The government of India is attempting to foster micro, small, and medium-sized business structures by providing them with a viable market in which to develop and conduct business with ease and help.
To simplify things, the Indian government implemented MSME or Udyam registration. Registration ensures that your small or medium-sized firm is both legal and operational.
Any entrepreneur intending/needing to establish a micro, small, or medium firm may file the Udyam Registration form online via the Udyam Registration site utilizing self-declaration, with no prior requirements/formalities to upload any documentation proof.
Following that, each firm is assigned a permanent identifying number known as the “Udyam Registration Number” when it is registered.
After completing the registration process, you will receive an e-certificate titled “Udyam Registration Certificate“.issued.
Micro, small, and medium enterprises can be classified on the following basis:
Micro-Enterprises are ventures with a one-crore investment in machinery and plant and a maximum turnover of five crores.
Small enterprise- Ventures with a machinery and plant investment of Rs. 10 crores and a maximum turnover of Rs. 50 crores.
Medium enterprise- Ventures with machinery and plant investment of Rs. 50 crores and a maximum turnover of Rs. 250 crores.
UDYAM Registration Online Process
The MSME registration process is completely electronic. MSME registration must be completed online via the government web udyamregistration.gov.in. New MSME registration requires both an Aadhaar card number and a PAN number.
MSME registration procedure for new entrepreneurs.
When the “For New Entrepreneurs who are not yet Registered as MSME or those with EM-II” button on the government portal’s site is clicked, the registration page appears, prompting the entrepreneur to enter their Aadhaar number and name.
After entering these information, click the “Validate and Generate OTP Button.” After clicking this button and entering your OTP, you will be directed to the PAN verification page.
Following a successful PAN verification, the Udyam Registration form will appear, and entrepreneurs must fill out the personal information/data and Details about their individual enterprises. To successfully complete the form filling process, an OTP must be produced when the details are entered.
A reference number will be provided, and the Udyam Registration Certificate will be issued within a few days after the MSME registration form has been successfully verified.
MSME registration process for entrepreneurs using an Udyog Aadhar Memorandum (UAM)
When the “For those having registration as UAM” button on the government portal’s homepage is clicked, the user is brought to a page where the Udyog Aadhar Number is entered, along with the option to generate an OTP via mobile or email.
After successfully generating and inputting the OTP, complete the registration data on the MSME registration form. After submitting the information, the Udyam’s registration will be complete.
Documents Required for MSME Registration
The documentation required for MSME registration are listed below:
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The basic business activity
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Please provide your Aadhar and PAN numbers.
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Business address and bank account number.
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COPIES OF bills and permits for purchased machinery
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Investment information (equipment/plant details)
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NIC 2-digit code
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Partnership deed (copy of sales/purchase bills)
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Turnover details (according to the new MSME definition)
You’ll need to reregister. Companies having UAM registration must finish their Udyam registration by June 30, 2022.
If an entrepreneur with a UAM registration does not convert to an Udyam registration by June 30, 2022, the UAM registration will be void, and you will be unable to take advantage of the benefits available to MSME.
MSME Udyam Registration Certificate.
When you submit the MSME registration form online, you will receive a successful registration notification along with a reference number. After verifying the registration form submitted on the internet, the Ministry of MSME will email the entrepreneur an Udyam or MSME certificate. MSME registration certificates are valid for life. Thus, there is no need to update.
Recommended read: Udyam re – registration
Why does one need to register with Udyam?
Having an online Udyam Registration might bring various benefits to your organization—
After registering with Udyam, your company will be eligible for a number of benefits.
You can get collateral-free loans from banks.
Your business may possibly be eligible for National Small Industries Corporation assistance.
Take advantage of the excise exemption system, which will even compensate you for your ISO certification expenditures.
You can request a reduced interest rate on loans from NBFC banks.
With so many benefits, what’s preventing you from registering for Udyam? These simple benefits not only help your business expand, but they also save you a lot of money!
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