Udyam Registration is a mandatory process for all micro, small, and medium enterprises (MSMEs) in India. The Ministry of Micro, Small and Medium Enterprises (MSMEs) introduced Udyam registration in 2020 to replace the earlier system of Udyog Aadhaar registration.
The critical details about Udyam Registration:
Eligibility:
All enterprises that fall under the definition of micro, small, and medium enterprises (MSMEs) are eligible for Udyam Registration. The eligibility criteria are based on the investment in plant and machinery or equipment for manufacturing and service enterprises.
Benefits:
The registration provides several benefits to MSMEs, such as access to government schemes and subsidies, credit at lower interest rates, exemption from specific direct tax laws, etc.
Registration Process:
The registration process is online and can be completed through the Udyam Registration portal (https://udyamregistration.gov.in/). The registration requires basic information about the enterprise, including its name, Aadhaar number, and other details.
Registration Fees:
There is no registration fee for Udyam Registration.
Validity:
The registration certificate issued through Udyam Registration is valid for the lifetime of the enterprise. However, the MSMEs are required to update their information on the portal in case of any changes.
Document Requirements:
The documents required for Udyam Registration include the enterprise’s Aadhaar Card of the proprietor/partner/director, PAN Card, and GSTIN (if applicable).
Upgradation:
Udyam Registration allows enterprises to upgrade their registration in case of a change in the investment in plant and machinery or equipment. The upgraded registration certificate will be issued with the same Udyam Registration Number (URN) and Date of Issue.
Importance of Udyam Registration:
Udyam Registration is essential for MSMEs as it helps them to establish their identity as an MSME and avail the benefits provided by the government. It also helps in promoting the competitiveness of MSMEs and improving their creditworthiness.
Udyam Registration for Existing MSMEs:
All existing MSMEs that were registered under the Udyog Aadhaar Memorandum (UAM) before June 30, 2020, are required to migrate to the Udyam Registration portal before the deadline of March 31, 2021. If the MSMEs fail to migrate to Udyam Registration, they will lose their benefits under the government schemes.
Verification Process:
The Udyam Registration portal has a verification process to ensure the registration process is genuine and the details provided are correct. The verification process involves verifying the Aadhaar number of the proprietor/partner/director through the One Time Password (OTP) sent to the registered mobile number.
Udyam Registration Certificate:
Once the registration is complete, the enterprise will be issued a Udyam Registration Certificate. The certificate will have a unique Udyam Registration Number (URN) and Issue date. The certificate can be downloaded from the Udyam Registration portal.
Udyam Helpline:
The Udyam Registration portal has a helpline to assist the MSMEs in case of any queries or issues related to the registration process. The helpline can be reached through email, phone, or chat.
Changes in Udyam Registration:
If there are any changes in the details provided during Udyam Registration, the MSMEs must update the information within the time specified on the Udyam Registration portal. Failure to update the information may lead to a penalty.
Udyam Registration for Startups:
Startups can also register under Udyam Registration, provided they meet the eligibility criteria for MSMEs. The registration provides startups with the benefits and schemes the government offers for MSMEs.
Multiple Registrations:
An enterprise can register only once under Udyam Registration. Multiple registrations under the same PAN or Aadhaar number may lead to the cancellation of the rolls.
Udyam Registration for Branches:
If an MSME has branches in different locations, they can register each site separately under Udyam Registration. However, the registration certificate for each unit will have the same Udyam Registration Number (URN) and Date of Issue.
Udyam Registration for Proprietorship Firms:
In the case of proprietorship firms, the proprietor can register in their name or the business’s name. The proprietorship firm will be issued a Udyam Registration Certificate in the proprietor’s name.
Documents Required:
During the registration process, MSMEs must upload specific documents to verify their identity, business location, and other details. The records required for Udyam Registration include an Aadhaar card, PAN card, business address proof, and bank account details.
Udyam Registration Fees:
Udyam Registration is free of cost and does not require any fees paid by MSMEs. Any website or service provider that asks for payment for Udyam Registration is not authorized by the government and should be avoided.
Udyam Registration for Exporters:
MSMEs engaged in export activities can also register under Udyam Registration. The registration provides them with various benefits, such as priority sector lending, access to export promotion schemes, and marketing assistance.
Udyam Registration for Service Providers:
MSMEs providing consulting, IT services, or other professional services can also register under Udyam Registration. However, service providers’ turnover limit is lower than manufacturing and trading enterprises.
Udyam Registration for Partnership Firms:
In the case of partnership firms, the partners can register in their names or the name of the partnership firm. The partnership firm will be issued a Udyam Registration Certificate in the name of the partnership firm.
Udyam Registration for Companies:
Companies registered under the Companies Act 2013 are also eligible to register under Udyam Registration. The registration provides them with various benefits, such as priority sector lending, access to government schemes, and subsidies.
Udyam Registration for Micro Enterprises:
Micro enterprises are MSMEs with a turnover of Rs.5 crores. They can register under Udyam Registration by providing the required documents and information.
Udyam Registration for Small Enterprises:
Small enterprises are MSMEs with a turnover of Rs.50 crore. They can register under Udyam Registration by providing the required documents and information.
Udyam Registration for Medium Enterprises:
Medium enterprises are MSMEs with a turnover of up to Rs.250 crores. They can register under Udyam Registration by providing the required documents and information.