What is Udyam Registration? Its Eligibility and Benefits

MSME is an acronym for Micro, Small & Medium Enterprises which had a long process of Udyog Aadhar for Registration which has been changed into Udyam Registration, launched on July 1^st 2020 to replace that long process of Udyog Aadhar.

Udyam Registration is the means for micro, small and medium enterprises to connect themselves with the government via an official registration process. Through this Registration, such type of enterprises gets a certification and Unique Identification Number (UIN). This Udyam Registration is the latest Initiative which is very beneficial for entrepreneurs dealing in small businesses.

In order to contribute to the digitalization of India, the Udyam Registration is an improvised and latest tech system introduced by the Ministry of MSME to add to the growth of MSME and support all micro, small & medium businesses in India.

This Udyam registration also widely Known as MSME Registration includes a Recognition Certificate and a Unique Identification Number. Also, it is Optional if you want to specify whether your business is legal and operational.

Generally, it takes around 1 to 2 weeks to generate Udyam Certificate after Udyam Registration Number has been generated.

Eligibility Criteria for Udyam Registration:

Enterprises must be meeting certain eligibility Criteria to apply for Udyam Registration:

• Must be micro, small or Medium Enterprise
• Micro enterprises are eligible with a turnover up to INR  5 Crores.
• Small enterprises with a Turnover from INR 5 Crores to 75 Crores
• Medium enterprises with a Turnover from INR 75 Crores to 250 Crores
• Micro Enterprise must not have an investment of more than INR 1 Crore. While for Small enterprises the limit is INR 10 Crores and for Medium Enterprises must not exceed INR 50 Crores.

Key Steps to take note of while applying for an Udyam Registration:

Applicants must apply for Registration through an Online medium on the Udyam Registration Portal. After the Registration has been made, a Unique Identification Number and E-certificate is to be issued. Respectively, they are known as Udyam registration Number and Udyam Registration Certificate.

Furthermore, such enterprises must meet fixed criteria in order for them to be classified as either the micro, small or medium enterprises for acquiring the MSME Registration.

Benefits of Udyam registration for Micro, Small or Medium Businesses:

Every MSME may proceed to register their enterprise with the Government and apply through the easiest way via the online portal provided by the Ministry Officially. The enterprises would be able to avail of various benefits granted by the Ministry of MSME very often.

Some of the benefits are specified below:

• Discount Offer on IDFC FIRST Bank
• Subsidy on Patent Registrations and Industrial promotions.
• The benefit of availing of Overdraft and Interest Rate Exemption.
• The ISO Certification Charges, if any, Could be reimbursed.
• Relief on Electricity
• Privileges to have the upper hand while seeking Government Tenders.
• Privileges to avails of Government licenses, Regulatory approvals and Legal registrations
• Exemption benefit under Direct Tax Law

In addition to these, there are many more privileges.

Documents (of the enterprise) for Registration:

1. PAN
2. Aadhaar Card of Entrepreneur
3. Contact Number
4. Fax Number
5. Email Address of the Enterprise
6. Date of Commencement of the Business
7. GST Certificate
8. Bank Passbook Copy
9. List of employees, male or female respectively
10. Business Type
11. Latest financial statement or audited details of the business
12. Social Category of the Entrepreneur
13.  In case of partnership deed, a copy of that
14. AOA
15. MOA
16. Company Registered Documents