What is Udyam Registration?

What is Udyam Registration? Udyam Registration is the official procedure of identification of Micro, Small, and Medium Enterprises (MSMEs) by the government in India. It has been launched by the Ministry of Micro, Small and Medium Enterprises as a replacement for the earlier procedure of Udyog Aadhaar with the intent of making the process easier for businesses to become identified as MSMEs. After registration, businesses are allocated a unique identification number and digital certificate, opening a whole new world of benefits like easy access to credit, government scheme eligibility, and preference in government tenders.

Who is Eligible for Udyam Registration?

Any business entity-be it a proprietorship, partnership, limited liability partnership (LLP), private limited company, or even a trust or society-who is engaged in manufacturing or service operations can opt for Udyam Registration. The eligibility is determined based on two main criteria: investment in plant and machinery or equipment and turnover per annum. Micro enterprises are those enterprises that have an investment of ₹1 crore or below and a turnover of ₹5 crore or below.

Small enterprises have an investment of ₹10 crore or below and a turnover of ₹50 crore or below, while medium enterprises have an investment of ₹50 crore or below with turnover of ₹250 crore or below. It should be pointed out that the majority of agricultural pursuits and some trading enterprises are not embraced under this scheme.

Also Read: how to update mobile number in udyog aadhar

Documents Required for Udyam Registration

One of the biggest advantages of Udyam Registration is its paperless, self-declaration-based process. However, you’ll need the following information and documents handy:

Aadhaar Number: Of the proprietor in case of proprietorship, or managing partner/director in case of partnership or company.
PAN Card: Either of the business entity or the individual, depending on the business structure.
GSTIN: If your business is registered under GST, you’ll need to provide this.
Business Address: Details of the business location.
Bank Account Details: Including account number and IFSC code.
Basic Business Information: Such as the type of organization, number of employees, nature of business activity (manufacturing or services), and investment/turnover details.
No hard copies are required to upload; you just need to enter the details correctly.

Also Read: how to update udyog aadhar to udyam

Step-by-Step Udyam Registration Procedure

Reach Official Portal: Begin by opening the government’s Udyam Registration portal (https://udyamregistration.gov.in).
Select Registration Category: Determine whether you are a fresh entrepreneur or already have EM-II or UAM registration.
Aadhaar Verification: Provide your Aadhaar number and name. Your registered mobile number will receive an OTP to verify.
Enter PAN and Business Details: Enter your PAN, organisation type, and other important business details. The portal will fetch some information from government databases automatically.
Fill in Additional Information: Enter details like business address, bank account, NIC code for business activity, number of employees, and investment/turnover figures.
Self-Declaration and Submission: Verify your information, fill in the self-declaration, and submit the application.
Certificate Generation: Upon successful submission, you’ll receive a unique Udyam Registration Number and an e-certificate on your registered email. This certificate contains a QR code for instant verification.

How Long Does the Process Take?

The whole process is made fast and easy. If all information is entered in the right way, you can finish up the registration in 10-15 minutes. The digital certificate is usually issued and emailed to you within 2 to 4 working days.

How Much Does Udyam Registration Charge?

Understanding What is Udyam Registration is completely free of charge. The government does not require any fee for registration, and no payment to consultants or agents is required. Be cautious of unofficial websites or agents who request payment for this process.

Also Read: how to change bank details in msme

Key Benefits of Udyam Registration

Access to Government Schemes: Registered MSMEs are eligible to obtain subsidies, incentives, and assistance under different central and state government schemes.
Easier Credit: Banks and financial institutions prefer giving loans to MSMEs and charging lower interest.
Protection Against Delayed Payments: MSMEs are provided with legal protection and interest on delayed payments by buyers.
Preference in Tenders: Government tenders reserve a percentage of contracts for MSMEs.
No Renewal Required: The registration is permanent and does not need to be renewed from time to time.

Also Read: how to check msme registration by gst number

Important Points to Understand What is Udyam Registration

Registration is on the basis of self-claimed data; however, the authorities can check information at any time.
If your business information (such as turnover or investment) changes, you must update your registration on the portal.
Single registration for a single enterprise is permitted, even if the firm works in multiple industries or areas.