Many new entrepreneurs may wonder, “What is Udyam Registration?” when they establish their businesses. As it is a new initiative from the Ministry of MSME, most entrepreneurs aren’t aware of the Udyam registration and the documents they need to submit while registering on the portal. If you are one among them, you have arrived at the right place. We are here to walk you through everything you need to know about Udyam registration.
Udyam registration is also known as MSME registration and it was introduced to maximise benefits for micro, small and medium enterprises (MSMEs) in India. Udyam registration is a recognition certificate with a unique identification number which is provided to small, and medium enterprises.
Udyam portal has seen over 90 lakh registrations in just two years. According to a recent report from the Ministry of MSME, there are around 1 crore micro, small, and medium-sized businesses registered on the Udyam platform, employing 7.6 crore people, of which 1.7 crore are women. This is a clear pointer to how quickly the right people receive assistance from the Government at the right time.
Udyam or MSME registration doubles up as a business licence and carries a lot of other benefits than just being a mandatory requirement for MSMEs to avail of business loans. The Udyam registration process is completely digital, paperless and based completely on self-declaration. The Aadhaar number was usually enough for registration, however, from 01-04-21 PAN and GST numbers have also become mandatory.
Registering your business as an MSME (Micro, Small, and Medium Enterprise) can unlock a multitude of advantages that not only promote growth but also enhance your financial stability. Some compelling benefits of MSME registration include:
In essence, MSME registration is a strategic move that not only supports your business’s financial health but also positions it favourably for growth, recognition, and opportunities within India’s thriving economic landscape.
Let’s get things sorted out! As per the latest guideline from the Ministry of MSME, the benefits of registering with the Government are restricted to organisations that meet certain criteria. There are three basic factors that make up the primary requirements for Udyam registration. Whether an MSME qualifies for the benefits of Udyam registration depends on the type of business, annual turnover, and investment.
Udyam registration is an online process and is completely paperless. It is based on self-declaration and requires the following documents:
The Udyam registration process is easy. Compared to the previous method, the present system has been slightly improved and requires fewer specifics. There is no cost associated with MSME Registration, and the website does not impose any official fees for issuing registration certificates. Following the steps below will help you register your business as an MSME if you haven’t already:
Many small business entrepreneurs are setting up various MSMEs in India. Therefore, Udyam registration can be beneficial for these newly expanding businesses. Udyam Registration is a government registration that comes with a certificate of recognition and a unique identifying number called the Udyam registration number.
The main goal of establishing this facility was to give the Government a means of helping MSMEs in India registered with MSMEs. An e-certificate is given upon completion of the registration process. So, if your business hasn’t already registered with Udyam registration, do it right now to start enjoying its benefits.
As previously mentioned, MSMEs who register with Udyam are eligible for various perks. Availing of credit facilities or business loans has become a much-simplified process via the Udyam Registration number. If you are a Udyam registered business owner, you can apply for unsecured loans from Kinara Capital within a short time period. NBFCs like Kinara Capital are trying to bridge the gap for MSMEs in India to access formal credit and avail of fast business loans without any property collateral.
Kinara Capital’s digital process enables small business owners to check their eligibility in just 1 minute through the myKinara app. MSME entrepreneurs can avail of a collateral-free business loan from ₹1 lakh – ₹30 lakhs with doorstep services in their preferred vernacular language. With Udyam registration and minimum documentation, an MSME business owner can go from decision to disbursement within 24 hours. Also, we have a dedicated customer support team available between Monday – Friday (9.30 AM – 6.00 PM) at our toll free number 1800-103-2683 for any questions or assistance. This ensures that entrepreneurs can get the help they need throughout the loan process.
1. Can I register MSME online?
Yes, MSME registration is an online paperless process.
2. Is MSME registration free?
Yes, MSME registration does not require any fee.
3. Is GST compulsory for MSME registration?
GST is not compulsory for the MSME registration process for those enterprises whose annual turnover is below 40 lakhs for goods and 10 to 20 lakhs for services depending upon the specific categories. However, enterprises that have an annual turnover of above 40 lakhs are taxable entities and hence GST is compulsory for those enterprises.
4. Who is not eligible for Udyam registration?
Enterprises with an annual turnover of more than Rs. 250 Crores are considered large enterprises and hence they are not eligible for Udyam registration.