Udyam Registration is an online process introduced by the Indian government to simplify and streamline the registration process for micro, small, and medium enterprises (MSMEs) in the country. It replaced the earlier system of registration known as the Udyog Aadhaar Memorandum (UAM). This article will provide you with a step-by-step guide on how to complete the Udyam Registration online and the benefits it offers to MSMEs.
Introduction
The Udyam Registration is an online registration process launched by the Ministry of Micro, Small, and Medium Enterprises to provide various benefits and support to MSMEs in India. It aims to simplify the registration process and promote ease of doing business for small businesses and enterprises. By registering under Udyam, MSMEs can avail themselves of numerous benefits offered by the government.
Eligibility Criteria for Udyam Registration
To be eligible for Udyam Registration, an enterprise must fall under the definition of micro, small, or medium enterprise as per the MSME Act, 2006. The classification is based on the investment in plant and machinery or equipment and turnover of the enterprise. The updated eligibility criteria for each category are as follows:
- Micro Enterprise: Investment in plant and machinery or equipment does not exceed INR 1 crore, and turnover does not exceed INR 5 crores.
- Small Enterprise: Investment in plant and machinery or equipment is more than INR 1 crore but does not exceed INR 10 crores, and turnover is more than INR 5 crores but does not exceed INR 50 crores.
- Medium Enterprise: Investment in plant and machinery or equipment is more than INR 10 crores but does not exceed INR 50 crores, and turnover is more than INR 50 crores but does not exceed INR 250 crores.
Related Read: Udyam Registration: Making the Process Easier for Small Businesses
Step-by-Step Guide for Udyam Registration
1. Visit the Udyam Registration Portal
To start the registration process, visit the official Udyam Registration portal provided by the government.
2. Provide Aadhaar Details
Enter the Aadhaar number of the authorized signatory or owner of the enterprise. The Aadhaar number will be used for verification purposes.
3. Enter Personal and Business Information
Provide the personal and business details of the enterprise, including the name of the enterprise, type of organization, PAN card details, official address, and contact information.
4. Classify the Enterprise
Select the appropriate category of the enterprise based on the investment and turnover criteria mentioned earlier.
5. Provide Bank Account Details
Enter the bank account details of the enterprise, including the account number, IFSC code, and bank name.
6. Submit the Registration Form
Review the entered information and submit the registration form. Ensure that all the details provided are accurate and up to date.
7. Receive Udyam Registration Certificate
After successful submission of the registration form, you will receive the Udyam Registration certificate via email. This certificate serves as proof of your registration under Udyam.
Also Read: NIC Code for Udyam Registration
Benefits of Udyam Registration
1. Financial Assistance and Credit Support
Registered MSMEs can avail themselves of various financial assistance schemes and credit support offered by banks and financial institutions. These include loans at lower interest rates, credit guarantees, and priority sector lending.
2. Collateral-Free Loans
Under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, Udyam-registered MSMEs can avail themselves of collateral-free loans up to a certain limit, providing easier access to credit facilities.
3. Government Tenders and Subsidies
Udyam Registration enables MSMEs to participate in government tenders and procurement processes. The government also provides various subsidies and benefits exclusively for registered MSMEs.
4. Protection against Delayed Payments
Registered MSMEs can avail themselves of the benefit of the Micro and Small Enterprises Facilitation Council (MSEFC) for settling disputes regarding delayed payments from buyers or clients.
5. Eligibility for Government Schemes and Programs
Udyam-registered enterprises are eligible to apply for various government schemes and programs aimed at promoting the growth and development of MSMEs. These schemes provide financial assistance, infrastructure support, and technology upgradation.
Suggested Read – Empower Your MSME with Udyam Registration Portal: A Step-by-Step Guide
Common FAQs about Udyam Registration
1. What is the validity period of the Udyam Registration certificate?
The Udyam Registration certificate is valid for a lifetime. Once registered, there is no need to renew the registration.
2. Can an existing MSME with UAM migrate to Udyam Registration?
Yes, all existing MSMEs registered under the Udyog Aadhaar Memorandum (UAM) can migrate to Udyam Registration. The migration process is simple and can be done online.
3. Is it mandatory for all MSMEs to register under Udyam?
Yes, it is mandatory for all eligible MSMEs to register under Udyam to avail themselves of the benefits offered by the government. Unregistered MSMEs may miss out on various schemes and support provided exclusively for registered enterprises.
4. Can a single person register multiple MSMEs under Udyam?
Yes, a single person can register multiple MSMEs under Udyam Registration. However, each enterprise must meet the eligibility criteria individually.
5. Can the information provided during Udyam Registration be updated?
Yes, the information provided during Udyam Registration can be updated. Any changes or modifications in the enterprise’s details can be made online through the Udyam Registration portal.
Conclusion
Udyam Registration has simplified the registration process for MSMEs in India, providing numerous benefits and support. By following the step-by-step guide outlined in this article, eligible enterprises can easily complete the Udyam Registration process online. Registering under Udyam opens up opportunities for financial assistance, credit support, government tenders, and protection against delayed payments. It is essential for MSMEs to take advantage of Udyam Registration to unlock the full potential of their business.