The Government of India and the Government’s Single Window Systems have authorised Udyam Registration as a gateway to handle MSME registration and other associated tasks. According to the Union Ministry of Micro, Small, and Medium Enterprises (MSME), a new system for categorising and registering businesses officially kicked off on July 1st, 2020. Udyam is the enterprise used for this purpose, and Udyam registration is the procedure for registration.

Who May Submit an Udyam Registration Request?

A person who wants to start a small, medium, or large business can submit an online Udyam registration application.

Upgraded MSME categorization

Following are the criteria used to classify small, micro, and medium-sized businesses.

 What Is the Udyam Registration Process?

Using the procedures below, you may register for Udyam by logging into the government website:

Step 1: Submit an online Udyam registration form

Step 2: Get the Udyam registration number.

Step 3: The Udyam certificate is issued.

The specific steps are described in depth for each section below.

Online Udyam registration applications

Anyone who wishes to start a micro, small, or medium-sized business must submit an online registration application using the Udyam registration site. Self-declaration is required during the registration procedure; there is no need to upload any documentation (documents, certifications, papers, etc.) as evidence.

Obtain your Udyam registration number.

Upon the successful submission of the application, each business receives a distinct Udyam registration number or a permanent identification number.

Udyam certificate issuance

Upon successful completion of the registration process, an electronic certificate known as the Udyam registration certificate is delivered to the business.

What Should I Consider Before Applying for Udyam Registration?

The Udyam certificate registration procedure is pretty simple. However, before applying for the same, you need to keep the following factors in mind.

  • Only the Udyam registration portal hosts the registration form.
  • There is no charge to register for Udyam. Visit : https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
  • The registration process requires an Aadhar number.
  • The proprietor of a proprietary business, the managing partner of a partnership firm, or the Karta of a Hindu Undivided Family must be the owner of the Aadhar number (HUF).
  • If the organisation is a business, cooperative society, trust, or limited liability partnership, the authorised signatory must also submit their PAN and GSTIN in addition to their Aadhar number.
  • If a business has already registered with PAN as an Udyam, it must self-declare the information that is missing for the prior years.
  • Nobody should submit more than one Udyam registration application. During the registration procedure, businesses must list the number of activities they engage in, such as production and service.
  • Someone will be subject to a penalty as outlined in section 27 of the act if they falsely state or omit the self-declared facts and statistics in the Udyam registration site.

What Is the Udyam Registration Process for Existing Businesses?

The Udyam registration site is open to any current businesses that have been registered under UAM or EM-Part-II. After the registration procedure underwent adjustments on July 1, 2020, this rule was created.

Based on the notification, all businesses registered up until June 30, 2020, were reclassified.

The Udyam registration online allows businesses registered with any other Ministry of Micro, Small, and Medium Enterprise organisation to register.

What Advantages Come With Udyam Registration?

By signing up with Udyam, an organisation may take advantage of several benefits. Some of the advantages of submitting a registration request via the portal are listed below.

  • Receive a straightforward bank loan up to INR 1 crore without a mortgage or other security.
  • special preference in government contract purchases.
  • Exemption from the bank overdraft interest rate of 1% (OD).
  • a reduction in power costs.
  • protection against the purchasers’ payments becoming late.
  • Tax return refunds.
  • Government costs for trademarks and patents are discounted by 50%.
  • settlement of issues quickly.
  • Interest rates on loans from the partner bank are lower.
  • the National Small Industries Corporation and other governmental organisations’ subsidies.
  • payment of the expenses incurred in obtaining the ISO certification.
  • Other tax exemptions as well as a special excise exemption programme.

What is the procedure for calculating the registration fee for MSMEs on the Udyam Portal?

Below, we’ll go through how investments in machinery, plant, or equipment are calculated.

  • In accordance with the Income Tax Act of 1961, special preference in the selection of government bids.
  • A new business has never had any ITRs before. Therefore, the investment is dependent on the promoter of the business making a self-declaration. But once it files its first ITR on or after March 31 of each fiscal year, the relaxation period comes to an end.
  • When determining the investment in machinery, plant, or equipment, the costs of research and development, pollution control, industrial safety measures, etc., must be deducted. Businesses may get a notice outlining the terms.

Here is a guide for figuring out MSMEs’ turnover:

The Central Goods and Services (CGST) Act or the Income Tax Act are related to information on an enterprise’s import and export turnover.

Exports of products and services are not included in any enterprise’s (micro, small, or medium-sized) classification-related calculation of turnover.

An organisation without a PAN will have its turnover-related numbers taken into account based on a self-declaration up to March 31 of that specific year. GSTIN and PAN, however, will be required after the fiscal year is ended.

When Can I Expect to Receive My Udyam Certificate?

After applying, it typically takes four to five days to receive the Udyam certificate. Once the e-certificate is issued, the business will get an email notice with a registration number. The procedure might, however, occasionally take more than 15 days to complete.