Udyam Registration

What is Udyam Registration?

The Ministry of MSMEs introduced the Udyam Registration Portal to digitize and streamline operations in India. It is a new, technologically advanced system that helps small and medium-sized enterprises flourish and provides all the support they need.

The government must approve Udyam Registration to receive an Udyam Recognition Certificate, MSME Registration, and a Unique Number. You must have this qualification to apply for legal and operational certification for small or medium firms. Udyam registration is handled by the MSME Ministry of the Indian government for micro and small businesses.

What is Udyam Registration Regulations?

The MSME Notification assented to on June 26, 2020, will go into effect on July 1st, 2020, and will be understood as “UDYAM REGISTRATION.” Since July 2020, the Udyog Aadhaar registration has been substituted with the Udyam registration. When Udyog Aadhaar registration began, the process was less available than now, thanks to Udyam registration. For the Credit Guarantee Scheme, the public procurement policy, an advantage in nation tenders, a safeguard against delayed payments, and other benefits offered by the Ministry of MSME, Udyam registration is vital.

Who are Eligible for Udyam Registration?

The updated MSME classification conditions are practical as of July 1, 2020, and were notified by the Ministry of Micro, Small, and Medium Enterprises on June 1st and 26th.

What is Udyam Registration Benefits?

The following are some advantages of the Udyam certificate:

• Banks deliver collateral-free loans to borrowers.
• Access to licensing, permissions, and registrations.
• International trade is given a distinct emphasis.
• The government supplies discounts on a range of expenses, including electricity costs.
• Companies reported with Udyam are qualified for the Credit Linked Capital Subsidy Scheme.
• The charge for ISO certification is refunded.
• Defense from late payments or rendered services.
• Subsidized and lower-interest bank loans.
• Manufacturing and exhibit sectors have unique reservation rules.
• Direct tax legislation immunity rules.
• NSIC performance fees and credit rating subsidies.
• Subsidy for barcode registration.
• Support for patent registration.

What are the Types of Udyam Registration?

• Provisional MSME Registration
• Permanent MSME Registration

Provisional MSME Registration

This is appropriate for recently formed entities. Provisional Registration enables the MSME to:

• Receive housing, land, etc., and amenities.
• Get necessary NOCs and clearances.
• Acquire regulatory approval, including the pollution control board and labor laws.
• Obtain operating capital and term loans from banks and financial institutions through priority sector lending.
• New businesses are given a PRC (provisional registration certificate), issued without conducting a field investigation and suitable for five years.

Permanent MSME Registration

It is circulated to operational industrial units. They are qualified for all the advantages offered to MSMEs. A permanent registration can only be obtained if the following requirements are satisfied:

• The department has obtained the necessary statutory and administrative clearances.
• The department breaks no laws or restrictions.
• The value of the department’s plant and machinery does not transcend the established limits.
• There should be evidence that the business is not owned, a subsidiary of, or under the control of another sector.

What is Requirement for Udyam Registration?

The following three areas of entities are eligible to apply for MSME registration.

• Micro Enterprises: If the annual turnover is at most five crores and the investment in equipment and machinery is no more significant than one crore.
• Small Enterprises: The annual sales are a little greater than 50 crores, and the investment in plant and machinery is at most ten crores.
• Medium Enterprises: If the annual sales are 250 crores and the investment in plant and machinery is at most 50 crores.

All manufacturing, service, wholesale, and retail companies that meet the new MSME classification criteria for yearly sales and investment are qualified to apply for MSME registration. Therefore, a company’s annual sales and investment define its MSME eligibility. The organizations listed below are eligible to register as MSMEs:

• Individuals, startups, and company owners.
• Public and private limited companies both.
• Individually held Limited Liability Partnerships (LLPs) Registration.
• Self-Help Groups (SHGs).
• Cooperative businesses.
• Trusts

What Documents are Required for Registration of Udyam?

• A picture-filled bank passbook.
• An election ID card.
• PAN card for a passport.
• A driving license.
• Aadhaar card.
• A government-issued identification card for workers, if any.
• Caste certification (for OBC, SC, and ST categories).
• Name and Aadhar number of the business’s owner.
• Name of the company.
• The documentation specifies the business information’s nature regarding the bank account details and mailing address.
• Information regarding the first registration process for the business.
• National Industrial Classification code.

What is the Process of Udyam Registration?

Step 1: Log in to The Authorized Webpage

Visit the government’s website at https://udyamregistration.gov.in.

Step 2: Proofs and Documents Must Be Uploaded

• A business registration certificate or certificate of incorporation.
• Verification of the business location’s address.
• Identity and residence verification for the promoter/director.
• It is necessary to have a bank account statement or a canceled cheque.
• Digital signature.
• Board decision.
• Authorization letter for approved signatory.
• A certificate stating the owner of the property has no objections.

Step 3: Submitting the GST Registration Form

Submit the GST registration form on the GST portal. For your records, you’ll get an ARN number. You must obtain the GSTIN within 3-5 working days, subject to permission from the government.

Step 4: Registering an MSME

Our experts will submit the MSME registration once we receive the GSTIN. You can get your company’s online MSME registration certificate in 2 to 5 working days.

How Can ApkaTax Assist You?

What is the Udyam Registration Fees?

Are you looking for Udyam Registration Fees then here the details for you. The Udyam Registration cost start from ₹500 to ₹3000 along with Government Fee ₹0 and Professional Fee ₹500.

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