Udyam Registration

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Udyam Registration in India: Process, Fees, Time taken, Documents, Benefits

Udyam Registration is a streamlined online registration process introduced by the Government of India for Micro, Small, and Medium Enterprises (MSMEs) to obtain official recognition and access various government benefits. It has replaced the earlier Udyog Aadhaar Registration system, making MSME registration simpler and more transparent. Businesses can complete Udyam Registration by submitting basic details such as Aadhaar number, PAN, business information, and bank account details.

Once registered, MSMEs can enjoy multiple benefits, including easier access to bank loans and credit facilities, government subsidies, tax exemptions under direct tax laws, and preference in government tenders and procurement. BizCatalyst assists businesses throughout the Udyam Registration process, promoting ease of doing business and helping MSMEs leverage government schemes, incentives, and support programs.

As per recent updates released in March 2024, registrations under Udyam and Udyog Aadhaar Portal (UAP) have crossed the 4 crore mark, highlighting a significant milestone in the formalization of MSMEs in India. The Ministry of Micro, Small and Medium Enterprises (MSME) continues to focus on strengthening and developing the MSME sector by encouraging widespread registration and growth.

What is Udyam Registration?

Udyam Registration is an official government registration system in India introduced exclusively for Micro, Small, and Medium Enterprises (MSMEs). It has replaced the earlier Udyog Aadhaar (UAM) Registration to streamline MSME recognition and classification. The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India, implemented Udyam Registration through notification S.O. 2119(E) dated 26 June 2020, effective from 1 July 2020.

Under the Udyam Registration framework, MSMEs are classified using a combined criterion of investment and annual turnover, applicable to both newly established and existing enterprises. This standardized classification system ensures transparency, ease of compliance, and uniform benefits across the MSME sector.

Any individual or entity planning to start a micro, small, or medium enterprise can apply for Udyam Registration online via the official Udyam Registration Portal. The registration process is completely self-declaration based and does not require uploading any documents, certificates, or proofs, making it quick and hassle-free.

Once registered, the enterprise—referred to as an “Udyam” on the portal—is allotted a permanent and unique identification number known as the Udyam Registration Number (URN). Upon successful completion of the registration process, an official Udyam Registration Certificate is issued electronically, which can be downloaded and used for various business and compliance purposes.

Udyam Registration Number (URN)

The Udyam Registration Number (URN) is a unique identification number provided to MSMEs after successful registration on the Udyam Registration Portal. Issued by the Ministry of MSME, this number serves as official recognition of the enterprise and enables businesses to access government schemes, subsidies, incentives, credit facilities, and compliance benefits. The URN plays a vital role in simplifying MSME registration and promoting business growth in India.

How to Obtain Udyam Registration Certificate?

The government in January this year had launched the Udyam Assist Platform (UAP) – a formalisation project by the MSME ministry. The primary objective of UAP is to bring a large number of such informal micro enterprises (IMEs) into the formal economic fold with the help of designated agencies (DAs).

To obtain an Udyam Registration Certificate in India, which is necessary for micro, small, and medium enterprises (MSMEs) to avail of various benefits and schemes provided by the government, you can follow these steps:

Visit the Udyam Registration Portal: Go to the official website dedicated to Udyam Registration. The website was managed by the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India.
Create an Account: If you are a new user, you need to create an account on the Udyam Registration portal. This typically requires providing basic details such as your Aadhaar number (for Indian citizens), PAN card details, and other business-related information.
Fill in the Registration Form: After creating an account, you need to fill out the registration form with accurate details about your business. This includes information such as the name of the enterprise, type of organization, location, bank account details, etc.
Upload Required Documents: You will need to upload certain documents including Aadhaar card of the proprietor/partners/directors, PAN card, business address proof, and other relevant certificates as per the requirements of the Udyam registration process.
Submit the Form: Once satisfied, submit the Udyam registration form.
Pay the Registration Fee: Make sure to pay this fee through the online payment options available on the portal.
Receive Registration Certificate: After successful submission and verification of your application, you will receive the Udyam Registration Certificate.
Renewal and Updates: Udyam Registration needs to be renewed periodically. Ensure you comply with any updates or changes in regulations regarding MSMEs.

Udyam Registration Benefits for MSME

Udyam Registration offers several benefits to micro, small, and medium enterprises (MSMEs) in India. Here are some benefits:

Ease of Access to Credit: Registered MSMEs can avail of collateral-free loans and credit facilities with lower interest rates under various government schemes such as Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
Priority Sector Lending: Banks are required to lend a certain percentage of their total lending to priority sectors, including MSMEs. Udyam Registration helps MSMEs qualify for this priority sector lending.
Subsidies on Patents and Trademarks: The government provides subsidies for MSMEs that have acquired patents or trademarks. Udyam Registration allows MSMEs to avail of these subsidies, which can significantly reduce the cost of intellectual property rights protection.
Preference in Government Tenders: MSMEs registered under Udyam are eligible for various government schemes and tenders specifically reserved for them. This preference gives them an advantage in competing for government contracts and procurement orders.
ISO Certification Reimbursement: MSMEs registered under Udyam can claim reimbursement of expenses incurred for obtaining ISO certification. This encourages MSMEs to adopt quality standards and enhance their competitiveness.
Exemption Under Direct Tax Laws: MSMEs registered under Udyam may be eligible for exemptions under various direct tax laws and regulations, promoting savings and investment in business growth.
Financial Assistance for Participation in Foreign Expos: MSMEs can receive financial support for participating in international trade fairs and exhibitions, facilitating business expansion into global markets.

