Introduction: Fueling the Indian economy, MSMEs stand as its bedrock. With a democratic ethos and widespread economic participation, the Indian government prioritizes their promotion. This article delves into the intricacies of the MSME Udyam registration process, offering a step-by-step guide for businesses. Beyond the process, we uncover a myriad of benefits, empowering MSMEs with advantages such as interest subvention, protection against delayed payments, and preferential treatment in government

Udyam Registration Process:

After ascertaining the eligibility, one can proceed to the following:

1. Keep ready with the following:

  • PAN of proprietor/managing partner/authorized signatory
  • Aadhar Number of the above
  • Cheque Book with Bank account details-IFSC and Bank account number
  • Address- Block Number to be mentioned in the address
  • GSTIN if required under GST
  • ITR filed details
  • Aadhar linked mobile number, as OTP will be received in this number
  • Email ID

2. Log on to udyamregistration.gov.in: Window will open and fill the basic details:

After verification of Aadhar, PAN verification will be done and then the system will ask details about ITR and GSTIN.

Next, the portal will take you to fill the details of Udyam Registration:

In the above, the MSME will fill the general details. However, while filling the details of address, block number is a must. Another point is filling proper NIC code of manufacturing/service activities. A three stage drop down list is available for filling appropriate NIC code.  The last stage is the income tax and other details in point number 20 and 21. This will be enabled after verification of Income Tax Department.

The point number 22 will ask for interest in registration with GeM portal. It is advised to tick it, as it will enable the MSME to sell its products or services on huge number on the GeM portal.

The point number 23 is asking for interest in registration on TReDS Portal. It is an electronic platform facilitating MSMEs to finance or discount trade receivables. It uses auction mechanism for sellers, promoting competitive rates from multiple financers.

Tick the other points in Yes, particularly point 26 as it will enable you to get free .in domain and business email ID.

After submission, a Thank You message will appear.

 Some Points to remember:

1. Udyam registration is free and paperless and self-declaration basis.

2. After completion of the process of registration, a certificate is generated online and a unique identity number known as “Udyam Registration Number” will be issued.

3. This certificate has a dynamic QR code, from which the web page on the Portal and details about the enterprise can be accessed.

4. Only one Registration of Udyam can be done. But more activities can be added in registration.

5. There is no need for renewal of the certificate.

There are certain activities which are not eligible for registration.

NIC code-1 for crop, animal production with exceptions

NIC Code 02- Forest and Logging

NIC Code 03 – Fishing and aquaculture

NIC Code 92- Gambling and betting activities

NIC Code 97 – Activities of households as employees for domestic personnel

NIC Code 98- Activities of private households for own use

NIC Code 99 – Activities of extraterritorial organization and bodies

1. There is no option of offline filing of application

2. All business units under same PAN will be treated as one enterprise and turnover and investment figures for all of such units will be considered together for aggregate values.

Benefits of MSME Udyam Registration:

1. Interest subvention: Registered MSMEs get a 2% per annum interest relief on new loans or increased working capital, calculated from the disbursement date or scheme announcement whichever is later.

2. Protection against delayed payments: Buyers must settle payments within 15 days or by the agreed date. Delayed payments beyond 45 days incur compound interest, triple the RBIs specified rate.

3. Trade Receivables Discounting System (TReDS): It is an electronic platform facilitating MSMEs to finance or discount trade receivables. It uses an auction mechanism for MSME sellers, promoting competitive rates from multiple financiers.

4. Preference in Government procurement: Registered MSMEs enjoy preferential treatment in government procurement, providing them an advantage in competing for government contracts and tenders.

5. Under (Credit Linked Capital subsidy for technology upgradation) CLCSS MSMEs can avail the capital subsidy for plant and machinery which helps them to upgrade their technology and machinery.

6. Training and mentorship: Under ESDP, MSMEs receive training programmes, campaigns and financial assistance for activities which enhances entrepreneurial and technical skills.

7. Timely payments by buyers: Samadhan portal introduced by government tackles MSME payment delays, empowering businesses to file complaints against tardy buyers for prompt resolution and improved financial stability.

8. Marketing and promotion: PMS scheme provides support to individuals MSEs in domestic trade fairs, providing budgetary assistance. It also funds domestic and international trade events.

9. Free ISO certification: The authorities will not charge MSME-registered businesses any ISO certificate fees if they submit an application to the appropriate authority with their registration certificate.

10. ZED certification: MSMEs can avail assistance up-to 75% of certification cost maximum subsidy up-to INR 50,000.

11. Collateral free loans: MSMEs can access collateral-free credit up to Rs. 200 Lakhs from Eligible Institutions, with an initial fee on the Guarantee Cover and subsequent annual fees on the outstanding amount.

Conclusion: Unlock the full potential of your MSME through the Udyam registration process and harness a plethora of benefits offered by the government. From financial advantages to preferential treatment in procurement, this comprehensive guide empowers businesses to thrive in the competitive landscape.

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In case you have any concern and queries or need any support in MSME Udyam registration/ compliance, you may like to contact us.

Abhinarayan Mishra, FCA, FCS; Managing Partner, KPAM & Associates, Chartered Accountants, Dwarka, New Delhi; +9910744992, ca.abhimishra@gmail.com

Author Bio

Qualification: CA in Practice
Company: KPAM & Associates
Location: South West Delhi, Delhi, India
Member Since: 07 Nov 2023 | Total Posts: 27
The writer is an expert in the areas of compliance and government approvals in India. He writes very often on regulatory matters in areas of DPIIT, RBI, FDI, MCA, International taxation, GST, Valuation-SFA, NRI and other similar areas. View Full Profile

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2 Comments

  1. Kollipara sundaraiah says:

    sir,
    A Doctor maintained a private hospital yearly gross receipts rs:2.50 crores estimated ITR filed every year.
    doubt:
    hospital msme udayam registered mandatory and benefits msme udayam registered

    1. Abhinarayan Mishra says:

      Dear Sir, MSME Udyam registration is optional. This registration is beneficial to those who wish to get governmental benefits, as detailed in my article. In case of business expansion, you should register to get wider audience and higher reputation.
      Thanks
      CA. Abhi Mishra
      9910744992

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