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Udyam Registration

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  • Overview
  • Regulation
  • Eligibility
  • Benefits
  • Types
  • Requirement
  • Documents
  • Process
  • How Can ApkaTax Assist You
  • Fees
  • FAQs

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.

Investment in Plant & Machinery as Equipment & Turnover

Classification

Micro

Small

Medium

Manufacturing & Service

Investment<1 Crore &

Investment<10 Crores &

Investment<50 Crores &

Turnover<5 Crore

Turnover<50 Crore

Turnover<250 Crores

 

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:

 

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?

End-to-End Assistance

Expert Legal Guidance

Best in Class Client Support

We provide comprehensive assistance for getting your MSME/Udyam Registration.

ApkaTax offers comprehensive support for the MSME/Udyam Registration application process, including legal assistance based on the specific priorities of our clients.

Our dedicated support team ensures clients stay informed about the latest guidelines and updates regarding MSME/Udyam Registration requirements and periodic inspections.

 

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.

Steps Fees
Udyam Registration Fee ₹500 To ₹3000
Government Fee ₹0
Professional Fee ₹500

 

FAQs

All businesses registered with another government instrument under the Department of MSME must complete the Udyam registration process.

There is no further registration price, and Udyam registration is free.

An individual cannot apply for MSME registration. For MSME registration, a sole proprietorship, partnership firm, company, trust, or society must invest at least Rs: 50 crores and annual revenue of less than Rs. 250 crores.

The MSME certificates are still reasonable as long as the businesses remain running. However, a temporary certificate is only suitable for five years if you receive one.

Person Companies, Private Limited Companies, Limited Companies, Producer Companies, Limited Liability Partnerships, any association of persons, cooperative societies, or any other assignment may apply for MSME Udyam Registration in India.

A Micro, Small, or Medium-Sized Enterprise (MSME) Registration Certificate is a legal document that certifies the MSME's government registration. It offers these businesses several benefits and helps them.

The government offers many incentives to registered MSMEs, including simple admission to borrowing from banks and other financial institutions. Since registered MSMEs are more likely to collect prompt payback, banks prefer to lend to them. The government has also established several programs, such as the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS), which provides up to 75% of the loan amount as insurance in the event of borrower default. With the aid of this program, MSMEs can obtain loans with lower interest rates and no need for collateral.

Udyam Registration has taken the place of MSME Registration. The Ministry of Micro, Small, and Medium Enterprises (MSME) in India has introduced a brand-new online registration method called Udyam Registration.

The Ministry of Micro, Small, and Medium Enterprises (MSME), Government of India, is the principal agency in charge of granting certificates for MSME registration.

Until recently, MSME registration only applied to the manufacturing and service sectors. However, the nation announced in July 2021 that the MSME category would include wholesale and retail sectors.

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