udyam Registration is a government-initiated scheme aimed at providing benefits to small and medium enterprises (SMEs) in India. The scheme, earlier known as Udyog Aadhaar Registration, is a hassle-free online registration process that allows MSMEs to register themselves and avail of benefits from various government schemes.
With the advent of the COVID-19 pandemic and its negative impact on small businesses, industry registration has become more important than ever. It is an essential tool for small business owners who want to take advantage of the benefits offered by the government and compete with larger businesses in the market.
In this comprehensive guide, we will give you complete details of Udyam Registration, from eligibility criteria to the registration process, benefits, and much more. By the end of this guide, you will have a clear understanding of Udyam Registration and how it can benefit your small business
Table of Contents
Eligibility Criteria for Udyam Registration:
To register under the Udyam Yojana, businesses need to fulfill certain eligibility criteria. These criteria are based on the investment made by the business in plant and machinery or equipment and its annual turnover. The following are the criteria for eligibility:
Micro Enterprise: A business with an investment of less than Rs. Annual turnover of less than Rs.1 crore in plant and machinery or equipment. 50 million.
Small Enterprises: A business with an investment of less than Rs. Annual turnover of less than Rs.10 crore in plant and machinery or equipment. 50 crores.
Medium Enterprises: A business with an investment of less than Rs. Annual turnover of less than Rs.50 crore in plant and machinery or equipment. 250 crores.
It is important to note that the above criteria apply to manufacturing and service-based businesses. In addition, businesses already registered under the Udyog Aadhaar Memorandum (UAM) need to re-register themselves under Udyam.
In July 2020, the government introduced new norms for enterprise registration, which is based on the Aadhaar number of the business owner. This criterion allows for more accurate identification of businesses and streamlines the registration process. Under the new norms, a business owner can use his/her Aadhaar number for registration of Udyam, which obviates the need for multiple registrations and simplifies the process.
Udyam Registration Process:
- Visit the Udyam Registration portal
- Fill the form properly with correct detail.
- Make the payment for udyam certificate
- Certificate will be sent to the email id.
The Udyam Registration process is a simple and user-friendly online process that can be completed in a few steps. Here is a step-by-step guide to the Udyam Registration process:
Common Issues and Mistakes to Avoid During the Registration Process:
The Udyam Registration process is designed to be simple and straightforward, but small business owners may encounter some common issues or make mistakes. Some of the most common mistakes include:
Entering incorrect details such as the wrong PAN card number or NIC code.
Failing to provide accurate information about the business’s investment in plant and machinery or equipment and annual turnover.
Uploading incomplete or incorrect documents, which can lead to delays in the registration process.
To avoid these issues and mistakes, it is important to double-check all the information entered during the registration process and ensure that all documents are complete and accurate. By doing so, small business owners can ensure that their registration process is smooth and hassle-free.
Benefits of Udyam Registration:
Udyam Registration is a crucial step for small businesses in India, as it offers a host of benefits and incentives. Here are some of the benefits that businesses can avail of after registering under Udyam:
- Access to credit: Udyam registration helps businesses to get access to credit at lower interest rates. Banks and financial institutions consider the Udyam Registration certificate as proof of the business’s existence and creditworthiness.
- Protection against delayed payments: If a business registered under Udyam does not receive payment for its services or products within the stipulated time, it can file a complaint under the Micro, Small, and Medium Enterprises Development Act, 2006.
- Government subsidies: Registered Udyam businesses can avail of various government subsidies and schemes, such as the Credit Linked Capital Subsidy Scheme, which provides a subsidy for the purchase of new plants and machinery.
- Easy access to government tenders: Businesses registered under Udyam can easily participate in government tenders as the registration certificate serves as proof of the business’s credibility and eligibility.
- Exemption from certain taxes: Udyam-registered businesses can avail of tax exemptions such as excise duty, direct tax laws, and more.
Also read – update udyam certificate
Benefits of having a Udyam Registration Certificate:
Apart from the incentives and benefits mentioned above, having a Udyam Registration Certificate provides many other benefits to small business owners. This includes:
Recognition as a legitimate business entity, which enhances the credibility and market value of the business.
Facility to open bank account and avail loan from banks and financial institutions.
Access to various government and private sector business development programs such as training and skill development programs.
Simplification of regulatory compliance, as businesses can easily file their MSME registration details with the government instead of going through multiple registration processes.
Lastly, Udyam registration is necessary for small businesses to avail various benefits and incentives provided by the government. It also provides legitimacy and credibility to businesses, which helps them grow and expand their operations.
FAQ
Q1. What is Udyam Registration?
A1. Udyam Registration is a new and simplified registration process introduced by the Ministry of Micro, Small and Medium Enterprises (MSME) for small and medium-sized businesses in India.
Q2. What are the eligibility criteria for Udyam Registration?
A2. The eligibility criteria for Udyam registration is based on the investment and turnover of the business. Micro enterprises with investment up to Rs. 1 crore and turnover up to Rs. Small enterprises with investment up to Rs.5 crore. 10 crores and turnover Rs. 50 crores, and medium enterprises with investment up to Rs. 50 crores and turnover Rs. 250 crore can apply for Udyam Registration.
Q3. How can I register for Udyam?
A3. To register for Udyam, visit the official Udyam Registration Portal, fill in the required details and upload the required documents. Once the application is submitted, the Registration Certificate is generated.
Q4. What are the benefits of Udyam Registration?
A4. Udyam registration offers many benefits and incentives to small businesses, such as access to credit, protection against payment delays, government subsidies and easy access to government tenders. Having a Udyam Registration Certificate also brings various benefits, such as validity, credibility and simplification of regulatory compliance.
Q5. Do I need to renew my Udyam Registration?
A5. Udyam registration is valid for a lifetime, and businesses are not required to renew their registration. However, they have to update their registration details annually or whenever there is any change in their business details.
Q6. Can I make changes to my existing Udyam Registration?
A6. Yes, businesses can update and change their existing Udyam Registration details as and when required.
