MSME Registration

Composite Criteria: Investment in Plant / Machinery and Turnover
1	Micro enterprises	Less than Rs.1 Crore	Less than Rs.5 Crore
2	Small enterprises	Less than Rs.10 Crore	Less than Rs.50 Crore
3	Medium enterprises	Less than Rs.20 Crore	Less than Rs.100 Crore

Description

Udyam Registration, also known as MSME Registration, represents the revamped method for enrolling Micro, Small, and Medium Enterprises (MSMEs) introduced by the Ministry of Micro, Small & Medium Enterprises. Simultaneously, the Ministry revised the MSME classification criteria. Under this system, an enterprise is referred to as ‘Udyam,’ and the associated registration procedure is termed ‘Udyam Registration.’ Businesses are given a permanent registration number and a recognition certificate following successful MSME registration.

For better understanding, go through the table attached here:

Composite Criteria: Investment in Plant / Machinery and Turnover
S. No	Type of Enterprises	Investment	Turnover
1	Micro enterprises	Less than Rs.1 Crore	Less than Rs.5 Crore
2	Small enterprises	Less than Rs.10 Crore	Less than Rs.50 Crore
3	Medium enterprises	Less than Rs.20 Crore	Less than Rs.100 Crore

Udyam Registration Certificate

Upon completing the Udyam Registration process, an online certificate featuring a dynamic QR code will be issued. This QR code enables easy access to the enterprise’s details.

Renewal of Udyam Registration

The Udyam Registration Number is a permanent identification number, eliminating the need for periodic renewal.

OVERVIEW

The entities that fulfil the MSME classification can apply for MSME registration from the government portal, the Udyam portal. The MSME registration is entirely online and can be obtained from the Udyam registration portal. It is not mandatory for MSMEs to obtain this registration, but it is beneficial to get one’s business registered under this because it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc.

BENEFITS

Obtaining Udyam Registration is a straightforward process that eliminates the burden of paperwork. Benefits of having Udyam Registration for your business include:

Special Preference in Government Tender Procurement.
Access to Bank Loans without Collateral/Mortgage.
1% Interest Rate Exemption on Bank Overdraft (OD).
Eligibility for Various Tax Rebates.
Priority Consideration for Government Licensing and Certification.
Tariff Subsidies and Tax and Capital Subsidies for Registered Udyam Enterprises.
Discounts on Electricity Bills.
Protection Against Delayed Payments from Buyers.
Tax Rebates.
A 50% Discount on Government Fees for Trademark and Patent Filing.
Expedited Dispute Resolution.”

ELIGIBILITY

Udyam Registration is open to a wide range of entities and individuals looking to establish micro, small, or medium-sized enterprises (MSMEs) in India. Eligible applicants include:

Proprietorships: Individuals running a business on their own.
Hindu Undivided Family (HUF): A business entity formed by members of a Hindu Undivided Family.
Partnership Firm: Businesses owned and operated by multiple partners.
One Person Company (OPC): A single-member company.
Private Limited Company: A company with limited liability, typically with multiple shareholders.
Public Limited Company: A public limited company or any other limited liability company.
Producer Company: A company primarily engaged in producing, procuring, and marketing agricultural produce.
Limited Liability Partnership (LLP): A partnership with limited liability for its partners.
Any Association of Persons: Groups of individuals or entities coming together for a common purpose.
Co-operative Societies: Societies formed by individuals with common economic and social objectives.

DOCUMENTS REQUIRED

When it comes to the documents required for the Online Udyam Registration process, it is worth noting that the application is primarily based on self-declaration. As such, uploading any additional documents during the registration procedure is unnecessary. Applicants must only provide their 12-digit Aadhaar Number, PAN (Permanent Account Number), and Bank Account details of the business to complete the registration process efficiently.

FAQs

Q1. What are Udyog Aadhar Fees?

The Registration for MSMEs under Udyam Registration Portal is entirely online, and there is no fee for MSME registrations. It is free of cost.

Q2. What is NIC code for Udyam Registration?

The NIC code is a business code that is provided by the government to track the business proceedings for the organization under the micro, small and medium enterprises.

Q3. How many NIC codes can one add to NIC registration?

One can add a maximum of 10 NIC codes for Udyam registration.

Q4. What is the Udyam Registration?

Udyam registration is the latest Registration procedure for the Micro, Small, and Medium Enterprises (MSME), launched on July 1, 2020, by the government to ease the registration process.

Q5. Who is eligible for Udyam registration?

Anyone intending to establish micro, small, or medium enterprise may apply online. for Udyam registration.

Q6. Who is eligible to apply for MSME registration?

MSME registration can be obtained by the following entities that fulfil the revised MSME classification criteria of annual turnover and investment:

Individuals, startups, business owners, and entrepreneurs
Private and public limited companies
Sole proprietorship
Partnership firm
Limited Liability Partnerships (LLPs)
Self-Help Groups (SHGs)
Co-operative societies
Trusts

These entities involved in the following activities are eligible for Udyam registration:

Manufacturing Enterprises
Service Enterprises
Small retailers or wholesalers

Q7. Are traders eligible for Udyam registration?

Earlier, the MSME registration covered only manufacturing and service industries. The scheme does not cover trading companies. However, in July 2021, the government announced that the wholesale and retail trade would come under the MSME classification and thus can apply for their wholesale/retail business registration.

Q8. Can we have two Udyam registrations?

When the enterprises are different, i.e., established under other names and registered or incorporated separately, the enterprise proprietor can apply for MSME registration. However, an enterprise cannot file for more than one Udyam Registration. All the activities, including manufacturing or service, should be specified or added to one Udyam Registration. An entrepreneur can add additional actions to the Udyam Registration by clicking on the ‘Update Details’ option on the homepage.

Q9. Is the Aadhar card compulsory for Udyam Registration?

Yes. For obtaining Udyam registration, an Aadhaar card is compulsory. In case an applicant is other than the proprietor, the Aadhaar card of the partner and the director will be required.

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