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Udyamregistration.gov.in – Udyam Registration Online for MSME’s

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Udyam Registration

From July 2020, the Union Ministry of Micro, Small and Medium Enterprises introduced a new mechanism to register and classify MSMEs. Known as Udyam registration, it lets new and existing businesses register themselves on the MSME portal.

Following is the classification of such ventures as per the latest guidelines:

Classification

Investment in plant, and equipment

Turnover

Micro enterprise

Less than INR10000000

Less than INR50000000

Small enterprise

Less than INR100000000

Less than INR500000000

Medium enterprise

Less than INR500000000

Less than INR250000000

Eligibility requirements

The Government has removed the difference between enterprises in the manufacturing industry and those in the service sector. The only difference at present is based on the investment and turnover. Any new or existing venture can have Udyam registration as per the table given above.

Documents Required

Copy of the Aadhaar card

Individual / Proprietor / Partners / Directors duly linked with an active mobile number

Copy of PAN card

Individual / Proprietor / Partners / Directors ( linked with Aadhaar

MSME certification

If already registered

PAN card

Of the company

GST number

Of the company

Contact information of the company

Phone number, email ID etc.

Details of the bank account

Of the company or the individual; either savings or current account

ITR statements

Including losses and profits

Information on the units of the company

If the company registration and the name of its units are the same or different. If different, details to be included.

Category of the individual

SC, ST, OBC etc.

Specify the disability

If there is any

Information on the desired status

Either as a manufacturing unit or service provider or as both

Information on employees

Number, details on their gender etc.

Information on the willingness to participate

In the Gem portal

Enterprises types for registration

Below mentioned are the enterprise types for registration that are applicable to service sectors as well as other firms. They are:-

  • Micro Enterprises – For those firms having a turnover between Rs 1 Cr and up to a maximum of Rs 5 Cr
  • Small Enterprises – For those firms having a turnover between Rs 10 Cr and up to a maximum of Rs 50 Cr
  • Medium Enterprises – For those firms having a turnover between Rs 50 Cr and up to a maximum of Rs 250 Cr

Details about the registration process

Any individual planning to start a micro, small or medium enterprise may apply for Udyam registration in the scheme’s official portal. You don’t have to upload any document, the entire process will be based on your self-declaration. Upon registration, the individual is given an identification number. This will be called Udyam registration number. This number is permanent. Upon completion of the process, the applicant receives a virtual certification known as Udyam registration certificate.

All units that have GSTIN (Goods and Services Tax Identification Number) given against one PAN number will be treated as one. The investment and turnover of such units are calculated as the average of all of them.

Your self-declaration is valid only till the 31st of March 2021. From that day, GSTIN is a must.

Udyam registration form is available on its official portal. There is no registration fee for the process. Aadhaar number is a must here. You may do as per the instructions you receive on the portal in this regard. If the venture is a limited liability partnership, trust or a society, it should furnish the details of the authorized dignitary’s Aadhaar and GSTIN.

If the venture registers itself along with the PAN number, a self-declaration will compensate for insufficient information.

No venture is allowed to have more than one Udyam registration.

Any venture that misrepresents information offered in the self-declaration is liable for the penalties given in Section 27 of the MSMED Act. All ventures that are registered with EM–Part-II or UAM are required to have Udyam registration on or after July 1st.

Udyam Registration Process

This process of registration through the Udyam portal is very easy, and further, the form fill-up process is quite straightforward as well. This system has rejuvenated, and also takes less time as compared to the old process which has been discarded. This is essential to understand that this MSME Registration is completely free and there is no charge taken by the website as any fee for issuance of any registration certificates. As things are quite efficient now, here is a very simple step-by-step process for getting registration under Udyam. It is:-

1: Go to the official website – https://udyamregistration.gov.in/

Firstly, to get the business registered online you will need to visit the official government website of Udyam Registration. Next click on the button for new entrepreneurs that are not registered as MSME. You can do this by clicking on the “For new Entrepreneurs who are not registered yet as MSME” button.

2: In the second step you need to enter your personal information –

Initially, a person would be required to input one’s name and their twelve-digit Aadhar number. Next, select the button “Validate & Generate OTP.” After which you would receive another OTP on the mobile number which is registered on Aadhar. Input this OTP.

On a special Note: For all enterprises, the Aadhaar number is mandatory for the Udyam Registration, of the proprietor if he/she owns a proprietorship firm; the partner who is managing if it is a partnership firm; the Karta if it is a Hindu Undivided Family (HUF); the authorized signatory if it is a Limited Liability Partnership, or a Society, Company and or a Trust or Cooperative Society.

3: Verification of PAN

You need to choose the type of the firm and then enter the PAN no then select the validate button. Validation of PAN will take place.

For all enterprises, the Aadhaar number along with the PAN number and signature is mandatory for the Udyam Registration, of the proprietor if he/she owns a proprietorship firm; the partner who is managing if it is a partnership firm; the Karta if it is a Hindu Undivided Family (HUF); the authorized signatory if it is a Limited Liability Partnership, or a Society, Company and or a Trust or Cooperative Society.

