A Step-By-Step Guide For Udyam Registration Certificate

Micro, small, and medium-sized enterprises (MSMEs) heavily contribute to the Gross Domestic Product (GDP) of India. In fact, the sector employs over 110 million people, making India one of the fastest-developing countries worldwide. Yet, these business entities face multiple challenges when it comes to growing horizons. To give them a separate identity, the Indian government allowed each MSME to go for an Udyam registration process.

After July 1, 2020, each Indian MSME is now named ‘Udyam’. Under the Atma Nirbhar Bharat Package, the new definition of MSMEs aims at bringing more companies under the scheme. After receiving the Udyam certificate, the company gets a permanent registration number that becomes its identity as an MSME and becomes eligible to enjoy the associated benefits. The government has a set structure for Udyam registration online, after which the registered organisation automatically starts reflecting in government databases like IT, GST, and PAN. Here is a comprehensive guide for MSME Udyam registration.

Explanation of Udyam Registration

The Ministry of MSME issues an Udyam registration certificate and number that enables small and medium-sized businesses to avail of various government schemes it offers to MSMEs. The Udyam registration process is a zero-fee paperless process. While MSME registration through the Udyam portal is not mandatory, it helps business owners obtain credit at lower interest rates and access tax benefits, government tenders, mentorship, incubation, and other benefits that come with an Udyam certificate. The government replaced the Udyog Aadhaar Memorandum with Udyam registration on July 1, 2020.

Importance of Udyam Certificate for Businesses in India

One of the most significant advantages of getting an Udyam certificate is that if you are an MSME, it provides you access to several government incentives and schemes, including the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Prime Minister’s Employment Generation Programme (PMEGP), and other MSME-supporting schemes at the state level. It helps you avail of the applicable credit facilities, which facilitate your business expansion. Moreover, you can avail of several other benefits like subsidies, tax exemptions, rebates, etc.

Benefits of Udyam Registration

If you are an MSME owner, you can enjoy several benefits after registering your company as an Udyam. These include the following:

• You become eligible to get a government tender after Udyam Aadhaar registration.

• Lending institutions like Hero FinCorp offer Business Loans to registered MSMEs at competitive interest rates.

• Your company can avail of several tax rebates the government exclusively offers to Udyam-registered entities.

• Getting a government approval, license, or business registration becomes easier for you after registration.

• Several capital tax and tariff subsidies are available for businesses registered under the Udyam scheme.

• You may obtain multiple concessions and rebates to set up your industry.

Eligibility for the Registration of Udyam Certificate in India

Registration of the Udyam certificate is open for anyone who wants to register a business in the MSME sector. It includes any entity in the form of a proprietorship, HUF, partnership firm, private limited company, one-person company, limited company, co-operative society, limited liability partnership, or associated persons.

If you are any of these entities, you must fulfil the minimum investment and turnover requirements to apply for MSME Udyam registration. These are as follows:

Required Documents for Udyam Certificate Registration

A few valid documents are necessary for Udyam certificate registration. These include the following:

• Aadhaar card number

• PAN card number

• Business address

• Basic business activity

• Bank account number

• Investment information on plant or equipment

• Turnover information according to the new MSME definition

• NIC 2-digit code

• Partnership deed

• Duplicate copies of sales and buy bills

• Copies of bills and license for the purchased machinery

Udyam Certificate Registration Process

The Udyam registration online process is pretty simple to complete. After completing the process, you will receive the Udyam registration certificate that makes you eligible to enjoy all the Udyam registration benefits mentioned earlier. Follow these steps to register your MSME under the Udyam scheme:

• Visit the official government website for Udyam registration at https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm

• Find the ‘New Registration’ tab on the Home Page and click on it.

• An Udyam registration form will open that you must fill out to apply for the Udyam certificate.

• Enter your PAN card and Aadhaar card number.

• Validate the details by entering the OTP you receive on your registered mobile number.

• Select your business or organisation type.

• Enter your business PAN number associated with your business account.

• Provide other necessary details as required in the form.

• Double-check each detail before submitting the online registration form.

• Enter your mobile number and provide the received OTP to validate the Udyam application.

• Upon successful completion of the application form, you will get a ‘Thank You’ message with your Udyam registration number on your email address and mobile number.

• Finally, you can download your Udyam registration certificate and print it for future reference.

Conclusion

Udyam registration offers several benefits to MSMEs, helping them grow and gain financial stability in the long run. With several challenges you face while running a business, an Udyam certificate helps you smoothly operate the company with the numerous benefits it offers. All in all, Udyam registration using Aadhaar is a positive step to support Indian MSMEs. Alongside, you can learn what an MSME loan is and obtain one from a new-age NBFC like Hero FinCorp to expand your business operations and overcome different challenges.

Frequently Asked Questions

1. Is the Udyam Registration certificate free?

Yes, Udyam registration using Aadhaar is completely free of cost. Moreover, it is paperless, and the registration is based on self-declaration.

2. What is the benefit of the Udyam certificate?

With Udyam registration, you are certified as an MSME and avail of numerous benefits like subsidies, rebates, and tax exemptions.

3. Who is not eligible for Udyam?

Companies involved in forestry, logging, fishing, aquaculture, and activities related to crops, hunting, animal production, etc., are not eligible for Udyam.

4. Is Udyam Registration valid?

Yes, an Udyam certificate is valid for a lifetime.

5. How to Apply for Online Udyam Registration?

Visit the official government website of Udyam Registration and follow the on-screen instructions for Udyam registration online.