INTRODUCTION:
The purpose of simplifying the Udayam registration procedure by the MSME Ministry was to make it easier for MSME owners to register their enterprises under Udayam. Its primary goal is to stimulate and facilitate the growth of MSMEs in India and to provide all necessary support to MSMEs as a whole.
Any person who intends to establish a micro, small or medium enterprise can apply for Udyam Registration. Several new entrepreneurs have this question in their minds – “What is Udyam Registration?” Let’s get some things clear! Udyam Registration is a government registration for MSME that provides them a unique Identity Number and a recognition certificate to certify them as micro/small/medium enterprises. The following enterprises are eligible for Udyam Registration:
- Proprietor
- HUF
- Partnership
- Co-Operative
- Private Limited Company
- Public Limited Company
- Self Help Group
- Limited Liability Partnership
- Society
- Trust or
- others type of organization
Any enterprise is eligible for udyam registration either engaged in manufacturing, manufacturing process, maintenance of goods, trading or rendering services.
CRITERIA FOR CLASSIFYING THE ENTERPRISES AS MICRO, SMALL AND MEDIUM ENTERPRISES:
An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely: —
Micro enterprise
where the investment in plant and machinery or equipment does not exceed 1 crore rupees and turnover does not exceed 5 crore rupees
Small enterprise
where the investment in plant and machinery or equipment does not exceed 10 crore rupees and turnover does not exceed 50 crore rupees
Medium enterprise
where the investment in plant and machinery or equipment does not exceed 50 crore rupees and turnover does not exceed 250 crore rupees
NOTE:
A composite investment and turnover criterion applies when classifying an enterprise as micro, small or medium.
If an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or turnover, it will cease to exist in that category and be placed in the next higher category but no enterprise shall be placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.
DETAILS REQUIRED:
1. Aadhaar number is mandatory for obtaining udyam registration. Following aadhaar number is required based on the type of organization
- Proprietorship firm —– Proprietor
- Partnership firm —– Managing partner
- Hindu Undivided Family —– Karta
- Company or a Co-operative Society or a Trust or a Limited Liability Partnership —– Authorised Signatory
2. PAN number of Proprietor required in case of proprietorship/ PAN number of organization in any other cases
3. Bank details of Business —– Copy of passbook
4. GST Number if any
5. Date of the Business commencement
6. No of Employees (With Bifurcation of Male and Female)
7. Self-declared value of investment in plant and machinery or equipment and turnover must be required if no income tax return has been filed till date. Or The latest audited financial statements
8. Location/Address of Plant(s)/Unit(s)
9. Nature of Business
10. Authority Letter/ Board Resolution
11. Company Incorporation documents
NOTE:
- Udyam registration is a self-declaration process so there is no requirement to upload any documents, papers, certificates or proof. However, the aforementioned details are required to complete the Udyam application.
- A permanent registration number will be given after registration i.e. Udyam Registration Number. There will be no need for renewal of Registration. Only you need to update regardless of what changes you have made from time to time. Such as change of address or contact etc.
- No enterprise shall file more than one Udyam Registration. However, any number of activities including manufacturing or service or both may be specified or added in one Registration.
BENEFITS:
1. It provides protection from delayed payments and early resolution of disputes.
2. Upon registration of udyam, your enterprise becomes eligible for priority sector lending from Banks.
3. Enjoy Collateral Free Loans under some specific schemes
4. Get the bank loans at the cheaper rate of Interest
5. Get subsidies from National Small Industries Corporation and other Government entities
6. It will also be useful as a proof for opening a current bank account in most of the banks.
7. Enjoy special 50 percent discount on Government fees for Trademark and Patent
8. Get easy access to government licenses, regulatory approvals and legal registrations
9. Get special preference in Procuring Government Tender
10. Get various tax rebates available for Udyam
FACT SHEET OF MSME (UDYAM) REGISTRATION:
(Facts Dated:- 14/02/2023 10:29:22 AM)
Total Registration 1,41,45,241
Total Classified 1,40,74,021
Micro 1,35,88,911
Small 4,44,839
Medium 40,271
Total Employment 10,11,08,366
CONCLUSION:
In a nutshell, it is essential to obtain Udyam registration for all businesses and you will be benefited. Therefore, get your Udyam registration today. Further, this registration has a lifetime validity and modification is also available. The entire process is online on a website platform that will save you time and money.
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DISCLAIMER: This article is based on the relevant provisions and to the best of my knowledge at the time of preparation of this article and moreover in no event author shall be liable for any direct and indirect result from this article and this is only a knowledge sharing initiative provided solely for information, this article is not a professional advice or recommendation.
AUTHOR: CS JINAL SHAH, JINAL SHAH & CO. Company Secretary in Practice from Surat, Gujarat and for any query feel free to contact me on jinalshahco@gmail.com or 9173610133.
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