29 June 2024
MSMEs have been the backbone of the Indian economy, contributing approximately 30% of the country’s GDP, 45% of manufacturing output, and providing employment to 11 crore of India’s population.
It is therefore imperative for them to be brought under the formal ambit and be recognized by the government to help them grow and thrive. Wondering how do we go about it? To start with, it is crucial for every MSME in India to get certified by the Ministry of Micro, Small and Medium Enterprises by signing up for UDYAM registration. Some are already aware of this, but a lot of new entrants may wonder what this is. Don’t worry. There is no need to be overwhelmed. Through this blog, let’s get into the basics and break it down for you.
Key Takeaways
- UDYAM registration provides a 12-digit unique ID for MSMEs, replacing Udyog Aadhar.
- MSMEs in trading, manufacturing, or services, including sole proprietors, partnership firms, HUFs, or companies, can apply.
- The process is online, paperless, and requires only Aadhar details.
- Benefits include collateral-free loans, lower interest rates, tenders, and tax benefits.
- UDYAM registration is free, with no renewal required, but updates are needed for business changes.
What is UDYAM Registration?
Launched in July 2020, UDYAM registration is a government-issued certificate provided to MSMEs. It is a 12-digit unique identification number that helps in recognizing your business as an MSME. It has replaced the earlier Udyog Aadhar Memorandum Scheme.
With UDYAM registration, you're eligible for an Udyam Loan—a simple way to access unsecured business loans with minimal paperwork and quick approval. Whether you're expanding, upgrading, or managing cash flow, apply todayto fuel your business growth!
Who can apply for UDYAM Registration?
Whether you are a sole proprietor, a partnership firm, a Hindu Undivided Family (HUF), or a company, this registration will be helpful. All trading, manufacturing, and service MSMEs can apply but there is a clearly defined criteria for each category.
| MICRO ENTERPRISES | SMALL ENTERPRISES | MEDIUM ENTERPRISES |
|---|---|---|
| Asset investment of Rs. 1 cr or less with an annual turnover of less than Rs. 5 cr | Asset investment of Rs. 10 cr or less with an annual turnover of less than Rs. 50 cr. | Asset investment of Rs. 50 cr or less with an annual turnover of less than Rs. 250 cr |
Note: For enterprises already registered under EM–Part-II or UAM, they need to re-register on the UDYAM Registration portal.
How to apply for UDYAM Registration?
This online, paperless, hassle-free registration process does not require any documents except for your Aadhar card details. The remaining data will be automatically captured as the portal is completely integrated with the Income Tax and GSTIN systems.
- STEP 1: Visit the official UDYAM Registration portal
- STEP 2: Fill in the application form – Name, Contact Details, Bank Details, Aadhar & PAN, and a bit about your enterprise.
- STEP 3: Submit the form, which will be followed by an online verification through an OTP on your registered mobile number.
Verification Done! Certificate Received! This is as good as having a business license or an official ID card, and the best part is that there are NO FEES or NO RENEWAL required; however, any change in your business will need to be updated on the portal.
What are the benefits of Udyam Registration?
- Credit at lower interest rates
- Collateral-free loans from banks and financial institutions
- Access to government tenders and schemes
- Market development assistance
- Business processes simplified
- Tax benefits, rebates, concessions and other financial aids
- Protection & Dispute Resolution
- Incubation, mentorship, and other support
What to watch out for?
- An enterprise can only have one UDYAM registration.
- Any changes in business details must be updated promptly on the portal.
- The information provided is subject to verification and audit by the government.
Our Take: This straightforward process can significantly enhance business growth and opportunities. Remember, UDYAM registration is not just a certificate; it is a gateway to a brighter future for every MSME business.
So, have you registered your business with UDYAM registration? If not, do it right now and start enjoying its benefits.
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