Udyam Registration

Udyam Registration was launched on 1^st July 2020 by the Government of India as a zero-cost online registration process for individuals and MSMEs. Under this initiative, an enterprise shall be known as ‘Udyam’ and the enterprise registration process shall be termed ‘Udyam Registration’. Any individual or MSME who plans to incorporate as an MSME shall file for Udyam Registration on the basis of self-declaration. The registration process if free of cost, however Aadhar card is compulsory for the applicant, co-applicant, partner, director, promoter, or any other business entity.

MSME / Udyam Registration Process & Features

Registration Process

The MSME or Udyam Registration is an online process in which Aadhar Verification with OTP shall be required for New Enterprise who are not yet Registered as MSME.

Step 1: Udyam Registration is an online process in which Aadhar Verification with OTP shall be required to form New Enterprise

Step 2: After the Aadhar Card has been verified, applicants can proceed with Udyam Registration by performing PAN verification.

Step 3: For PAN card verification, applicants are required to select the ‘Type of Organization’ from the drop down, such as Sole Proprietorship, Private or Public Limited Company, Partnership Firm, Limited Liability Partnership, etc.

Step 4: Further, applicants are required to enter their PAN card number to receive the OTP as the final step for Udyam Registration after filling in all the required details.

Step 5: After the registration is complete, the applicant shall receive an e-certificate known to be ”Udyam Registration Certificate”.

What are the fees for Online Udyam Registration?

Udyam Registration is free of cost and there is no need to pay any amount to anyone for Udyam registration. Even the validity of the Udaym Registration Certificate is for the lifetime, so no renewal required of the certificate.

Features of Udyam Registration

• For Online Registration and form download visit: https://udyamregistration.gov.in/
• Udyam or MSME registration is Free of Cost and no fee is to be paid to anyone
• It is paperless and Online process that is based on self-declaration
• No renewal required for this registration
• Aadhar Card number mandatory for MSME registration
• No other proof or documents required for registration
• After registration enterprise will get ”Udyam Registration Number”
• Post registration, enterprise will receive an e-certificate, “Udyam Registration Certificate”
• PAN & GST linked details on investment and turnover of enterprises are linked with Govt. database
• Online system already integrated with Income Tax and GSTIN systems
• e-certificate has a QR Code mentioned from which the enterprise’s details can be accessed

Eligibility Criteria and Guidelines

• Individuals, Startups, SMEs, MSMEs and already registered enterprises under MoMSME
• One registration number for one enterprise, no multiple applications
• From 1st April 2021, PAN and GSTIN are necessary for Udyam Registration
• EM-II or UAM registration or any other registration issued by any authority under the Ministry of MSME, will have to re-register themselves

Documents Required for Udyam Registration

• Duly filled application form
• Passport sized photographs
• Aadhar card and PAN card of applicant, proprietor, partner, director
• MSME certificate
• Bank details of the applicant and business
• Company’s PAN card, GST number and ITR returns
• Any other document required by the authority

How to check Udyam Registration Status?

To check your Udyam Registration Status, you need to follow these simple steps:

Step 1: Visit the official website of Udyam Registration
Step 2: Click on check Udyam Registration Form
Step 3: Enter your Application number, along with your registered mobile number and email address to get an OTP
Step 4: Share the OTP with the representative to assist you in the process
Step 5: Finally, you shall receive the Udyam certificate at your registered email address

Benefits of Udyam Registration

• Reduced Rates of interest from private and public sector banks
• Collateral free loans from lending institutions
• Protection against delay in payment for business owners
• Concession on electricity bills can be availed
• Availability of subsidy from NSIC and credit ratings
• Reservation of good for exclusive manufacturing by MSME & SSI
• Exemption under Direct Tax Laws
• While applying for Govt. tenders, avail exemption
• Get stamp duty and registration charges

Things to Know: For Existing Enterprises

• After 1st July 2020, all existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal
• Existing enterprises registered before 30th June, 2020, shall continue to be valid up to 31st of March, 2021
• An enterprise registered with any other organization under the MoMSME shall register itself under Udyam Registration

New MSME Classification Criteria

Investment in Plant & Machinery/Equipment and Annual Turnover
Classification	Micro Enterprise	Small Enterprise	Medium Enterprise
Manufacturing Enterprises and Enterprises	Investment up to Rs. 1 crore and Turnover up to Rs. 5 crore	Investment up to Rs 10 crore and Turnover up to Rs. 50 crore	Investment up to Rs. 50 crore & Turnover up to Rs. 250 crore

New Composite Criteria for MSMEs already in effect from July, 2020

Since the inception of Udyog Aadhaar from Oct 2015 to June 2020, the exact number of MSMEs registered under the Ministry of MSME were recorded as 102,32,468. MSME’s new definition and further its new registration portal ‘Udyam Registration’ was launched on 1st July 2020. After its launch date and until 31st July 2021, nearly 41,37,443 classified MSMEs are registered on this portal.

Source: http://www.smetimes.in/

Additional Official Web links for Udyam / MSME Registration

• https://udyam.gov.in
• https://msmeregistration.gov.in
• udyamregistration.co.in
• udyamregistration.co.in
• udyamregistration.org
• udyamregistration.com
• udyamregistration.biz
• udyamregistration.in
• udyamregistration.info

Note: As per the data provided by Ministry of MSME, approximately 31.5 lakh entities have registered under Udyam Registration last year. As per the MSME Ministry annual report 2020-21, there were 1.02 crores Udyog Aadhar Memorandum (UAM)-registered MSMEs between September 2015 and June 2020.

Source: Financial Express

Official portal to obtain Udyam Registration Certificate

https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm

Note: Except this portal of Government of India and Government’s Single Window Systems, no other private online or offline system, service, agency or person is authorized or entitled to do MSME Registration or undertake any of the activity related with the process.

FAQs

Q. Is Udyam registration considered the same as MSME registration?

Ans. Yes, Udyam Registration is considered the same as MSME registration, as MSME / Udyog Aadhaar registration has been recently replaced with MSME registration (From 1st July 2020).

Q. Can an enterprise hold more than one Udyam Registration Number?

Ans. No, an enterprise is entitled to apply for only one Udyam registration number. However, the number of activities involved in the business shall be more than one but under one registration number.

Q. Are PAN and GSTIN still required for Udyam Registration?

Ans. Yes, they are still required for Udyam registration and which are pulled automatically from the Government databases as their systems are integrated with Income tax and GSTIN systems.

Q. How many NIC codes can be added to single Udyam registration?

Ans. A maximum of 10 National Industry Classification (NIC) codes can be added in one Udyam registration.

Q. Do all the existing enterprises are required to re-register under Udyam registration?

Ans. After 1st July 2020, all the existing enterprises and companies registered under UAM shall re-register again on Udyam registration portal to get recognition as an enterprise by the Ministry of Micro Small and Medium Enterprise (MoMSME).

Q. Is Registration of MSME / Udyog Aadhaar replaced with Udyam Registration?

Ans. Yes, the registration number of MSME or Udyog Aadhar is replaced with Udyam registration, as it is the new registration process initiated by the Ministry of MSME. New or existing enterprises shall receive a new registration number after new registration or re registering as an enterprise.