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 Adhaar number was usually enough for registration, however, from 01-04-21 PAN and GST numbers have also become mandatory.
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.
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:
There are several benefits of having a Udyam Registration. This has now become a mandatory document for MSMEs for acquiring a business loan, cost benefits for various government tenders and schemes, during licence application processes, tax rebates and more. Given below are some of the key benefits of Udyam registration.
Are you an MSME entrepreneur who is still using Udyog Aadhaar, a twelve-digit unique number used for identification purposes? Then, it is time to migrate to Udyam, a new and improved system. The Ministry of MSME notified that Udyog Aadhaar will no longer be valid after the 31st of March 2022. It means that the companies that are already registered for a Udyog Aadhaar can no longer avail of the benefits without registration for Udyam.
Udyog Aadhaar was a long process, and to make it easy and fast the Indian Government made some amendments by introducing Udyam. It created a major impact on MSME owners and a large number of businesses came up to get the registration as it was online and no paperwork was required. For registering your business visit :
https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
The new technology uses a QR Code-based method to implement even more sophisticated digital authentication and verification mechanisms. Every registration document includes a special QR Code that will be scanned and reported on by every Ministry of MSME channel partner to verify and update information about the MSME. This system will now classify MSMEs based on turnover as well as investment value. This is being done to support and encourage MSMEs to become industry leaders.
MSMEs that invest less money but generate more revenue over time are recognised as CHAMPIONS and receive additional benefits. For companies that already have a Udyog Aadhaar don’t need any documents for the process. They require only their Aadhaar number for verification. They just need to follow the guidelines given below.
The system will check all the data you provided after this process is finished. After a few days, if there are no issues and your Udyog Aadhaar is properly validated, you will receive a message asking you to return to the system and finish the process. You will then get your Udyam Certificate. When a business receives its Udyam Certificate, it becomes qualified to take advantage of its benefits.
But, the companies that do not possess Udyog Adhar and wish to register themselves need to fill up a form that asks for various information regarding the applicant, the company, and the company’s bank details. The following documents are required for new MSMEs to register:
The minimal required documents are uploaded and the registration certificate is sent to the owner’s email address.
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. Give a missed call to 080-68264454 to reach our in-house customer care team for more questions.
