Everything You Need to Know about Udyam Registration Online

What is Udyam Registration?

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.

What are the Benefits of Udyam Registration?

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:

• Access to formal credit: MSMEs with registration enjoy access to loans from formal lenders. Some lenders even provide loans without the burden of providing collateral, easing the financial constraints of expansion and development.
• Excise Exemption: MSMEs can benefit from an excise exemption scheme, leading to reduced direct tax liabilities, which can significantly impact your bottom line.
• Tailored Tax Breaks: Special tax breaks designed specifically for MSMEs, such as exemptions from the Minimum Alternate Tax (MAT), can substantially reduce your tax obligations.
• Trademark Subsidy: Registration also opens doors to subsidies for trademark filing, safeguarding your intellectual property rights while saving costs.
• ISO Certification Reimbursement: Reimbursement for ISO certification expenses helps in enhancing the credibility of your business, facilitating easier access to global markets.
• Rebates and Concessions: Special rebates and concessions on patents and industrial setups lower the cost of innovation and expansion.
• One-Time Settlement Fee: In cases of outstanding dues, MSMEs can benefit from a one-time settlement fee, providing a feasible solution for debt resolution.
• Access to government contracts: The government prioritizes MSMEs, which can lead to having a competitive edge in accessing various government contracts.
• Electricity Bill Concession: Registered MSMEs often qualify for electricity bill concessions, further reducing operational costs.
• Credit Guarantee Programs: Government-backed credit guarantee programs, which provide a safety net for businesses, are extended to registered MSMEs, making it easier to secure financing.
• International Trade Fairs: MSMEs are encouraged to participate in international trade fairs, fostering global exposure and potential partnerships.
• Subsidy for Barcode Registration: Barcode registration subsidies streamline inventory management and product distribution, contributing to efficiency and competitiveness.

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.

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Eligibility Criteria for Udyam Registration

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.

• MSMEs must be micro, small, or medium-sized businesses.
• The benefits change according to the annual turnover of the MSMEs. Micro businesses with an annual turnover of up to 5 crores, small businesses with sales between 5 and 75 crores, and medium businesses with sales up to 250 crores are all eligible for registration and benefits.
• To be eligible for the benefits of Udyam registration, micro-enterprises must not have investments totalling more than Rs. 1 crore. Investments in small and medium-sized businesses cannot exceed 10 crores and 50 crores, respectively.

Documents Required for Udyam Registration

Udyam registration is an online process and is completely paperless. It is based on self-declaration and requires the following documents:

• Aadhaar number of the owner or the authorised signatory of the business.
• Pan Card of the enterprise.
• GSTIN, if applicable.
• Address proof of the business.
• Bank Account details.

Udyam Registration Process for MSMEs

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:

• MSME entrepreneurs should visit the Udyam Registration website first
• Following that, select “For New Entrepreneurs Who Are Not Currently Registered As MSME.”
• Enter the OTP that was sent to your cell phone along with the Aadhaar number.
• Click the validate button to validate the Aadhaar number successfully.
• Enter the type of the firm and PAN number to verify your PAN Card with MSME.
• Fill out the MSME registration form carefully, including the organization’s founding date, contact information (phone, registered email, bank), the amount of investment, etc.
• After finishing the MSME registration form, click “Agree on terms and policies” to send it. You will then receive the OTP, so enter it before submitting the form.
• The e-registration certificate will now be received in your email.

How to Update or Edit Udyam Certificate Information Online?

• The first step is to visit the Udyam Registration website.
• Then, select the Update Udyam Certificate tab.
• Fill out the form with your information and your Udyam registration number.
• Type the mobile number or email address where you want to receive the OTP (which was previously listed on the Udyam Registration form). The OTP will be sent to the email or mobile number on file.
• Make the online application processing payment.
• You will be contacted by their executives, and you will need to provide them access to the OTP in order to continue processing your application.
• The Updated Udyam Certificate will be sent to the email address you provided.

Conclusion

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.

FAQs

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.

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