MSME Udyam Registration Process Everything You Need to Know

A framework has been established by the government to make it simpler for MSMEs to register. The business in charge of this operation will be known as Udyam, and the registration process will be known as “Udyam Registration portal.” You will be given a permanent registration number after completing the registration process.

For Udyam registration, only one registration form is necessary, with the Aadhaar card functioning as the only legal document. In India, the SSI/MSME registration is known as the Udyog Aadhaar. Small Scale Industry Registration is overseen by the Ministry of Micro, Small, and Medium Enterprises. Your company will be eligible to participate in all government-sponsored small business programs and incentives once it has been classified as an SSI.

If a company satisfies the following requirements, it is classified as a micro, small, or medium company:

• a micro-enterprise having capital investment of less than one crore rupees in plant and machinery or equipment and a turnover of less than five crore rupees;

• a small business with annual sales of less than fifty crore rupees and capital investment in plant and machinery or equipment of less than ten crore rupees; and

• a medium-sized company with a revenue of not more than 250 crore rupees and an investment in plant and machinery or equipment of not more than fifty crore rupees.

You’ll receive an online certificate once you’ve completed the registration procedure. A dynamic QR code will be included in this certificate, allowing users to access the Portal’s homepage as well as company information. Your registration will not need to be renewed. The registration process is completely free.

Single-window systems in Champions Control Rooms and DICs will assist the process.

Anyone who wishes to create a micro, small, or medium business may fill out a self-declaration form on the Udyam Registration site without having to upload any documentation, papers, certifications, or evidence.

The New Udyam Registration Process’s Basic Features:

• The MSME/udyam registration process is purely electronic, with no paper involved, and is based on self-declaration.

• There is no need for documentation or evidence to register an MSME; all that is required is an Aadhaar number.

• Government databases will be automatically queried for information on business investment and turnover, as well as PAN and GST-related information.

• The online system will be completely linked with the IRS and GSTN’s respective systems.

• PAN and GSTIN will be required from April 1, 2021.

• Any prior EM-II or UAM registrations, as well as any other Ministry of MSME/udyam registration, must be re-registered using the Udyam Registration system.

• Any prior EM-II or UAM registrations, as well as any other Ministry of MSME/udyam registration, must be re-registered using the Udyam Registration system.

Some of the benefits of enrolling with Udyam are as follows:

• It’s simpler to secure government contracts if you register with Udyam.

• Because the interest rate is so low, bank loans become more affordable as a result of the Udyam (up to 1.5 percent lower than ordinary loans).

• A variety of tax advantages are available to Udyam.

• Because businesses registered with Udyam are given precedence for government licenses and certification, it is simpler to get permits, approvals, and registrations, regardless of the company’s industry.

• They can get financing fast and at a lower rate of interest.

• Tariff, tax, and capital benefits are available to registered msme/Udyams.

• The cost of getting a patent or starting a business is lowered once you’ve registered because of the various discounts and concessions available.

Procedures for New Registration:

• The Udyam Registration portal will offer the registration form.

• For Udyam Registration, an Aadhaar number will be needed.

• The proprietor’s Aadhaar number in a proprietorship firm, the managing partner’s Aadhaar number in a partnership firm, and a Karta number in a Hindu Undivided Families Aadhaar number in a Hindu Undivided Families Aadhaar number in a Hindu Undivided Families Aadhaar number in a Hindu Undivided Families Karta number in a Hindu Undivided (HUF).

• In the case of a corporation, a limited liability partnership, a cooperative society, a society, or a trust, the entity or its authorized signatory must give its GSTIN and PAN, as well as its Aadhaar number.

• Any missing information from prior years when the firm did not have a PAN must be self-declared if the company is legally registered as an Udyam with a PAN.

• Per the firm, there may only be one Udyam Registration.

• In one Udyam Registration, any number of operations, including production, service, or both, maybe defined or added.

• Anyone who willfully misrepresents or seeks to conceal self-declared facts and statistics during the Udyam Registration or update procedure will be punished under section 27 of the Act.

Updates to existing MSMEs’ Udyam registrations:

1. All current firms registered under EM–Part-II or UAM must re-register on the Udyam Registration Portal on or after July 1, 2020.
2. All firms registered through June 30, 2020, will be reclassified as a result of this notification.
3. Existing firms that were registered before June 30, 2020, will have their registrations extended until December 31, 2021.

Suggested Read- Udyam Registration

MSME makes a substantial contribution to India’s economic growth through manufacturing, exports, and employment. They promote industrialization in rural and underdeveloped regions, reducing regional inequalities. Entrepreneurs are encouraged to start and grow their firms by the government’s many programs and incentives for MSMEs.