Udyam Registration is a government initiative in India that aims to promote and support micro, small, and medium enterprises (MSMEs). It was introduced by the Ministry of Micro, Small and Medium Enterprises (MSME) to replace the earlier system of registration known as the Udyog Aadhaar Memorandum (UAM).
Under the Udyam Registration process, MSMEs can obtain a unique identification number called the Udyam Registration Number (URN), which is recognized by various government agencies and departments. This registration is a simple and online process that provides several benefits and incentives to MSMEs, including access to credit, subsidies, and various government schemes.
Here are some key points about Udyam Registration
MSMEs involved in manufacturing or service-related activities can register under Udyam. The classification of MSMEs is based on investment in plant and machinery or equipment for manufacturing enterprises, and on turnover for service enterprises.
Registration Process
The registration process is done online through the official Udyam Registration portal.The applicant needs to provide basic information about the enterprise, such as Aadhaar number, PAN card details, business name, address, and other relevant information.
Documentation
The registration process requires some necessary documents, including Aadhaar card of the applicant, PAN card, bank account details, and other relevant information as per the enterprise type.
Udyam Registration Number (URN)
After successful registration, the applicant will receive a Udyam Registration Number (URN), which is a unique identifier for the MSME. The URN is valid for a lifetime and does not require renewal.
Benefits and Incentives
Udyam registered enterprises are eligible for various benefits and incentives offered by the government, such as collateral-free loans, interest rate subsidies, exemption from certain direct taxes, access to government schemes and programs, and more.
Updation of Information
In case of any changes or updates in the registered information, the MSME needs to update it on the Udyam Registration portal within a specified time period.
It’s important to note that the information provided here is based on the knowledge available up until September 2021, and there may have been updates or changes to the Udyam Registration process since then. It is recommended to visit the official Udyam Registration portal or consult with relevant authorities for the most up-to-date and accurate information.
Classification of Enterprises The classification of enterprises under Udyam Registration is based on the following criteria
- Micro Enterprises Enterprises with investment up to Rs. 1 crore in the case of manufacturing or Rs. 5 crore in the case of service sectors.
- Small Enterprises Enterprises with investment between Rs. 1 crore and Rs. 10 crore in the case of manufacturing or between Rs. 5 crore and Rs. 50 crore in the case of service sectors.
- Medium Enterprises Enterprises with investment between Rs. 10 crore and Rs. 50 crore in the case of manufacturing or between Rs. 50 crore and Rs. 250 crore in the case of service sectors.
Single-point Registration
Udyam Registration replaces the earlier requirement for multiple registrations like Provisional SSI Registration, Entrepreneur Memorandum (EM), and Udyog Aadhaar Memorandum (UAM). It provides a single-point registration system for MSMEs.
Self-Declaration
The registration process is based on self-declaration by the applicant. No documents or proof are required to be uploaded at the time of registration. However, the applicant must ensure the accuracy of the information provided.
Validity
The Udyam Registration Certificate is valid for the lifetime of the enterprise. There is no need for renewal or periodic updation.
Transition from UAM to Udyam
Existing enterprises registered under the Udyog Aadhaar Memorandum (UAM) need to re-register under Udyam. The government provided a transition period for UAM-registered enterprises to migrate to Udyam Registration. The UAM registration was considered valid until the migration process was completed.
Assistance and Support
The Udyam Registration portal provides assistance and support for the registration process. It offers guidelines, FAQs, and a helpdesk to address queries and resolve issues faced by applicants.
Linked Benefits
Udyam Registration is linked to various government schemes and programs aimed at supporting MSMEs. These include priority sector lending, access to credit guarantee schemes, technology upgradation programs, and more.
Multiple Registrations for Different Branches
If an enterprise has multiple branches, each branch is considered a separate entity. In such cases, each branch needs to be registered separately under Udyam Registration.
Aadhaar Number of Proprietor/Partners/Directors
The Udyam Registration process requires the Aadhaar number of the proprietor, partners, or directors as applicable. The Aadhaar number serves as a unique identifier for the individuals associated with the enterprise.
Benefits for Udyam Enterprises
Udyam registered enterprises can access various benefits and incentives provided by the government. These include priority sector lending, easier loan approvals, credit guarantee schemes, subsidies for technology upgradation, exemption from certain fees, and more. These benefits are aimed at promoting the growth and development of MSMEs in India.
Facilitation Council
The government has established Facilitation Councils at the district level to address the grievances and resolve disputes related to Udyam Registration. These councils provide a platform for MSMEs to seek assistance and resolve any issues they may face during the registration process or afterward.
Udyam Registration Certificate
Once the registration process is completed successfully, the enterprise receives the Udyam Registration Certificate. This certificate serves as proof of registration and can be used to avail the benefits and incentives provided under various government schemes.
Also read :udyam registration benefits
Conclusion
Udyam Registration is a simplified and online registration process introduced by the Ministry of Micro, Small and Medium Enterprises (MSME) in India. It aims to promote and support micro, small, and medium enterprises by providing them with a unique identification number called the Udyam Registration Number (URN). This URN is recognized by various government agencies and departments, and registered enterprises can avail themselves of several benefits and incentives.
