Tag: MSME Registration

What is Udyam / MSME Registration?

Ministry of MSME has revised the MSME registration process w.e.f 01st July 2020. It is now known as ‘UDYAM REGISTRATION’.

The Term Udyam is equivalent to Enterprises in English. Hence all the Micro, Small or Medium Enterprises have to obtain UDAYM Registration to avail the benefits of various schemes run by the govt.

MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy.

Scope of Udyam MSME Registration

The Udyam/MSME certification is a registration process for Micro, Small and Medium Enterprises (MSMEs) in India. The scope of Udyam/MSME certification is vast and has several benefits for businesses that fall under the category of MSMEs.

The main advantage of Udyam/MSME certification is that it provides recognition as a registered MSME, which enables businesses to access various schemes, incentives, and support offered by the government. Some of the benefits include:

Collateral-free loans: Udyam/MSME registered businesses can avail of collateral-free loans under various government schemes, which can help them to meet their financial requirements.

Credit Guarantee Fund: The Credit Guarantee Fund Scheme for Micro and Small Enterprises provides collateral-free credit facilities to MSMEs, enabling them to access credit from banks and other financial institutions.

Protection against delayed payments: Under the MSME Development Act, 2006, businesses registered under Udyam/MSME are protected against delayed payments by the buyer.

Access to technology: MSMEs can access technology up-gradation support through various government schemes and initiatives.

Ease of doing business: Udyam/MSME certification also provides various benefits for ease of doing business, such as tax exemptions, subsidies, and various other incentives.

Apart from the above benefits, Udyam/MSME certification also helps businesses to build credibility and enhances their marketability, which can help them to attract more customers and grow their business. Additionally, Udyam/MSME registration is mandatory for businesses that want to participate in government tenders.

Eligibility

Proprietorships, Hindu Undivided Family, Partnership Firm, One Person Company, Limited Liability Partnership, Private Limited Company, Limited Company, Producer Company, any association of persons, co-operative societies or any other undertaking can obtain Udyam MSME registration in India.

Who is not eligible for MSME?

Business Activities not eligible for MSME / Udyam Registration

• • Forestry and logging
  • Fishing and aquaculture
  • Wholesale and retail trade and repair of motor vehicle and motorcycles
  • Wholesale trade except of motor vehicles and motor cycles
  • Retail Trade Except of Motor Vehicles and motor cycles
  • Activities of households as employees for domestic personnel

Guidelines

MSME applies only to manufacturing and service industries with trading companies being excluded from the scheme, as trading companies only are the intermediary between the manufacturer and the consumer.

A person can file for only 1 Udyam with his Aadhar. However, the other activities/ branches related to the enterprise must be mentioned under single Udyam registration.

Registration Validity

It is valid until the owner is alive and the enterprises are functioning. There is a unique 12 digit number for the enterprise which stays with it until it is functioning. This is why the certificate is valid until the enterprise is valid.

Benefits of Udyam MSME Registration

• • Bank Loans (Collateral Free).
  • Subsidy on Patent Registration.
  • Overdraft Interest Rate Exemption.
  • Industrial Promotion Subsidy Eligibility.
  • Protection against Payments (Delayed Payments)
  • Fewer Electricity Bills.
  • ISO Certification Charges Reimbursement.

What type of business comes under Udyam MSME?

• • Micro Enterprises – where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees
  • Small Enterprises – where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees
  • Medium Enterprises – where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.

Any Business having a turnover of or less than Rs. 1.5 Crores is considered a Small Business in the GST Regime and are required to GST Returns Filing & pay taxes but on a quarterly basis. Meaning MSMEs were open to the GST compliance procedures of registration, Return Filing, payments, refunds, returns, etc.

Registration Fee

Registration Process is totally free. No Costs or Fees are to be paid to anyone.

Documents Required for Udyam MSME Registration

1. 1. Aadhar number of the applicant.
   2. Name, gender, PAN number, email id and mobile number of the applicant.
   3. PAN, location, and address of the organization.
   4. A number of employees and the date, you are planning to start your business.
   5. Bank account number and IFSC code.
   6. The basic business activity of the enterprise.

How to apply for UDYAM Registration Online?

You can apply for Udyam registration online, and there is no physical form available for this registration. To apply for UDYAM (previously known as Udyog Aadhaar) registration online in India, you need to follow these steps:

1. 1. Visit the official UDYAM registration portal at https://udyamregistration.gov.in/UA/UAM_Registration.aspx.
   2. Click on the “For New Entrepreneurs who are not registered yet as MSME” option.
   3. Fill out the UDYAM registration form with all the required details, such as personal information, business details, and bank details.
   4. Upload all the supporting documents required with the application, such as proof of identity and address, PAN card, and photographs.
   5. Verify your mobile number and email ID through the OTP (One Time Password) sent to your registered mobile number and email ID.
   6. Submit the completed registration form and documents online.
   7. Wait for the UDYAM administrator to process your application, which can take around 1-2 working days.

If your application is approved, you will receive a UDYAM registration certificate from the administrator, which will allow you to avail various benefits and schemes for MSMEs (Micro, Small and Medium Enterprises) in India.

Post Udyam MSME Registration

A permanent registration number will be given after registration.

After completion of the process of registration, a certificate will be issued online.

This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed.

There will be no need for renewal of Registration.

Get Expert Help!

A knowledgeable and professional consultant has years of experience procuring Udyam MSME Registration, registration process, preparing documents, using proper formats, avoiding common errors and supporting clients and this expertise can certainly help your business. India License connects you with BEST Udyam MSME consultants. People who know what they are doing and do it well. They deliver results. Period.

Top 5 Udyam MSME Consultants in India

How to Find the Right Udyam MSME Consultant?

• • Don’t fall into Free Consultation Trap. Some ask you to add a 5 star review to their fake business listing to make it look legit. Refuse. It will harm others.
  • Don’t trust blindly. Read Business Reviews from others. Seek References – real people with phone numbers. Call them, seek their opinion.
  • Find out if they have an office. Visit their office, meet in person, check credentials before making a decision.
  • Find out if the consultancy business is registered. Make sure, their business is legitimate! If not registered, walk away, period.
  • Avoid, random, work from home, smooth talking, self proclaimed honest story weaver consultants selling Udyam MSME Registration for lowest prices!
  • Take your time. Compare a number of consultants before you make a decision.
  • Don’t make payment till you get your license. Have it all checked, be double sure before you make the payment.

Is it absolutely necessary to find a Udyam MSME consultant?

No, you will find all the relevant information on this website to apply for the Udyam MSME Registration on your own. Of course, it will take some effort and time to go through it, but it will save you good amount of money and also make you smarter. Remember – consultants are people like us. You can do, what they can do. Just go through the information given and apply online. It is not at all difficult.