Table of Contents
What is Udyam Registration?
Udyam registration is a free, paperless, self-declared online registration process to easily register Micro, Small, and Medium-sized Enterprises (MSMEs) as legal entities in India.
Upon completing the Udyam registration, an enterprise receives an e-certificate known as the Udyam registration certificate, which includes a unique, permanent 16-digit alphanumeric Udyam registration number.
Related Read About: MSME Registration in India
Features of Udyam Registration
1. Unique Registration Number
Upon successful registration, each business receives a unique registration number, providing it with a distinct identity within the MSME sector.
2. Digital Registration Certificate
A digital registration certificate is available online, allowing businesses to easily access and download it from anywhere, enhancing convenience and accessibility.
3. No Renewal Necessary
Udyam Registration is a one-time process, eliminating the need for frequent renewals and simplifying administrative tasks for business owners.
4. Free Registration Process
The registration process is completely free, making it accessible for small and medium enterprises without financial constraints.
5. Tax Systems Integration
The Udyam portal integrates both income tax and GST systems, simplifying tax compliance and reporting, and ensuring that businesses can easily manage their tax obligations.
Eligibility for Udyam Registration
To be eligible for Udyam registration, a business must meet the following criteria:
- Be a Micro, Small, or Medium Enterprise (MSME).
- Be a legal entity, such as a sole proprietorship, partnership firm, limited liability partnership, or another legal entity.
- Meet the following investment and turnover limits:
Enterprises Type |
Investment Limit |
Annual Turnover Limit |
|
Micro Enterprises |
Up to ₹1 crore |
Up to ₹5 crores |
|
Small Enterprises |
Up to ₹10 crores |
Up to ₹50 crores |
|
Medium Enterprises |
Up to ₹50 crores |
Up to ₹250 crores |
Documents Required for Udyam Registration
1. Aadhaar Card
Relevant Aadhaar details under the following scenarios:
1. The proprietor’s Aadhaar number in case of Proprietorships
2. The managing partner’s Aadhaar number in the case of a Partnership
3. The Karta’s Aadhaar number For Hindu Undivided Families (HUF)
4. The Aadhaar number of the authorized representative of the organization For Companies, LLPs, Cooperative Societies, Societies, or Trusts
Related Read: How to Link Aadhaar to PAN Card?
2. PAN Card
The company’s Permanent Account Number (PAN) card.
3. Business Registration Proof
Relevant documents proving the legal status of the business:
1. Partnership deed in case of a partnership.
2. Certificate of incorporation in the case of a company.
3. Registration certificate or other proof In the case of a sole proprietorship.
4. Business Address Proof
Business address proof such as
- Electricity bills
- Telephone bills
- Property tax receipt
5. Investment Details
Information regarding the investment in plant, machinery, or equipment, including invoices or purchase orders to validate the investment amount.
6. Turnover Details
Financial statements or turnover details of the business to validate the annual turnover.
7. Bank Account Details
The business’s bank account number, along with the IFSC code, is required for financial transactions.
8. GSTIN Details
Goods and Services Tax Identification Number (GSTIN) details must be submitted if the business is registered under GST.
Related Read: How to Get GSTIN Number Online?
What is the Udyam Registration Process? A Step-By-Step Guide
STEP 1: Visit the Official Udyam Registration Website
Go to the official Udyam Registration Portal to begin your registration process.
STEP 2: Select Your Entrepreneur Status
If you are a new entrepreneur yet to register as an MSME or if you already hold an EM-II, choose the appropriate option from the homepage.
STEP 3: Enter Aadhaar Details for Verification
Provide your Aadhaar number and the business name as it appears on the Aadhaar card. Click the “Validate & Generate OTP” button to proceed with the Aadhaar verification.
STEP 4: Verify Your PAN Number to Check Validity
Next, enter your PAN number and click the “Validate” button to verify your PAN.
STEP 5: Fill in Additional Information Required
After verifying your Aadhaar and PAN, complete the additional information section. This includes selecting your organization type, specifying business activities, providing your address and bank details, and entering other relevant information. Ensure all details are accurate and up-to-date.
STEP 6: Review and Submit the Form After Completion
Once you have filled out the form with all necessary information, review it carefully before submission. After submitting, you will receive a unique registration number and a certificate. The certificate will include a QR code, allowing access to your enterprise’s details.
Benefits of Udyam Registration
The following are the benefits of Udyam Registration according to Office of Development Commissioner Ministry of MSME:
1. Access to Schemes
Registered MSMEs can tap into various government schemes and subsidies, offering financial support for business growth.
2. Enhanced Credibility
Udyam Registration boosts business credibility, making it more appealing to customers, investors, and partners.
3. Collateral Free Loans
Registered enterprises can obtain collateral-free loans and credit at lower interest rates, easing financial access.
4. Procurement Advantage
MSMEs with Udyam Registration get preferential treatment in government procurement, improving their chances of winning contracts.
5. Simplified Compliance
The registration streamlines regulatory compliance, reducing administrative tasks for businesses.
Conclusion
Udyam Registration is a crucial step for Micro, Small, and Medium-sized Enterprises (MSMEs) in India. It provides a unique identity, simplifies compliance, and opens doors to various government benefits. By registering, businesses can enhance their credibility, access financial support, and improve their chances of success in the competitive market.
FAQs
1. Is Udyam Registration mandatory?
Since July 1, 2021, every eligible MSME in India must undergo Udyam Registration. This registration is essential to access government schemes, tenders, financial aid, and global trade prospects.
2. Who is eligible for Udyam Registration?
Udyam Registration eligibility depends on a business’s size and classification. MSMEs that comply with the investment and turnover limits defined under the MSMED Act, 2006 can register.
3. Is there a fee for Udyam Registration?
There are no charges for Udyam registration.
4. How long does it take to complete the Udyam registration process?
The registration certificate will be dispatched to the applicant’s registered email address within two to four business days.
5. Is there a validity period for Udyam Registration?
Udyam Registration offers lifetime validity from the date it is granted. To keep the registration active, periodically updating the necessary information is important.
