A recent announcement by the MSME department says that from July 1, 2020, Udyam Registration will replace UDYOG AADHAAR.
Why do you need to register with Udyam?
Udyam Registration: What is it? is a question that a lot of start-ups have.
MSMEs are recognized as micro, small, and medium enterprises through the Udyam Registering, commonly known as MSME Authorization. MSMEs receive a Unique Identification Number (ID) and a registration license that identifies them as these entities. In addition to bringing numerous benefits to MSME firms in India, this launch pursued a number of secondary goals.
This facility was designed to provide a mechanism by which the government could provide the greatest benefits to small-scale and medium-sized businesses and industries registered as MSME through their Aadhaar number identification.
Owners, managers, and operators of the entity must provide their Aadhar Numbers. No matter what sort of business entity it is–a sole proprietorship, a partnership, a private limited company, etc–this is a must. MSME enrolment should be supported by a letter of approval.
Who can register for Udyam?
Set the record straight! Eligible companies for Udyam Enrolment are those engaged in manufacturing, processing, producing, or storing commodities, or those that provide services.
You should also understand that a business has to meet a variety of conditions in order to qualify as a medium, small, or micro-enterprise and receive MSME enrollment.
Udyam Registration is authorized for the following categories of businesses based on current announcements:
- Companies with a turnover of 5 crores and investments of up to 1 crore.
- With an annual turnover of between 5 crores and 75 crores and up to 10 crores in investments.
- Firms with an annual turnover of $25 million to $250 million and investments of up to $50 million.
Registration for Udyam requires documents
- Number of Permanent Account
- Certification for GST
- Copy of Aadhaar for entrepreneurs
- Category: Social
- No. of phone
- Information about e-mail
- Date of the Certificate of Incorporation
- Bank account number and IFSC code
- Number of employees
- Statements of Audited Accounts
- The nature of business
How do you handle a discrepancy or complaint?
The General Manager of the respective District Industrial Centre will conduct an investigation to verify the facts of an Udyam Enrolment made by a firm in case of disagreement or dispute.
In that case, forward the matter to a state government board member, superintendent, or director of industry, who may amend the details or strongly suggest canceling the Udyam Certification to the Ministry of Micro, Small, and Medium Businesses, after issuing a notice to the enterprise and allowing it to present its case.
Udyam Enrollment Stages
Udyam Enrolment is a simple process, as is completing the forms. Unlike in the past, the system today gathers much less data than before. The MSME licensing is free, and the online portal does not charge a fee to produce certifications.
The world today is a lot easier and more efficient. An overview of how to get Udyam Registration under the MSME program can be found here.
Stage 1, visit the website –
Your first stop for online licenses will be the Udyam Registration portal. For start-ups who haven’t been registered as an MSME, click “For Start-ups.”
Stage 2: Fill in your personal information –
As a first step, you will need to provide your name and Aadhar number. Select “Verify & Generate pin” as your next step. This pin will be sent to the enrolled mobile number. Enter it.
For proprietorship firms, the Aadhaar numbers of the proprietor, the managing partner, and a Karta are required; for Hindu Undivided Families (HUFs), the Aadhaar number of the proprietor, managing partner, or Karta; for the registration of new enterprises, you must provide a duly signed certificate if you are a corporation, limited liability company, cooperative society, society or trust.
Stage 3, Approval of PAN –
Then enter your PAN number and verify. Verification of the PAN takes place.
This is the authorized signatory to the Company or LLP registration, Society registration, or GST registration, as well as his PAN.
Step 4: Fill in the Correspondence – Relevant data
Having complete all information aforementioned, the next bit of information you’ll need to submit is the company’s, enterprise’s, or entire entity’s postal address. In addition to your company’s location, zip code, postal code, and phone number, we also include your company’s postal code and postal code.
Step 5: Fill in your bank account information
It will be necessary to provide your active bank account number as well as the IFSC code of your bank. The IFSC code of the branch in question can be found on the website if you don’t know it.
Stage 6 – Information about business activities
Specify your company’s mainline operation from the “services” or “industrial production” categories. The total number of employees and the National Industry Classification (NIC) codes must be given under Activities.
In the last step of the process, you must enter how much money you invested in your machinery or plant (in lakhs).
Stage 7: Accept the Declaration and select a District Industry Centre –
In the final step of the process, you will select the district industry center from the drop-down list. You then have to approve the declaration and click “Submit and Get Final Pin.”
When you have entered the pin you received on your phone, click the “Final Submit” button.
A registration number will be generated after you click the ‘Submit and Get Final Pin’ button. Once the government has confirmed all of your information, an E-registration document will be forwarded to your email address.
Udyam Enrollment Benefits
- Getting registered makes it easier to accept public contracts.
- Due to enrollment, borrowing becomes more affordable.
- Udyam is entitled to several tax incentives.
- The requirements for obtaining permits and certifications vary based on the industry.
- Those listed receive priority licensing and authentication.
- A low-interest rate and low-cost loan is offered by the company.
- A number of reductions and allowances are available to you.
Keep the above aspects in mind when registering an Udyam in India.