MSMEs are the spine of the Indian economy in terms of employment, economic development and innovation. The Indian government, under its Single Window System, has started Udyam Registration as the gateway for the official registration of MSMEs. This new system for categorising and registering businesses was started by the Union Ministry of Micro, Small, and Medium Enterprises (MSME) on July 1st, 2020.
To get your business registered in a hassle-free manner and with minimum paperwork and documentation, you can go online and register your firm through Udyam online registration website.
See also: How to get an Income Certificate in India
Classification of MSMEs according to recent guidelines
| Classification | Required Investment (Planning and Equipment) | Annual Turnover |
| Micro Enterprise | Less than Rs. 1 Crore | Less than Rs. 5 crores |
| Small Enterprise | Less than 10 Crores | Less than Rs. 50 Crores |
| Medium Enterprise | Less than 50 Crores | Less than Rs. 250 Crores |
Why does your business need Udyam registration?
There are several advantages if you have Udyam registration for your business:
- You will be able to get loans from banks or other financial institutions without the need for collateral.
- You will be eligible for reduced interest rates on loans.
- The government will be reducing fees for claims related to your business.
- You will get eligible for discounts on electricity costs for your business.
- The National Small Industries Corporation and other governmental organisations will be granting you subsidies.
- You will get reimbursed for expenses incurred in getting ISO certification.
- Your business will be eligible for the excise exemption programme of the Indian government.
- Tax exemptions are easily accessible.
Udyam certificate: Eligibility criteria
An individual who aspires to start a small, medium, or large enterprise can submit an online Udyam registration application. The distinction between businesses in the manufacturing sector and those in the service sector has been eliminated by the government. The only differences now are investment and turnover. As mentioned in the table above, Udyam registration is open to all businesses, new and old.
Important pointers about downloading the Udyam certificate
- If you are looking to establish a micro, small, or medium-sized business, you can apply for Udyam registration on the program’s official website. The entire process is based on your self-declaration, so you don’t need to upload any documents.
- Once you register, you will be given an identifying number which will be used as your Udyam registration number. This number will always exist, and after completing the procedure, you will receive a virtual certification known as an Udyam registration certificate.
- All units with the same PAN number and GSTIN will be considered as one entity. The average of all units will be used to assess the investment and turnover.
- Your self-declaration is valid until March 31, 2021. Going forward, you will need a GSTIN.
- The Udyam registration form is available on the website. There is no registration fee for the procedure. You must have an Aadhaar number here. You can take guidance from the instructions mentioned on the official website.
- If the business is a limited liability partnership, trust, or society, it must provide the Aadhaar and GSTIN information of the designated dignitary.
- Insufficient information will be filled out through a self-declaration if the enterprise registers itself and provides its PAN number.
- Only one Udyam registration is allowed per venture.
- Businesses that provide false information in their self-declaration are subject to the sanctions outlined in Section 27 of the MSMED Act. From July 1st, Udyam registration will be needed for any initiatives that are registered with EM-Part-II or UAM.
How to register for Udyam certificate download
The Udyam portal registration process has been designed to be very simple and straightforward for users. The process of filling out the forms is also very simple and efficient, and registration certificates are issued free of charge by the website.
Here is a very straightforward, step-by-step procedure for obtaining registration under Udyam:
Visit the Udyam website
In order to register your business online, you must go to the Udyam Registration official government website: https://udyamregistration.gov.in/. Once you’re there, select the “New Entrepreneurs Not Registered as MSME” button.
Fill in your personal details
To begin, you’ll need to enter your name and 12-digit Aadhar number into the designated fields. After that, select the “Validate & Generate OTP” button. Doing so will send another OTP to the registered Aadhar mobile number on file. Enter that OTP into the next field.
PAN verification
Before entering your PAN number and selecting the validate option, you must first select the type of organisation. There will be PAN validation for all businesses.
For proprietorship firms, partnership firms, Hindu Undivided Family (HUF), Limited Liability Partnership, societies, companies, trusts, or cooperative societies, the Udyam Registration requires the owner, managing partner, Karta, or authorised signatory, as well as their PAN number and signature.
Add your correspondence details
All of the aforementioned information must be entered before the postal address can be provided. The company’s district, pin code, state, email address, and mobile number will also be needed.
Enter your bank details
In order to set up payment for your company, you will need to submit the active bank account number as well as the branch’s IFSC code to us. The IFSC code is usually located in the bank’s passbook, or it can be found online.
Provide information about your enterprise
You’ll need to state your company’s primary business activity. This can be classified as “manufacturing” or “services” under the NIC Code or National Industry Classification Code.
Once you have this information, you’ll need to report the total number of people engaged in these activities. The next step is to input the total amount of money invested in the plant or machinery.
Select your District Industry Center (DIC)
The next step of the application procedure is to select your DIC from the drop-down list. After accepting the terms and conditions, you can complete the process by selecting “Submit and Get final OTP”.
Declare and submit
Enter the OTP that was sent to the mobile number you registered with, and then click “Final Submit.” You will be given a registration number after clicking the “Submit and Get Final OTP” button. After all of your information has been validated by the relevant authorities, you will receive an electronic registration document at the email address you registered with.
FAQs
Does Udyam registration have a fee?
Officially, there is no cost associated with registering your business on the Udyam portal.
Is Udyam Aadhar the same as Udyam registration?
The improved and streamlined version of Udyog Aadhaar is called Udyam registration.
Is Udyam registration compulsory?
Yes, both new and existing enterprises are required by law to register as Udyams.
When will I receive my Udyam registration certificate?
Once you have submitted all the required information, you will receive your registration certificate via email within 5 working days.