Udyam Registration, also known as MSME Registration, is a new way for small and medium-sized businesses to get registered. It started on July 1, 2020, by the Ministry of Micro, Small & Medium Enterprises. When a business goes through this process, it becomes known as Udyam, and the registration is called Udyam Registration. After registration, the business gets a permanent number and a certificate.
Before July 2020, there was a different registration called Udyog Aadhaar, but now it's replaced by Udyam registration. This new process is easier. Udyam registration is important because it allows businesses to access benefits from the Ministry of MSME.
What is Udyam Registration?
Udyam registration is a must-have certificate from the Ministry of Micro, Small, and Medium Enterprises. When small and medium businesses sign up on the government's official website, they get this certificate. It comes with a special twelve-digit number called Udyam registration number (URN). This number helps them get government benefits, discounts, and special offers.
Loans without the need for collateral and with lower interest rates from banks and financial institutions.
A simpler process for getting licenses, permits, registrations, and approvals.
Discounts of up to 50% on trademark and patent registration fees.
Getting ISO certification fees reimbursed.
Not having to pay government security deposits when bidding for tenders.
Discounts on water and electricity bills, and protection against late payments for your goods or services.
Tax & Process
Udyam registration is open to enterprises in the trading, manufacturing, and service sectors that meet the specified threshold limits.
Before registering your business with Udyam, it's advisable to review the list of eligible and ineligible activities on the Udyam registration portal.
Micro Enterprises: Those with machinery, plant, or equipment investment below Rs. 1 crore and turnover below Rs. 5 crore.
Small Enterprises: Those with machinery, plant, or equipment investment below Rs. 10 crore and turnover below Rs. 50 crore.
Medium Enterprises: Those with machinery, plant, or equipment investment below Rs. 50 crore and turnover below Rs. 250 crore.
Udyam Registration is an online process that relies on self-declaration.
No document uploads are required during the application process.
Applicants need to provide their 12-digit Aadhaar Number.
PAN details are also required for registration.
Bank Account details of the business must be furnished.
These details are essential for completing the registration.
The process is straightforward
Step 1: Visit the official Udyam registration website (https://udyamregistration.gov.in/).
Step 2: Click on the 'For new entrepreneurs who are not registered yet as MSME or those with EM-II' button.
Step 3: Enter the Aadhaar number and the enterprise owner’s name on the next page.
Step 4: Validate the Aadhaar number using the OTP received on the linked mobile number.
Step 5: Provide essential enterprise details, including its name, type, location, and PAN, as prompted.
Step 6: Fill in bank account details, including the account number and IFSC code.
Step 7: Enter the NIC code and other necessary information related to the enterprise's main business activity.
Step 8: Verify the details and submit the application.
What is the NIC code used for in Udyam Registration?
The NIC code is a government-provided business code used to monitor business activities within the micro, small, and medium enterprises.
How many NIC codes can be added during Udyam registration?
During Udyam registration, you can add a maximum of 10 NIC codes.
Who is eligible for Udyam registration?
Udyam registration is open to anyone planning to establish a micro, small, or medium enterprise and can apply online.
Are traders eligible for Udyam registration?
Initially, Udyam registration only covered manufacturing and service industries, excluding trading businesses. However, in July 2021, the government extended the classification to include wholesale and retail trade, allowing such businesses to register.
Can one have two Udyam registrations?
An individual or enterprise proprietor cannot have more than one Udyam Registration. If an entrepreneur operates multiple enterprises under different names, these activities should be specified or added to a single Udyam Registration. Additional activities can be included by selecting the 'Update Details' option on the homepage.