Udyam registration: Going to the above topic, first we have to know about the Udyam registration and the MSME because the MSME plays a key role in understanding the udyam registration and the need for this registration.
MSME works under the ministry of MSME which is micro, small, and medium enterprises. The need of this MSME ministry is to facilitate small-scale enterprises or companies by several means.
This ministry was founded under the MSMED act 2006, and the head office of this ministry is in New Delhi.
so the MSME ministry helps the small-scale business owners to get registered under this.
MSME ministry has several criterias, before the registration applicants should know these criterias these are the revised criterias of the MSME :
The micro-enterprises: the enterprises or the companies whose investments are below the Rs 1 Cr and the annual turnover should be below Rs 5 Cr, these companies come under the micro-enterprises.
For the small enterprises: the business or the companies whose investment in the firm is below Rs 5 Cr and the yearly turnover is less than Rs …… Cr, these firms come under Small enterprises.
For the Medium enterprises: here the yearly investment of the enterprises should be below Rs …..Cr and the annual turnover should be not more than Rs …….Cr
According to the above criterias, the firms or the companies can register their enterprises accordingly.
Now, the MSME ministry introduced a special type of registration which is Udyam registration/MSME registration, it is nothing else but a government registration that provides you benefits in different ways. I will tell you more about the Udyam registration.
Udyam registration: As I said that it is a registration provided by the government and a certificate along with a unique number is provided under it that certifies your business or the enterprises.
The main intention of the government behind the Udyam registration is to facilitate the small-scale businesses or companies by several means and provide the enterprise’s many benefits and advantages.
Also, Read – Udyam registration for partnership firm.
Eligibility for the registration :
enterprises that are engaged in manufacturing/production/processing/preservation of goods and providing the services to the consumers, these enterprises are eligible for the Udyam registration.
We can say it in another sense that the enterprises that are involved in selling, importing, and exporting the goods.
Before applying for this registration we should know the benefits of Udyam registration in detail :
If the enterprises get registered under udyam registration then they are eligible for the government benefits and they get the many advantages under the Udyam registration. the benefits are :
- They are privileged to get government tenders.
- registered enterprises can take bank loans at a very low rate.
- several tax rebates for the Udyam registered enterprises.
- registered enterprises can get licenses, approvals, and registration easily.
- They are also eligible for subsidies on tariffs, tax, capital, etc.
These are the prominent and key benefits for the registered enterprises that really help the enterprises in operating their business.
Any company’s owners who want to establish an enterprise like micro, small and medium enterprises need to register online on the Udyam registration portal, they do not provide any kind of document or paper, only the aadhar card is required for the whole process. It is fully based on self-declaration with no need to upload documents or papers and any kind of certificate.
On being registered, an owner will be provided a permanent number which is called the “udyam registration number”.
After the completion of the registration process, the enterprise is provided an E-certificate on the portal which is known as the “ Udyam registration certificate”. for the registration, you are provided a form on the Udyam registration portal”.
here you do not need to pay any money for the process. Aadhar number you are required to present, it is mandatory for the registration. If it is a proprietorship firm then the proprietor of the firm is required to give the radar card number and if it is a partnership firm, cooperative society, or the trust then the managing director of the company or the firm is required to give the radar card number.
no enterprises are required to file more than one Udyam registration. Any activities which include the manufacturing or the service sectors or both can be specified in one udyam registration.
one more thing I need to know is that if the enterprises present the wrong information about themselves on the Udyam registration portal then for such activities they will be liable for the penalty under the IPC act.
Process of Udyam registration online, stepwise it is given below
- first, you go to the official website of MSME, then tap on “for new registration”
- Now here you will see a tab where you have to enter your aadhar number and the owner’s name, after entering this click on the “validate and generate OTP ” button.
Remarks: if it is a proprietor firm the proprietor has to provide the aadhar details and in case if it is a partnership firm/trust or cooperative society the managing partner have to give the aadhar details.
- Here you have to enter the PAN details if the enterprise belongs to the LLP/AUTHORISED SIGNATORIES etc then they shall provide the PAN and GSTIN for the registration. and they have to validate this on the portal.
- here you give the complete details of your postal address along with the mobile no and email address
- give the details of the bank with the IFSC code.
- now provide the enterprise details and activities of the operation.
- select the district where this enterprise belongs and then tap on “ submit and get
- after entering the OTP that you have received on your registered mobile no or the email address you have chosen, click on the “final submit”.
- After the final submission, you will get an E- registration document on your registered email ID.
These are the complete process of the registration on the Udyam registration portal online, using these steps applicants can easily register their enterprises online.