Udyam Registration, formerly known as udyog aadhaar, was created with the intention of streamlining the process that business owners had to go through in order to register their company as an MSME (Micro Small Medium Enterprise).
Before this, the procedure for the same was exceedingly taxing, drawn-out, and busy and called for a lot of documentation. But ever since Udyam Registration entered the scene, a lot has changed and the situation for micro, small, and medium-sized businesses has improved.
If you own a medium, small, or micro-enterprise and haven’t registered your MSME yet, know that you will be eligible to get a number of incentives when you do so through Udyam Registration.
Entrepreneurs used to choose a heterogeneous system under the previous EM-I/II (Entrepreneur Memorandum) system, which before the UAM system.
Some states had their own portals for handling MSME registration, while others used the national platform. Few of them previously relied on manual paperwork.
But with the replacement of the outdated system, a lot has changed.
Udyam Registration: What Is It?
To register small/medium firms or enterprises, the government offers Udyam Registration, sometimes referred to as MSME Registration. It comes with a recognition certificate and a special number.
The main goal of this was to provide a way for the government to award incentives to Indian small- and medium-sized businesses that had registered with MSME and used their Aadhar Card Number.
The 12-digit Aadhar Number of the entity’s owner, director, or proprietor must be provided. It should have received the recognition certificate as part of the MSME registration process.
Process for Registering for Udyog Aadhaar
Udyam Registration is a simple process, and filling out the forms is also not too difficult. It’s crucial to remember that MSME Registration is free, and the website doesn’t collect a formal fee for granting a registration certificate.
Please go to the official website
The first step in registering your business online is to go to the official Udyam Registration website.
It is best to choose the “For new Entrepreneurs who are not yet registered as MSME” option.
Submit Your Personal Data
Type in your special Aadhar number. Then, select “Validate & Generate OTP.” Type in the OTP that was sent to the registered mobile phone.
Verification of PAN
After selecting the organization’s category and entering your PAN, click “Validate.” PAN validation takes place.
Providing Correspondence Information
Please include the organization’s full postal address. Please also mention your company’s district, pin code, state, email address, and mobile number.
Enter the Bank Information
Enter the active bank account number for your company together with the branch’s IFSC code.
Enterprise Information
Mention either the “services” or “manufacturing” as your company’s primary business activity. Include the total number of people employed as well as the activities’ National Industry Classification (NIC) code.
The final field will ask for the total amount of money (in lakhs) that you have spent on your plant or machinery.
Documents Needed to Register for Udyog Aadhaar
You will need a few documents to register. To help you remember them, here is a list:
- Only the Adhaar Number will be necessary for registration.
- An enterprise’s PAN and GST-related data will be automatically retrieved from public databases.
- As of 1.04.2023, PAN and GST numbers must be obtained.
The advantages of Udyog Aadhaar
After registering your firm and acquiring Udyam Registration, you will enjoy a number of benefits. Here are the principal advantages you will appreciate:
- Aids in obtaining government contracts.
- Bank loans are more affordable because the interest rate is so low—up to 1.5% less than that of standard loans.
- For Udyam, there are numerous tax breaks available.
- Regardless of the industry, obtaining licences, permits, and registrations becomes simple. Businesses that have registered with Udyam are given preference when asking for licences and certifications from the government.
- Simple credit access with affordable interest rates.
- Obtain tax, capital, and tariff subsidies.
- Reduces the price of obtaining a patent or the price of establishing an industry. with the aid of the numerous discounts and concessions offered.
Who May Apply
For a business to be eligible for Udyam Registration, it must either be engaged in the production of goods or their manufacture, processing, or preservation. In other words, traders are not even qualified to file for Udyam Registration if they buy, sell, import, or export the commodities.
An organisation must meet the following criteria in order to be classified as a medium, small, or microenterprise and be eligible for MSME registration:
Micro Businesses
1 crore rupees in investment and 5 crore rupees in revenue
Small businesses
Up to Rs. 10 Cr. in investment, and up to Rs. 50 Cr. in revenue
Medium Businesses
Investing up to Rs. 50 crore and making up to Rs. 250 crore
Describe the Udyog Aadhar Memorandum
An Udyog Aadhar Memorandum is a form used to register for Udyog Aadhar. You are unable to obtain an Udyog Aadhar without filing this. a straightforward registration form with a 12-digit number for your records. After your message is successfully sent, you will receive your 12-digit Udyog Aadhar number.
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