Hi guys, in this post we are going to discuss all about MSME Udyam Registration, its process, fees, documents, benefits of taking Udyam registration certificate, criteria for the classification of Micro, Small, and Medium enterprises.
Udyam Registration formally known as MSME Registration, Udyog Aadhaar registration.
What is Udyam Registration?
The Ministry of Micro, Small and Medium Enterprises by issuing a notification revised the definition of Micro, Small and Medium Enterprises (MSMEs) in India.
Therefore, w.e.f. 1st July 2020, all MSME shall be a Udyam and the registration process to get the status of Udyam will be known as Udyam Registration.
MSME Udyam Registration Portal
MSME (Udyam) Registration can be done on the Government portal only. URL or link to access this portal is – https://udyamregistration.gov.in/
This is the only portal notified by the government for Udyam registration. Beware of the fake site. You should register on this portal only. The entire process of registration is online, paperless. You just need to have a valid Aadhaar Number and PAN.
There is eight more government website for this purpose.
Now, all these domains have been directed to the above domain https://udyamregistration.gov.in/
Along with the Udyam Registration, one can register themselves on:
- GeM Portal (Government e-Market place, a portal for G to B)
- SAMADHAAN portal (a portal to address issues relating to delay in payments) and simultaneously
- MSMEs themselves can also onboard on TReDS Platform (the invoices of receivables are traded on this platform) through three available platforms:
Classification of Micro, Small and Medium Enterprises
The Ministry of Micro, Small and Medium Enterprises by issuing a notification dated 26th June 2020, revised the definition of Micro, Small and Medium Enterprises (MSMEs) and the process of registration.
As a result of this revision in classification criteria. W.e.f. 1st July 2020, an Enterprise will be classified as a Micro, Small or Medium Enterprises on the basis of the following criteria, namely:-
a) Micro Enterprises: where the investment in plant & machinery/ equipment is not more than Rs. 1 crore and turnover not more than Rs. 5 crore
b) Small Enterprises: where the investment in plant & machinery/ equipment is not more than Rs. 10 crores and turnover not more than Rs. 50 crore; and
c) Medium Enterprises: where the investment in plant & machinery/ equipment is not more than Rs. 50 crore and turnover not more than Rs. 250 crore.
|Enterprises||Investment in Plant & Machinery||Turnover|
|Micro||Not more than 1 Crore||Not more than 5 Crore|
|Small||Not more than 10 crore||not more than Rs. 50 crore;|
|Medium||Not more than 50 crore||not more than Rs. 250 crore.|
Salient features of Udyam Registration
1. Anyone interested may apply to obtain the Udyam Registration for his enterprise.
2. Registration can be done through the govt. UDYAM REGISTRATION PORTAL only.
3. link to access the portal is Udyam Registration portal
4. Udyam Registration process is completely online and Paperless. There is no need to upload any documents.
5. There is no any registration fee prescribed. Therefore, the Registration Process is totally free.
6. On successful completion of the registration process, an e-certificate, called, “Udyam Registration Certificate” shall be issued to the applicant.
7. Udyam registration is permanent in nature and there will be no need for renewal of it.
8. This certificate has a dynamic QR Code that can be used to access the details of the enterprise.
9. The online system is fully integrated with Income Tax and GSTIN. PAN & GST linked details on investment and turnover of Enterprises will be auto-populated from the respective Government databases;
10. Enterprises shall apply for only one Udyam Registration. However, any number of activities including manufacturing or services, or both, can be added to one Registration.
What are the documents required for Udyam Registration?
The registration process is fully online and paperless. We do not require to attach or upload any documents.
Only Aadhar Number and PAN is enough for registration.
Benefits of taking Udyam Registration
There is a number of benefits of taking a Udyam registration certificate. These benefits are listed out as per the schemes offered by the Ministry of MSME for the development of micro small and medium business enterprises in India.
The same benefits shall be applicable and availed by the Udyam registered enterprises.
The Udyam Registration will help MSMEs in availing the benefits of various Schemes of the Ministry of MSMEs such as
- Credit Guarantee Scheme,
- Public Procurement Policy,
- Additional edge in Government Tenders
- Protection against delayed payments
- eligible for priority sector lending from Banks
In addition of the above, following are the additional benefits of obtaining Udyam Registration:-
- Waiver in stamp duty and registration fees
- Exemption of 1% interest rate on Overdraft.
- Protection against delayed payments, against material/services supplied
- Eligible to avail subsidy from NSIC and credit ratings
- Eligible for Waiver in IPS (Intellectual property Services) fee.
- Reimbursement of the expenses made for obtaining the ISO certificate.
- Reservation of products for exclusive manufacturing by MSME and SSI.
- Avail Excise Exemption Scheme.
- Interest rate Subsidy on Bank loans
- Bank loans become cheaper because of lower interest rate
- Avail exemption while applying for government tenders.
- Exemption under Income tax laws.
- Easy bank mortgages and Bank Business Loans facility
- Ease in getting licenses, approvals, and registrations, etc. Businesses registered under Udyam are given preference over others for government license and certification.
- Registered Udyams gets tariff subsidies and tax and capital subsidies
- Eligible for credit linked capital subsidy scheme
- Waiver in fee (50%) for Trademark Registration
- Waiver in available for Patent registration
- Industrial Promotion Subsidy (IPS) Subsidy Eligibility
- One can avail 100% Collateral Free loans from all banks
- Special consideration on International Trade fairs
- Waiver in Security Deposit in Government Tenders and Departments
- Concession in electricity tariff or bills
- Waiver in Bar Code Registration fee