Step 4: Adding Details of Correspondence is the next step

Once all the details which are mentioned above are filled in, the next thing which one needs to offer would be the full postal address of this enterprise/company/entity. Further, the info about their district of the company, its pin code, the state, their email address, and the mobile number.

Step 5: Fill up all the Bank Details

One would need to enter their firm’s bank account number which is active along with the IFSC code of that branch in which the account is opened. If one doesn’t have the IFSC code of that branch, you can get it from the passbook of the bank or through its website.

Step 6: Details of the Enterprise

One needs to mention the main activity of their enterprise, it can be “manufacturing” or  “services”. One is required to submit the number of all the persons that are employed under the NIC or National Industry Classification Code for the activities.

Post filling these details, the next thing which is required is to enter the full amount of the money (in some lakhs) which one has invested in the plant or machinery.

 Step 7: Choose the DIC or District Industry Center and approve the Declaration

In the last step of the application process, one needs to select their DIC or district industry center that is available from the drop-down list. One then needs to accept the terms and conditions and then choose the “Submit and Get final OTP” button.

Input the OTP which is sent on the registered mobile number and choose the “Final Submit” button. After clicking on the ‘Submit and Get Final OTP’ button one would get a registration number. After all the information is completely verified by the concerned authorities, one would get an E-registration document that is sent on the registered e-mail id.

Why does one need Udyam Registration?

Having Udyam registration for your venture entitles your business to the following benefits:

  1. You are entitled to collateral-free loans from any bank.
  2. You can request a lower rate of interest for loans from your bank/NBFC.
  3. The government will reduce your charges on claims.
  4. Your venture is eligible for concessions in electricity bills.
  5. You are entitled to receive subsidies from National Small Industries Corporation and other Government entities.
  6. Your business is eligible for reimbursement of the cost involved in obtaining ISO certification.
  7. The Government of India has an excise exemption scheme in place for you.
  8. You avail tax exemptions without any difficulty.

    Read More – MSME Loan

How does the Government offer any support to increase competitiveness in the manufacturing sector?

The Government conducts a National Manufacturing Competitiveness Program to help MSMEs in this regard. Following schemes are there in place to assist new ventures to increase their global competitiveness:

  • Promotion of Information & Communication Tools  in the MSME sector
  • Lean Manufacturing Competitiveness Scheme for MSMEs
  • Design Clinics Scheme for MSMEs
  • Technology and Quality Up-gradation Support to MSMEs
  • Enabling Manufacturing Sector to be Competitive through Quality Management Standards and Quality Technology Tools
  • National campaign for building awareness on Intellectual Property Rights
  • Setting up of Mini Tool Room under PPP Mode
  • Marketing Assistance and Technology Upgradation Scheme for MSMEs
  • Support for Entrepreneurial and Managerial Development of SMEs through Incubators
  • Code under Market Development Assistance scheme

State the process of what one can do in case of complaint or discrepancy

If any discrepancy occurs or if there is any complaint, one can go to the general manager of any of the District Industries Centre through the concerned district who shall be undertaking another inquiry for the verification of these details of the Udyam Registration which is to be submitted by the owner of the enterprise.

After which, the concerned matter would be forwarded with some required remarks to the Commissioner or Director or the Industry Secretary who is concerned with the State Government. He will be issuing another notice to this enterprise and after presenting the case, which is based on their findings, may be corrected or recommended to the MSME Ministry of the Micro, Small or Medium Enterprises, Government of India, to cancel this Udyam Certificate of Registration.

Udyam Registration FAQs:

1. What is the fee for Udyam registration?

Formally, registering your venture on Udyam portal is completely free of cost. But an expert may charge you 1099 for the purpose.

2. Can you explain the difference between Udyog Aadhaar and Udyam registration?

Udyam registration is the new and simplified version of Udyog Aadhaar. Earlier, the process was quite time-consuming.

3. Is Udyam registration a legal requirement?

Yes. Udyam registration is a legal mandate in India.

4. Is Udyam registration mandatory for existing enterprises?

Yes. Udyam registration is legally binding even for existing businesses.

5. Is Udyam registration the same as MSME registration?

Yes, both are the same registration.

6. Is there any provision to renew Udyam registration number?

No. As per the recent guidelines in this regard, Udyam registration number is permanent. You don’t have to worry about renewing it.

7. Are MSME and Udyam registration the same?

Yes. They are the same. Registering here gives you a certification of recognition and an identification number.

8. How many days will it take to get an Udyam registration certificate?

It generally takes four or five days after submitting the application. You receive an email notification with your registration number. At times, the process may take more than 15 days to complete.

9. Is it mandatory that my phone number is linked with Aadhaar when applying for Udyam registration?

Yes. Udyam registration is done using your Aadhaar number. And you will receive an OTP on the phone. You cannot verify your application without an Aadhaar-linked phone number.

10. If an individual is a director of more than one company, can he use his Aadhaar number to apply for Udyam registration?

Yes, an individual is a director of more than one company, he can use his Aadhaar number to apply for Udyam registration


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