Benefits and Enrolment Criteria Alongside The Registration Process
Delving into it further, by integrating with Udyog Aadhar, MSME along with other government facilities acquired an ID number alongside streamlined access through unique twelve digit identification available Udyog Aadhar through both PAN and GST. Most preferably, those small business enterprises will be eligible under other government schemes to acquire through self declaration. Following the objectives of the Aadhar system, Udyam Registration System enables MSMEs to get facilitated verification through the id's last five included digits.Advantages of Udyam Registration
Udyam registration provides a wide array of benefits for Micro, Small and Medium Enterprises (MSMEs).
- Loans Without Collateral: Provides credit without needing any collateral under programs such as the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
- Subsidy Benefits: With these benefits claim employment subsidies, Qualifying Small Enterprises (QSE) subsidies, or ISO certification subsidized by the government, along with electricity bill subsidization as well as patent registration.
- Tax Benefits: Under taxation, there are some exemptions provided by the direct tax legislation, which include reduced charges for trademark as well as patent registrations.
- Government tender prioritization: Acknowledgments of preference concerning purchasing and no claims of earnest money deposits.
- Protection Relating to Payment Delays: Provides legal assistance with payment obligations via the MSMED Act 2006 providing timely payment guarantees from buyers.
- Simplification of Business: Accessibility to permits, approvals and registrations is greatly streamlined.
- Integration with Government Portal: Undisrupted onboarding with the Government eMarketplace (GeM) allows for small businesses to register as sellers resulting in better market opportunities.
- Eligibility Requirements for Udyam Registration
The following business entities are eligible for Udyam Registration:
- Sole Proprietorships
- Partnership Firms
- Limited Liability Partnerships (LLPs)
- Private Limited Companies
- Public Limited Companies
- Hindu Undivided Families (HUFs)
- Societies and Trusts
Enterprises are classified based on their investment in plant and machinery or equipment and their annual turnover:
| Enterprise Type | Investment (Plant & Machinery/Equipment) | Annual Turnover |
|---|---|---|
| Micro | Up to ₹1 crore | Up to ₹5 crore |
| Small | Up to ₹10 crore | Up to ₹50 crore |
| Medium | Up to ₹50 crore | Up to ₹250 crore |
Guide to Udyam Registration
Step 1: Go to the Udyam Registration Portal
Access the Udyam Registration portal.
Step 2: Provide Aadhaar Information
For proprietorships, the owner’s Aadhaar number with their name must be provided. For other entities, the Aadhaar of the authorized signatory is needed.
Step 3: OTP Verification
OTP will be sent to the mobile number linked with Aadhaar. You must enter the OTP to continue.
Step 4: Business Details Section
Provide the following details:
- Name and category of business
- PAN and GSTIN (if applicable)
- Location and address of the business
- Banking account information
- Primary activity of the business: manufacturing or services
- Total employees
- Expenditure on plant/ machinery or equipment
Step 5: Final Submission
Review all the provided details and submit the application form. After the successful application submission, a certificate will be granted with a unique Udyam Registration Number (URN) along with QR code.
Moving from Udyog Aadhar to Udyam Registration
All businesses that were previously registered under Udyog Aadhar will need to re-register under the Udyam system to access the benefits. This migration provides better alignment with government databases and an optimized user experience.
Conclusion
With the introduction of the Udyam Registration system, there is higher gaurantee on the support given to maximize the MSMEs in India. The registration process has been simplified more than required which provides lot more benefits for growth and innovation. This means they should start taking steps for formalization of business
Head over to the Udyog Aadhar official website for a smooth registration process and a wide range of resources.