MSME Udyam registration can help you realize your company’s full potential. Our detailed manual will walk you through the entire process.
Small and medium-sized enterprises (SMEs) play an important part in any country’s economic progress. SMEs are known as Micro, Small, and Medium Enterprises (MSMEs) in India. According to the Ministry of Micro, Small, and Medium Enterprises, MSMEs account for around 30% of India’s GDP and employ over 110 million people. The government of India has developed numerous plans and regulations to assist small firms in growing, one of which is MSME Udyam Registration.
MSME Udyam Registration is a new registration process that the Government of India will start on July 1, 2020.
It supersedes the previous registration procedure known as the Udyog Aadhaar Memorandum (UAM). The Udyam Registration process is a completely online and minimum charge. It offers MSMEs a variety of benefits and initiatives, including financing, subsidies, and other perks.
In this blog post, we will go through the many components of MSME Udyam Registration and how it can help you unlock the power of your MSME.
Also Read: Udyam Registration For Partnership Firm
What exactly is the MSME Udyam Registration?
The government of India has introduced a new registration method for MSMEs called MSME Udyam Registration. The registration process is totally online, and there is no registration fee. The registration’s goal is to provide a variety of services.
The government of India has introduced a new registration method for MSMEs called MSME Udyam Registration. The registration process is totally online, and there is no registration fee. The registration’s goal is to provide numerous benefits and programs to MSMEs, such as access to finance, subsidies, and other perks.
MSME Udyam Registration Eligibility Criteria
A business must meet the following qualifying criteria to register as an MSME through the Udyam Registration process:
- The company must be registered as a sole proprietorship, partnership, limited liability partnership, or private limited company.
- The company must have a valid PAN card and be registered for GST.
- Investment in plant and machinery or equipment must not exceed Rs. 1 crore for micro-firms and Rs. 10 crore for large enterprises. Rs. 50 crores for medium-sized enterprises.
- The company’s turnover cannot exceed Rs. 5 crores for micro-enterprises, Rs. 50 crores for small businesses, and Rs. 250 crores for medium-sized businesses.
The Advantages of MSME Udyam Registration
MSME Udyam Registration offers MSMEs a variety of perks and programs. Some of the advantages are as follows:
- Easy Access to Credit: MSMEs registered through the Udyam Registration process can take use of several credit-related schemes and perks. Banks and other financial institutions can provide them with collateral-free loans of up to Rs. 2 crores.
- Subsidies: MSMEs registered through the Udyam Registration process are eligible for several government subsidies. These incentives can assist MSMEs in lowering expenses and increasing profitability.
- Priority in Government bids: MSMEs registered under the Udyam Registration process are given preference in government bids. The government has mandated that MSMEs account for 25% of its purchases, with women-led MSMEs accounting for 3%.
- Payment Protection: MSMEs registered through the Udyam Registration process are shielded against late payments. All payments to MSMEs must be made within 45 days, according to the government.
How Do I Register for MSME Udyam?
The application for MSME Udyam Registration is completed totally online. To apply for MSME Udyam Registration, follow the steps below:
- Go to the MSME Udyam Registration website at udyamregisteration.org.
- Complete the registration form with all the required information.
- Upload the required documents, such as your PAN card, GST registration certificate, and bank account information.
- When you submit the form, you will be given an acknowledgment number.
- The Udyam Registration certificate will be issued once the registration is complete.
Required Documents for MSME Udyam Registration
To apply for MSME Udyam Registration, the following documents are required:
- PAN card
- GST registration certificate
- Aadhaar card of the proprietor/partners/directors
- Bank account details
- Business address proof
- Business activity details
MSME Udyam Registration Renewal
The registration certificate obtained through MSME Udyam Registration is valid for life. However, the company’s information must be updated on a regular basis.If any of the information submitted during registration changes, the company must update it on the Udyam Registration portal.
MSME Udyam Registration is a critical step for MSMEs to unlock different government advantages and initiatives. It not only allows for easy finance, but it also provides subsidies, preference in government procurement, and protection against late payments. The registration process is completely online and minimum charge, making it simple for firms to apply. If you are an MSME, it is recommended that you register with Udyam to unlock the power of your MSME and expand your firm.