Udyam Registration/MSME Registration?
What is Udyam Registration/MSME Registration?
Udyam Registration/MSME Registration has already come to be recognized by almost anyone, even among the people, as an initiative on the part of the Government of India towards promoting SMEs. The enterprises get registered through a unique identification number, which helps them avail themselves of various advantages and schemes. The registration is done online, and the procedure is fairly simple; yet, those enterprises that meet conditions will be considered for MSME recognition.
With this registration comes government assistance in matters of finance, subsidies, and incentives for the business. It further cultivates and builds credibility among customers and suppliers; Udyam Registration comes under the realm of the Micro, Small and Medium Enterprises Development Act of 2006.
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Eligibility for MSME Registration Process
The businessman must qualify for Udyam Registration according to certain criteria, depending on the investment in plant and machinery or equipment.
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For micro enterprises invest not more than โน1 crore, wherein their turnover must also not exceed the limits of โน5 crore.
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Small enterprises could have investments of up to โน10 crore, with turnovers of not more than โน50 crore.
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Medium enterprises should have an investment of up to โน50 crore, with turnovers that do not exceed the โน250-crore limit.
These limits help classify any enterprise as Micro, Small, or Medium.
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Who is entitled for application for Udyam registration?
Any business entity engaged in any kind of manufacturing or service activities is qualified to apply for this particular registration. This includes
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Sole proprietorships,
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Partnerships,
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Limited liability partnerships,
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Private limited companies,
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Public limited companies,
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Co-operatives,
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Other forms of organizations.
Even if the particular activity intends to operate in a different sector, eligible applicants would have to follow some other eligibility conditions, such as permanent registered license with valid documents issued from government authorities. They include documents like Aadhaar number in case of individuals, PAN for entities, etc.
Benefits of Udyam Registration
Udyam Registration offers a number of benefits:
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Streamlined access to credit: Registered MSMEs can gain easier access to loans from banks and financial institutions because of the enhanced credibility.
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Government schemes: Registered entities are eligible for different government schemes that would get subsidized loans, grants for upgrading technology, and participation in trade fairs at reduced costs.
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Priority sector lending status: Registered MSMEs are placed under the Priority sector list, hence promoting quicker loan approvals.
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Tax exemptions: Registered businesses qualify for tax exemptions under various government policies that are initiated to promote entrepreneurship.
These benefits make Udyam Registration a mandate for any MSME looking to raise its head and survive in India.
When should you apply for MSME/Udyam registration?
You should apply for MSME/Udyam registration from the time of starting the business or when stepping into expansion. This makes registration useful for every small to medium enterprise by providing a range of government schemes, subsidies, and importantly leading financial assistance.
It is always better advised to register before applying for loans or going for government contracts, as its availability could boost your credibility and eligibility for financial given help. If your business is already operating without any registration, it becomes a necessity to apply quickly in line with the advantages provided by the MSME Act.
Documents Required for Udyam Registration:
Documents required to complete Udyam registration include:
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Your Aadhar Number (for individuals).
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PAN Card (for companies).
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Business address proof.
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Bank account details.
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Business activity details.
GST registration details, if applicable. While applying, basic information is required this would include your investment in plant and machinery or equipment and turnover details. Having these documents will make things easier to follow up.
How to Get Udyam Registration Online?
In order to get Udyam registration online, follow these steps:
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Visit the official Udyam Registration portal at udyamregistration.gov.in.
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Fill out the online form with proper details like Aadhar Number, PAN Number, name of the business, type of organization, and investment details.
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Submit the form along with documents online.
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You'll receive a confirmation message.
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Upon successful processing, a unique Udyam Registration Number (URN) will be provided that serves as your MSME certificate.
How many days does it take to obtain MSME certificate?
Roughly speaking, MSME-Udyam certificate shall be issued in approximately 1 to 3 working days following the successful completion of the online application process for MSME/Udyam registration, contingent on the accurate enclosing of all necessary documents and verifiable lack of any discrepancies in the application. In some cases however, the processing time may impose despite workload at the registering authority or if there is a need for further verification. If wait-time exceeds beyond the allotted timeframe, it's prudent to check that space or connect any customer care support.
Is MSME registration cancelable?
Yes, there could be reasons for cancellation of MSME registration due to noncompliance for any particular reason or on termination of business activities. A cancellation application form should be submitted online through the same Udyam portal through which registration was done. Based on compliance issues or operational status of the applicant enterprise, the application will be approved by authorities thereby resulting in cancellation from their end.
