Everything you need to know about MSME Udyam Industry Registration (formerly known as Udyog Adhar)
What is Udyam Registration?
The main question in the minds of many novice entrepreneurs is what Udyam registration is. If you are having the same question, then you are at the right place.
Udyam Registration, also known as MSME Registration, is a government registration that is provided with an identity certificate and a unique number. This is to certify small/medium businesses or enterprises.
The central purpose behind launching this facility was to provide a way for the government to maximize the benefits to medium or small-scale enterprises or industries in India, which are registered by MSME through their Aadhaar card number.
The owner, director or owners of the organization will provide their 12-digit Aadhaar number. This is a mandatory guideline whether the sole owner of the enterprise or organization, LLP, private limited company or anything else. It should contain the certificate of identity provided by the MSME registration process.
Who can get Udyam registration?
Let’s clarify a few things! Institutions that are eligible for enterprise registration are either for Trading or production or processing or for preserving goods or providing services. In other words, merchants who buy, sell, import or export goods are not even eligible to apply for venture registration.
But you should know that in order to get MSME registration, you have to meet certain criteria to classify an entity as a medium, small or micro-enterprise.
As per the current notification,
Types of industries (for manufacturing or service sector, both)
Micro undertaking : Investment up to Rs 1 crore and turnover up to Rs 5 crore
Small scale industry : Investment up to Rs 10 crore and turnover up to Rs 50 crore
Medium industry : Investment up to Rs 50 crore and turnover up to Rs 250 crore
Udyam Adhar registration process
The process of Udayam registration is very simple and the process of filling up the form is also very simple. The system is a kind of revival today, and it seeks relatively less information than the old process. It is important to note that MSME registration is free and there is no official fee for issuing website registration certificates.
Documents required for Udayam registration?
- The MSME registration process is completely online, paperless and based on self-declaration.
- No documents or proof is required to register MSME.
- Only Aadhaar number will suffice for registration.
- PAN and GST linked details on investment and turnover of undertakings will be taken automatically from the government database.
What are the benefits of registering as an entrepreneur?
One will get many benefits after registering his business and registering as an entrepreneur. The best thing about getting Udayam registration is that the process is quite simple and besides, one does not have to handle documents to get Udayam registration. See top benefits:
- Udyam registration helps in getting government tenders
- Udyam makes bank loans cheaper because interest rates are much lower (up to 1.5% lower than interest on regular loans)
- Various tax rebates are available for Udyam
- It is easy to get licenses, approvals and registrations regardless of the area of business. Businesses registered under Udyam are highly preferred for government licensing and certification.
- They can easily get loans at low-interest rates
- Registered industries get tariff subsidy and tax and capital subsidy
- Registration helps reduce the cost of patenting or setting up an industry. Many discounts and concessions are available.
- It is also beneficial for opening a current account in banks
About Us
We hope you enjoy reading this article. At Alliance Tax Experts, we provide consulting services to new businesses, start-ups and private limited companies. We specialize in company registration and licensing, accounting and GST compliance, income tax filing and compliances.
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You can contact our founder Santosh Patil on 9769 201316 or email him at santoshpatil@alltaxfin.com.
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