Udyam Registration Online: A Gateway to 100s of Benefits
Udyam registration is essential for MSME. MSMEs are micro, small, and medium enterprises that contribute significantly to the country’s economy. There are crores of MSMEs in India. Udyam registration is the process of registering your business as an MSME. Know more about this process below. From Udyog Aadhar to Udyam registration, this blog has got you completely covered!
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They are involved in the manufacturing, services, production, or processing of goods and services. MSMEs have proved to be an essential cornerstone of the economy. Its contribution to the economy of the country cannot be overlooked.
MSMEs generate employment in the nation. It provides jobs and development for the backward and rural areas of India. MSMEs are considered one of the essential elements of the economic environment. They have a huge impact on the manufacturing industry.
Who are MSMEs?
MSMEs are small industries that own comparatively less capital than any other enterprises. The criteria for MSMEs were revised in 2020, increasing the capital requirement to INR 1 crore. Now Micro manufacturing and service units need an investment of Rs. 1 Crore to register. Their turnover should be Rs. 5 Crores. Other industries are defined by the Ministry of Micro, Small, and Medium Enterprises as:
The limit of small units was increased to Rs. 10 Crore of investment and Rs 50 Crore of turnover. Similarly, the limit of medium units was increased to Rs. 20 Crore of investment and Rs. 100 Crore of turnover. The Government of India on 01.06.2020 decided for further upward revision of the MSME Definition. For medium Enterprises, now it will be Rs. 50 Crore of investment and Rs. 250 Crore of turnover.
MSMEs get various benefits that help them manage their business. It creates various opportunities for business development. They get various finances and subsidies. MSMEs get government promotion and support. They receive opportunities that can increase their products’ demand in both the domestic market and foreign markets. The Ministry of MSME facilitates various entrepreneurship testing, development, and training programs for them. They help industries with the preparation of project and product profiles, and they provide technical and managerial consultancy services, too.
Exports are supported by assisting MSMEs. The ministry performs pollution and energy audits for the entities.
Need for registration?
The government of India has taken up various initiatives to support small entities and businesses. Registration of MSMEs is one such initiative. Registration helps businesses to get recognition as MSMEs and gain all the help and benefits from the government.
The government has introduced a new metric for classifying these MSMEs. As per this classification, all MSMEs will be known as Udyam. These Udyam will have to go through a registration process and submit all their particulars. This process is known as Udyam registration. The government has made this registration process mandatory from 1st July 2020. Section 43B(h), too, makes the Udyam registration mandatory.
What is Udyam registration?
The MSME Udyam registration is the process of registering MSME under UAM. Udyam registration is based upon the combined criteria of investment and turnover mentioned above. The Ministry of MSME looks after the Udyam registration process. The ministry has made registration of MSMEs mandatory under notification S.O. 2119(E) dated 26.06.2020. This process applies to both, existing MSMEs and new enterprises. Here are a few features of Udyam registration:
Online procedure:
The registration is carried out on online platforms. The Udyam registration online procedure is a hassle-free online process through the designated portal.
Self-declaration:
The Udyam registration is a self-declaration process. It does not require uploading of any documents.
Title Udyam:
The registration delivers MSME the title Udyam. An e-registration certificate is also provided.
Udyam Aadhar registration:
Udyam registration was earlier known as Udyam Aadhar. Here are a few differences between Udyam registration and Udyam Aadhar:
| Basis for differences | Udyam Aadhar | Udyam registration |
| Date of Launch | September 2015 | July 2020 |
| Registration Process | Longer registration form: The registration form was long and tedious. The form was filed in online mode. The length of form took up time. After Registration: MSMEs received an Udyam Aadhar, also known as aadhar after registration. | Short Registration Form: The registration form was updated and shortened in length. The process is still carried in online mode. After Registration: MSMEs receive an Udyam registration certificate and gain the title of Udyam after registration. |
| Portal | The Udyam Aadhar portal was updated in July 2020. | The Udyam registration portal now handles the entire registration process. |
Udyam Registration Process:
Registration of Udyams is necessary to avail all the necessary benefits. You can register your business on the Udyam Portal by following the steps below:
Step 1:
Visit the Udyam registration portal and click on the new registration tab. You will find this tab on the Home Page.
Step 2:
Select the option appropriate to you.
Users who are not registered on the portal before can choose the New Entrepreneurs option. Users having Udyam Aadhar can select that option.
Step 3:
Start filling out the Udyam registration form. Start by entering your Aadhar card number and PAN card number. Validate them using the OTP sent to your registered mobile number.
Step 4:
Select the category of your business. Enter the PAN number of your business. This PAN should be attached to your business organization.
Step 5:
Fill in all the other mandatory information in the form and submit your form.
Step 6:
Validate your form by entering your mobile number and the OTP received on it. Confirm the completion of the process from your end by checking the ‘Thank You’ message on the mobile number and e-mail ID on the Udyam registration number.
NIC Code for Udyam Registration:
The NIC code is mandatory for Udyam registration msme. The NIC code, that is the National Industrial Classification Code, is a classification based on statistical standards. It aims to create and maintain a database that helps to compare different economic activities. This code determines and evaluates the contribution of a particular economic activity in a nation.
NIC 2008 is designed to be at par with the international system of classification. Check your NIC code before starting your registration procedure. Find the NIC code for Udyam Registration here.
Udyam Registration Certificate
Udyams will receive the Udyam Registration Certificate after verification of your form. Ensure the acceptance of your form by getting our services. Click here to know more.
Udyam certificate registration will help MSMEs claim all benefits enlisted for them.
Udyam Registration Benefits:
Registering your Udyam bestows various benefits on you. Some of them are:
- Collateral-free bank loans
- Easy licenses, registrations, and approvals.
- Subsidy and benefits for registration of patents
- Ease in barcode registration
- Financial benefits on export of goods
- Concessions and discounts on various bills and purchases
- Special reservation policy and more.
FAQs
Where can I find the portal to register my MSME as a Udyam?
You can register your MSME on the Udyam registration portal. Simply search ‘Udyam registration.gov.in’ or ‘Udyam registration gov in’ or click here to jump on the portal.
What are the Udyam Registration fees?
The Ministry of MSME has decided to not charge any registration fees, that is Udyam registration portals do not require any Udyam registration fees. Registration of Udyams is a charge-free process.