Difference between MSME Registration and MSME Udyam Registration

MSME Udyam Registration is an updated and more structured version of the earlier MSME Registration also known as Udyog Aadhaar Registration, emphasizing transparency, accuracy, and compliance with specific documentation requirements. It ensures that MSMEs receive the benefits and support they are entitled to under various government schemes while maintaining data integrity and reliability. The MSME Udyam registration is facilitated through the government portal known as the Udyam portal. The entire process of MSME registration is conducted online and eligible entities can conveniently apply for it on the Udyam registration portal.

How to Download Udyam Registration Certificate?

To download the Udyam Registration Certificate in India, follow these steps:

Visit the Udyam Registration Portal: Go to the official Udyam Registration portal managed by the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. The URL for the portal is https://udyamregistration.gov.in.
Login into your account: Log in to your account on the Udyam Registration portal.
Check Registration: Find Udyam Registration details within your account. The information such as your Udyam Registration Number (URN), date of registration, and other relevant details.
Download the Certificate: Download or view/print your Udyam Registration Certificate. Click on this option to generate the certificate.

Documents required for Udyam Registration

For Udyam Registration process for micro, small, and medium enterprises (MSMEs) in India, the required documents are:

Aadhaar Card of the Proprietor/Partners/Directors
PAN Card of the Proprietor/Partners/Directors
Business Address Proof
Name and Type of Enterprise
Date of Commencement of Business
Bank Account Details
Classifications of Enterprise
Investment in Plant and Machinery or Equipment
Annual Turnover
GSTIN (Goods and Services Tax Identification Number)
NOC from the Pollution Control Board (if applicable)

Online Udyam Registration Process

The online Udyam Registration process for micro, small, and medium enterprises (MSMEs) in India is designed to be user-friendly. Here’s a step-by-step guide to Online Udyam Registration:

Visit Website: Go to the official Udyam Registration portal managed by the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. The URL for the portal is https://udyamregistration.gov.in.
New User Registration: If you are a new user, you will need to create an account on the portal. Click on the “New Registration” or “Register” option to begin the process.
Enter Aadhaar Number (or Passport for NRIs): Enter your Aadhaar number (for Indian citizens) or Passport number (for non-resident Indians) to proceed with registration. In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organization or its authorized signatory shall provide its GSTIN and PAN along with its Aadhaar number.
Verify OTP (One-Time Password): You will receive an OTP on your registered mobile number linked with Aadhaar. Enter this OTP to verify your identity and continue the registration process.
Fill in the Registration Form: After OTP verification, you will need to fill out the online registration form. Provide details such as:
- Personal information (name, Aadhaar number, PAN card details, etc.).
- Business details (name and type of enterprise, business address, date of commencement, etc.).
- Bank account details (account number and IFSC code).
- Classification details (industry type, activities undertaken, investment in plant & machinery, annual turnover, etc.).
Upload Required Documents: Upload scanned copies of documents such as Aadhaar card, PAN card, business address proof, and any other relevant certificates or documents as specified.
Submit the Application: Double-check all the information provided in the registration form and ensure all required documents are uploaded correctly. Once satisfied, submit the application.
Payment of Registration Fee: Pay the registration fee online, if applicable. The fee structure varies based on the category of enterprise (micro, small, medium).
Issuance of Udyam Registration Certificate: Upon verification of the details provided, your Udyam Registration Certificate will be issued. You can download the certificate from the portal once it is available.

Who can apply in Udyam Registration Portal?

The Udyam Registration portal is specifically designed for micro, small, and medium enterprises (MSMEs) in India. MSMEs are classified based on their investment in plant and machinery or equipment (for manufacturing enterprises) and annual turnover (for both manufacturing and service enterprises). Individuals and entities involved in manufacturing or providing services, as defined under the MSME Development Act, 2006, can apply for Udyam Registration. The classification criteria are as follows:

Micro Enterprises: Investment up to Rs. 1 crore and turnover up to Rs. 5 crore.
Small Enterprises: Investment up to Rs. 10 crore and turnover up to Rs. 50 crore.
Medium Enterprises: Investment up to Rs. 50 crore and turnover up to Rs. 250 crore.

Who Cannot Apply?

Entities that do not meet the definition of MSMEs as per the criteria specified by the MSME Development Act, 2006.
Enterprises that do not have the required documents or information for registration.
Entities engaged in activities not covered under the MSME sector, such as large-scale manufacturing or services beyond the prescribed turnover limits.

Udyam Registration Fees in India

There is no fee charged by the government for Udyam Registration itself. The registration process is free of cost for MSMEs. While the government does not charge any fee for Udyam Registration, We at BizCatalyst Technologies charge a nominal fee of Rs 499 to assist with the Udyam Registration in India. This fee is for our service and is not mandated by the government.

How long it takes to get the Udyam Registration certificate in India ?

BizCatalyst Technologies applies for Udyam application within 4 hours of the engagement and Udyam resgistration certificate is issued on the same day.

Bizcatalysttechnologies Assistance for Udyam MSME Registration

BizCatalyst Technologies assists in Udyam Registration by guiding micro, small, and medium enterprises (MSMEs) through the registration process. We ensure all necessary documents are in order, help fill out the registration form accurately, and submit it online. Additionally, they may provide advisory services on classification, eligibility criteria, and benefits available under the Udyam scheme.