors in India.
Criteria for MSMEs :
| Enterprise Type | Investment in Plant & Machinery/Equipment | Annual Turnover |
|---|---|---|
| Micro Enterprise | Up to ₹1 crore | Up to ₹5 crore |
| Small Enterprise | More than ₹1 crore and up to ₹10 crore | More than ₹5 crore and up to ₹50 crore |
| Medium Enterprise | More than ₹10 crore and up to ₹50 crore | More than ₹50 crore and up to ₹250 crore |
Entities That Can Apply
• Sole Proprietorships : Individual business owners operating a business on their own.
• Partnerships: Businesses owned and managed by multiple individuals together.
• Hindu Undivided Family (HUF): Businesses run by a family that is undivided and manages assets collectively.
• Private Limited Companies and Limited Companies: Businesses registered under the company laws in India.
• Limited Liability Partnerships (LLP): Businesses where the partners have limited liabilities, meaning one partner is not responsible for another partner's misconduct or negligence.
• Cooperative Societies: Organizations owned and operated by a group of individuals for their mutual benefit.
• Association of Persons: Other types of partnerships in India not necessarily falling under the standard legal definitions.
Essential Steps for Udyam Registration Process
Here’s a step-by-step guide to the Udyam Registration process:
Step 1: Prepare the Necessary Documents
Before you begin the registration process, ensure you have the following:
• Aadhaar Number: Mandatory for Udyam Registration. If the enterprise is a proprietorship, the Aadhaar number of the proprietor is needed. For partnerships, the managing partner’s Aadhaar number is required. In the case of a company, the Aadhaar number of the authorized signatory (like a director) will be necessary.
• PAN Card: PAN is mandatory for all enterprises other than proprietorships.
• Bank Account Details: Bank account number and IFSC code.
•Personal and Business Information: This includes email address, mobile number, social category, business name and address, type of organization, main business activity, NIC 2-digit code, etc.
Step 2: Access the Udyam Registration Portal
Begin by navigating to our dedicated MSME registration page at https://eudyamaadhar.org/ Here, you'll find comprehensive resources and detailed steps to help you prepare for the official Udyam registration.
Step 3: Fill the Online Form
1. Visit our website - https://eudyamaadhar.org/
2. Enter Your Aadhaar Details –
• For new enterprises: Click on the link that says “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II”.
• Aadhaar Verification: Enter your Aadhaar number and the name as per Aadhaar. This step is crucial as it verifies your identity before proceeding with the registration.
3. Validate Your PAN –
• Enter PAN details: Input your business's PAN (Personal Account Number). For proprietorships, the individual’s PAN is used; for other types of organizations, the business PAN must be provided.
• PAN Verification: The system will verify the PAN details automatically. This step is essential for proceeding with the registration process.
4. Fill in Personal and Business Details-
• Owner/Proprietor/Company Information: Provide details such as your name, gender, social category (General/SC/ST/OBC), email address, and mobile number.
• Enterprise Name: The legal name of the business as registered in official records.
• Type of Organization: Select the type of business entity (Proprietorship, Partnership, Company, etc).
• Location of Plant: Address details of all plant locations can be added here.
• Office Address: Provide the main office address, which might be the same as the plant or a different location.
5. Provide Additional Details-
• Previous Registration Details: If previously registered as an EM-II or UAM, or any other MSME registration, those details should be included.
• Bank Details: Enter your bank account number and the IFSC code of the branch where your account is held.
• Major Activity: Select the main business activity of the enterprise, either manufacturing or services.
• NIC Code: Choose the National Industrial Classification (NIC) Code that corresponds to your business activity. This can be searched and selected from the dropdown list provided on the portal.
• Number of Employees: The total number of people employed by your business.
• Investment in Plant and Machinery/Equipment : Mention the amount of money invested in plant and machinery or equipment, which should not include the cost of pollution control, research and development, and industrial safety devices.
6. Submit the Application –
• Declaration and Submission: After filling out all the required fields, click on the declaration checkbox to confirm that all provided information is correct to the best of your knowledge.
• Final Submission:Submit the form. Once submitted, the Udyam Registration number will be generated, and you will receive the Udyam Registration Certificate. This certificate can be downloaded and printed directly from the portal.
By following these steps, you can efficiently complete the Udyam Registration form online, ensuring your business is recognized as an MSME and eligible for various government benefits and schemes.
Udyam Registration Benefits
Udyam Registration offers a multitude of benefits to micro, small, and medium enterprises (MSMEs) in India, designed to support and nurture their growth. Here’s an overview of the key benefits that come with Udyam Registration:
• Priority Access to Government Tenders: Registered MSMEs can access government tenders more easily and are exempt from certain fees or deposits typically required.
• Collateral-Free Loans: Eligibility for collateral-free loans under the Credit Guarantee Fund Scheme, facilitating easier access to finance.
• Subsidy on Patent Registration: A 50% subsidy on patent registration fees, encouraging innovation and technological advancements.
• Overdraft Interest Rate Exemption: Possible exemptions on interest rates on overdrafts provided by banks, helping reduce financing costs.
• Protection Against Delayed Payments: Protection under the MSME Act which mandates timely payments from buyers, including rights to interest on late payments.
• Concessions on Electricity Bills: Discounts on electricity bills, lowering overhead costs for operating a business.
• Eligibility for Government Schemes: Access to exclusive government schemes designed to support infrastructure development, technological upgrades, and more.
• Ease in Obtaining Licenses and Clearances: Facilitated process for acquiring various licenses, approvals, and registrations needed to operate a business.
• Market Development Assistance: Support for marketing products through financial assistance for participating in trade fairs, exhibitions, and international business meets.
• Technology and Quality Upgradation Support: Financial assistance for adopting new technologies and quality standards to improve competitiveness.
• ISO Certification Reimbursement: Reimbursement for expenses incurred in obtaining ISO certification, enhancing business credibility and marketability.