Summary: The Udyam Registration, introduced on May 13, 2020, and made mandatory from July 1, 2020, is an essential step for Micro, Small, and Medium Enterprises (MSMEs) in India. This online registration, replacing the earlier Udyog Aadhar Memorandum, simplifies the process by requiring only self-declaration without document uploads. It offers significant benefits, including access to government subsidies, incentives, and lower interest rates on loans. Eligibility is categorized by investment limits and annual turnover, with micro, small, and medium enterprises each having specific thresholds. The registration process involves visiting the Udyam portal, validating Aadhaar and PAN numbers, and filling out the required details. Once completed, the Udyam Registration certificate is emailed to the applicant. The system provides seamless integration with other government platforms, facilitates priority sector lending, and allows extended MAT credit. Entities eligible for Udyam Registration include proprietorships, LLPs, private and limited companies, associations, co-operatives, and others as specified.
The Government of India, to fully utilizing the capabilities and possibilities of growth in the small and medium sector enterprises, introduced the significant step on May 13, 2020, for all the entities covered under the ambit of the scope of Micro, Small and Medium enterprises, must undergo “UDYAM REGISTRATION” process for benefiting the industry and individual working there on it.
On July 1, 2020, with the approval of the cabinet, this is mandatory for all entities to undergo the process of Udyam Registration, who covered in the definition of MSME specified under section 7(a) of MSME Act, 2006. These enterprises primarily produce, manufacture, process, or preserve goods and commodities. The MSME sector is crucial to India’s economy, contributing significantly to employment generation and overall economic growth.
Now what is Udyam Registration /MSME Registration process?
Udyam Registration is an electronic certificate issued by the Ministry of Micro, Small and Medium Enterprises for the entities of our country. It has replaced the earlier “UDHYOG AADHAR MEMORANDUM” registration process. It provides several benefits after getting registered in it. These are:
1. By obtaining the Udyam Registration, the entities will get the government subsidies, incentives and other benefits that provided periodically to the eligible entities.
2. There is no need of uploading any document, certificates or papers during the registration process as it is entirely an self-declaration based application cum registration process.
Eligibility for Udyam Registration Process:
1. Micro Enterprises: Micro enterprises are those whose investment in plant, machinery or equipment does not exceed Rs. 1 crore and their annual turnover is below Rs. 5 crore.
2. Medium Enterprises: Medium enterprises are those whose investment in plant, machinery or equipment does not exceed Rs. 10 crore and their annual turnover is below Rs. 50 crore.
3. Small Enterprises: Small enterprises are those whose investment in plant, machinery or equipment does not exceed Rs. 50 crore and their annual turnover is below Rs. 250 crore.
Process of Udyam Registration process:
1. Visit the Udyam Registration portal.
2. On the home page, in the option of “For new entrepreneur who has not yet registered as MSME”, validate and then generate otp with providing the aadhar number.
3. Once the aadhar get validated on submitting the otp provided on the aadhar registered mobile number, procced to pan verification page.
4. The application form will appear on the screen. Thereafter fill all required details like name of the entrepreneur, mobile number, name of the enterprise, address, status, bank details and others.
5. Provide details like investment in plant and machinery and then generate otp. Click on submit button with filling the otp.
6. You will receive the certificate of Udyam Registration on the e-mail.
There are following documents required for the process of the application are:
1. Pan number
2. Aadhar number
3. GST number (for enterprises)
Benefits of Udyam Registration: There are several benefits provided to the Udyam Registration entities by the government of India are:
1. Access to Government schemes: The first benefits derived from getting Udyam registered entity is to getting advantage from the schemes and subsidy benefits delivered by the Government of India and can effectively running the business with less burden.
2. Seamless Integration: The Udyam portal provide a swamless integrated mechanism with other government sites like Income tax and GST so the Msme entities efficiently complying with the other laws and compliances as required in a timely manner.
3. Priority sector lending: The MSME entities gets the priorities over the other non MSME registered entities when the banks and financial sectors in talks about granting and approving the loan amount and other credit facilities.
4. Extended MAT credit: MSME with Udyam are allowed to carry forward the Minimum alternate tax for the period of 15 years instead of 10 years.
5. Lower Interest rates: One of the most advantageous benefits given to the Udyam Registration entities is to providing loans and credit facilities at the lower rates of interests.
Now the next question raise on the mind is, who can apply for the Udyam Registration. And the answer is that there are following entities are allowed for the registration is:
- Proprietor
- Producer companies
- LLP
- Private companies
- Limited companies
- Association of persons
- Co-operative societies
- Any other as specified.
Author Bio
