On July 1, 2020, the Union Ministry of Micro, Small and Medium Enterprises (MSME) started a new process of registration of MSME companies known as ‘Udyam Registration.’
On the same day, the government revised the definition of MSMEs. More than 88 lakh MSMEs have successfully registered through the Udyam registration portal to date.
Who Should Register for Online Udyam?
Anyone wishing to establish a micro, small, or medium enterprise may do so online through a fully digital and paperless process based on self-declaration.
Udyam Registration Form
Any business enterprise planning to register as a micro, small, or medium-sized enterprise fills out the UDYAM REGISTRATION FORM electronically on the Udyam Registration portal.
The Indian government offers Udyam registration for micro, small, and medium-sized enterprises (MSME). The Indian Ministry of Micro, Small, and Medium Enterprises renamed MSME Udyog Aadhar Registration as Udyam Registration.
Following successful online registration, an Udyam Registration Number (URN) will be assigned; this is a permanent identification number. On completion of online registration, an Udyam Registration Certificate(E-Certificate) with a QR code will be provided.
Documents Required for Udyam Online Registration
The application process for Udyam Registration Online is based on self-declaration, and there is no need to upload any documents, certificates, papers, or proofs.
For the registration process, the user will only need to provide their 12-digit Aadhaar Number, Pan Card, and business bank account details.
After the registration process, an e-certificate called the “Udyam Registration Certificate" is provided. This certificate includes a dynamic QR Code that can be used to access the registration portal's web page as well as information about the enterprise.
Misrepresentation or suppression of self-declared facts and figures appearing in the Udyam Registration or update process is punishable under Section 27 of the Micro, Small and Medium Enterprises Development Act, 2006.
How to Register a Msme Through the Udyam Registration Portal
The new MSME registration process is entirely online, and no documents or proofs are required to register an MSME.
An MSME must apply online for the Udyam Registration form through the Udyam Registration Portal.
The enterprise will be assigned a ‘Udyam Registration Number’ upon successful application submission (i.e., permanent identity number).
The enterprise will be issued a ‘Udyam Registration Certificate upon completion of the registration process.
An aadhaar number is required for udyam registration.
The following points should be noted by businesses that register before June 30, 2020. –
The company that already has a Udyam registration number must update its information online on the Udyam Registration Portal. In the event of a failure, the enterprise's status would be suspended.
The enterprise's classification must be updated based on information obtained from income or goods and services tax returns. The update, if any, and its implications are explained below.
The registration is permanent and serves as the primary identification number for an enterprise; there is no need for registration to be renewed.
Updated Consequences
1) Upward graduation – The enterprise will retain its current status for one year after the end of the registration year.
2) Downward graduation – The enterprise will retain its current status until the end of the fiscal year. The benefits of the new status will be available beginning with the next fiscal year.
Apply for an Udyam Registration Certificate
The application process for an MSME Udyam Registration Certificate is simple and does not require much effort on your part.
Visit udyamregistration.gov.in and register as a fresh user. Make sure you have your Aadhar and PAN cards handy because the website requires these numbers to verify your account.
After entering your Aadhar and PAN details, you will be prompted to validate each of your card numbers by entering the OTP you received on your phone number.
The following step is to select the type of business organisation or enterprise that your company has, as well as the Business PAN number that you have assigned to your business accounts.
Once the verification is complete, the website will ask you to fill out a form with your personal information as well as information about the business or industry you are in. Make sure to thoroughly double-check everything, as a single mistake could result in your form being returned to you.
Following the completion of your form, the website will verify your phone number. After you complete your form, the website will verify your phone number or email address with a final OTP and send your form to the agency for verification.
Once the authorities have verified your form and are satisfied with it, you will be notified. Your MSME Udyam Registration Certificate will be issued, which you can download from the website.
How Can I Download the Udyam Registration Certificate from the Government Portal?
Follow these simple steps to check your Udyam registration status :
- Go to the Udyam Registration portal. – Select the Print Udyam Certificate option. – Enter the Udyam application number.
- Enter the registered phone number or e-mail address to receive the OTP.
- Enter the received OTP into the application form. – Check the Udyam Registration Status and print the Udyam Certificate if it has been issued. Udyam registration certificate download is complete
Benefits of Registration with Udyam
- Simple bank loan of up to 1 crore with no collateral/mortgage
- Preference for Government Tenders
- Buyer payment protection
- Special 50% discount on government fees for trademark and patent
- Fast Dispute Resolution
- Banks will also consider MSMEs for priority sector lending. All bank loans to MSMEs that comply with RBI guidelines are classified as priority sector lending.
- Tax rebates
Read the Instructions Before Completing the Udyam Application Form
1. APPLICANT NAME: applicants are advised to enter their name as it appears on their pan card.
2. MOBILE NUMBER: make sure to give your Indian mobile number
3. EMAIL ID: a valid e-mail id should be required, as it will be used to send the applicant all necessary updates.
4. PLANT ADDRESS: Please enter your complete plant address with state and pin code in the plant address field.
5. OFFICE ADDRESS: the applicant should enter their office address, state, and Pincode.
6. ANNUAL TURNOVER: the applicant must state his/her annual turnover.
7. SOCIAL CATEGORY: the applicant can select their respective categories (general/obc/sc/st).
8. PAN CARD NUMBER: applicants must enter their pan card number.
9. BANK ACCOUNT NUMBER: introduce your bank account number as it is mentioned in the passbook.
10. IFSC CODE: please provide your bank’s IFSC code.
11. DATE OF BUSINESS STARTING: applicants must enter the date on which their business begins, and this date will be mentioned on the certificate.
12. TYPE OF ORGANISATION: the applicant must select the organisation type because it will be printed on the certificate.
13. MAIN BUSINESS ACTIVITY OF ENTERPRISE: select the main business activity of the enterprise (manufacturer/service provider).
14. ADDITIONAL BUSINESS DETAILS: if the applicant wishes, he/she may enter more details about their business.
16. NUMBER OF EMPLOYEES: number of working employees in your organisation.
17. SUBMIT APPLICATION: once the applicant has submitted all of the required information and documents, click on the submit button.
Here are the exact figures you must generate in order for your company to qualify as an MSME –
- Micro enterprises – To be eligible for MSME registration as a micro-enterprise, your company must have an investment of less than Rs. 1 crore and a yield of less than Rs. 5 crores per annum.
- Small enterprises – To qualify as a small enterprise for MSME registration, your company must have an investment of less than Rs. 10 crores and a yield of less than Rs. 50 crore per annum.
- Medium MSMEs – To qualify as a medium enterprise for MSME registration, you must have an investment of at least Rs. 50 crore and a yield of up to, or less than, Rs. 250 crores per annum.
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