Step-by-step guide: How to register your MSME on Udyam portal

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MSMEs’ ease of doing business: The Ministry of MSME issues Udyam registration numbers and certificates, which allow companies with plant and machinery investments under Rs 50 crore and turnover under Rs 250 crore to apply for various government schemes pertaining to MSMEs. 

This is a paperless, online process that requires no fees. While registering on the Udyam portal is not required, MSMEs will require the Udyam certificate in order to receive cheaper interest loans, access to government tenders, tax breaks, incubation, mentorship, and other forms of support.

The Udyog Aadhaar Memorandum (UAM) and Entrepreneur Memorandum (EM)-II, the previous portals for MSME registration, have been superseded by the Udyam portal, which went into effect on July 1, 2020, according to the government. 

An organization can register on the Udyam portal in the following ways:

Click on “For new entrepreneurs who are not yet registered as MSME or those with EM-II” when you visit udyamregistration.gov.in. If you would like to switch from UAM, select “For those who have already registered as UAM.”

After entering your name and Aadhaar number, click “Validate and generate OTP.” This is for OTP-based Aadhaar verification.

The proprietor’s Aadhaar is needed in order to form a proprietorship firm. Aadhaar is essential for the managing partner in a partnership firm and for the karta in a Hindu Undivided Family (HUF).

If it’s a trust, a cooperative society, a limited liability partnership, or another type of organization, the authorized The signatory must present his Aadhaar, PAN, and GSTIN (Goods and Services Tax Identification Number).

After entering the OTP, select “Validate.” Following validation, choose your “type of organization” (proprietary, partnership, limited liability company, etc.) from the drop-down menu on the same page, and then input your PAN to confirm.

Enter the following information: business name, address, bank account information, location, NIC code that applies to your business, number of employees, and so forth.

Additionally, candidates have the option to automatically register on many portals at the same time, including the National Small Industries Corporation (NSIC) B2B portal, TReDS, National Career Service, and Government e-Marketplace (GeM).

A single Udyam registration can be expanded to include numerous manufacturing and service-related operations.

Therefore, it is not necessary to have numerous Udyam certifications. 

Qualifications to Register as an MSME

Businesses operating within certain threshold limits—including those in the commerce, manufacturing, and service sectors—are eligible to register on Udyam. The following requirements must be met in order to apply for Udyam registration:

Micro Enterprises: Micro enterprises are defined as those with an annual sales of less than Rs. 5 crore and an investment in machinery, plant, or equipment of no more than Rs. 1 crore.

Small Businesses: Small businesses have an annual revenue of less than Rs. 50 crore and an investment in machinery, plant, or equipment of less than Rs. 10 crore.

Medium Businesses: Medium-sized businesses are those with an annual revenue of no more than Rs. 250 crore and an investment in machinery, plant, or equipment of no more than Rs. 50 crore.

For enterprises to qualify for Udyam registration, they need to fit within their set investment and turnover limits for each group.

Who is eligible to register for Udyam?

Those who want to start a small, medium, or microbusiness in India can apply for Udyam Registration. It encompasses a range of entities, such as:

proprietorships

Hindu Partnership Firms for the Undivided Family (HUF)

Individual Businesses (IPCs)

Limited Liability Partnerships (LLPs), Producer Companies, Private Limited Companies, and Limited Companies

Any group of people

Collaborative communities

Anything else that you do

Any kind of entity may apply for Udyam registration portal as long as it satisfies the necessary requirements and is classified as an MSME under the applicable laws.

Udyam Registration Benefits

A number of attractive advantages are available to registered Micro, Small, and Medium-sized Enterprises (MSMEs) through Udyam Registration. These benefits play a crucial role in supporting their development and growth:

Getting into Government Programs: To participate in the many government plans and initiatives that the Ministry of MSME offers, MSMEs must first register as Udyams. These programs include the Public Procurement Policy, Credit Guarantee, and Credit Linked Capital Subsidy, among others. MSMEs can access these initiatives and obtain crucial financial support and incentives by registering under Udyam.

Seamless Integration: The government e-marketplace, GST identity systems, income tax site, and other vital systems are all smoothly integrated with the Udyam portal. Through the simplification of numerous administrative procedures, this integration facilitates MSMEs’ effective management of their tax and financial issues.

Priority Sector Lending: MSMEs can apply for priority sector loans from banks after registering with Udyam. They can more easily obtain credit facilities thanks to this specific lending factor. Advantageous terms, assisting their investment and commercial growth ambitions even more.

Extended MAT Credit: Rather than the prior 10 years, MSMEs registered with Udyam are eligible to carry forward the Minimum Alternate Tax (MAT) credit for a period of fifteen years. They will receive additional tax benefits from this extension, which will help them organize their finances more effectively and maintain stability as they expand over time.

Reduced Interest Rates: Obtaining bank loans at a reduced interest rate is one of the main benefits of Udyam registration. MSMEs that have registered with Udyam can typically obtain loans for as little as 1% to 1.5%, which lessens their financial burden and increases their ability to engage in innovation and business expansion.

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