Udyam Registration - Process, Documents Required & Benefits

Udyam Registration is an online process introduced by the Ministry of Micro, Small, and Medium Enterprises (MSME) for businesses, companies, and enterprises that wish to register as MSMEs in India. This new system, launched by the Government of India, aims to support and promote small-scale businesses across the country. Below, we have provided complete information related to Udyam Registration.

What is Udyam?

“Udyam" is the term used for an enterprise that is officially registered under the Ministry of Micro, Small, and Medium Enterprises (MSME) through the Udyam Registration portal. It refers to any business entity, such as a proprietorship, partnership firm, company, or any other form of organization, that meets the criteria set by the government for classification as a Micro, Small, or Medium Enterprise.

What is Udyam Registration?

Udyam Registration is the new online registration system launched by the Government of India for Micro, Small, and Medium Enterprises (MSMEs). It has replaced the earlier system known as Udyog Aadhar Registration. This simplified process helps businesses get official recognition as an MSME and avail various government benefits and schemes.

What is Udyam Registration Certificate?

The Udyam Registration Certificate is an official e-certificate issued by the Udyam Registration Portal after completing the MSME registration process. It serves as proof that the business is recognized by the Government of India as a Micro, Small, or Medium Enterprise (MSME).

Why Udyam Registration? How to Apply for It?

Earlier, businesses had to go through multiple procedures like MSME registration, SSI registration, or Udyog Aadhar registration to be recognized as an MSME. The process was lengthy, required excessive documentation, and often involved dealing with various government departments.

To simplify this, the Ministry of Micro, Small, and Medium Enterprises introduced Udyam Registration, a fast, paperless, and hassle-free online registration process for MSMEs.

Now, entrepreneurs can easily register their business by filling out a simple online form on the Udyam portal. No complex paperwork, no long queue,s just a smooth process based on self-declaration.

URN (Udyam Registration Number)

After successful Udyam Registration, a business is officially recognized as a Udyam and is assigned a unique and permanent identification number known as the Udyam Registration Number (URN). This 16-digit number serves as proof of MSME registration and is used for availing various government benefits and schemes.

Meaning of Udyam

The Ministry of Micro, Small and Medium Enterprises (MSME) issued an official notification stating that from July 1, 2020, all MSMEs will be referred to as "Udyam". Accordingly, the registration process for these enterprises is now called Udyam Registration. This change was made to simplify the registration process and promote ease of doing business for small and medium enterprises in India.

Udyam Registration Process

The process for Udyam Registration is simple, quick, and user-friendly. Just follow the steps below:

Step 1: Visit the official Udyam Registration online website.

Step 2: Fill in all the required details in the Udyam Registration Form. Ensure that the information provided is accurate and complete.

Step 3: Make the online payment for your Udyam Registration application.

Step 4: A registration executive will verify and process your application.

Step 5: Within 1–2 hours, you will receive your Udyam Registration Certificate on your registered email ID.

Documents Required for Udyam Registration

The documents required for Udyam Registration vary based on the type of business entity:

• For a Proprietorship Firm:
  Only the Aadhar number of the business owner is required for registration.
• For Company or Limited Liability Partnership (LLP):
  PAN, GSTIN, and the Aadhar number of the authorized signatory are mandatory for Udyam Registration.

Benefits of Udyam Registration

Udyam Registration offers numerous advantages to Micro, Small, and Medium Enterprises (MSMEs) under the Indian Government’s new MSME scheme. Here are the key benefits:

• Exemptions under Direct Tax Laws
• Subsidy on Patent Registration
• Eligibility for Industrial Promotion Subsidy (IPS)
• Interest Subsidy on Bank Loans
• Collateral-Free Loans from Banks
• Protection Against Delayed Payments
  (For goods or services supplied to buyers)
• Special Reservation Benefits
  (Especially in the manufacturing and production sector)
• Simplified Process for Licenses and Registrations
• Eligibility for CLCSS
  (Credit Linked Capital Subsidy Scheme)
• Priority Consideration at International Trade Fairs
• Exemption from EMD (Earnest Money Deposit)
  (Useful while bidding for government tenders)
• Concession on Electricity Bills
• Waiver of Stamp Duty and Registration Fees
• Reimbursement of ISO Certification Fees
• Subsidy for NSIC Performance & Credit Rating
• Subsidy for Barcode Registration

Udyam Registration Due Date (Important Note)

As per the Ministry of MSME notification dated 26th June 2020, all existing MSMEs registered under Udyog Aadhar, SSI, or previous MSME formats were required to migrate to the new Udyam Registration system.

According to the notification, any enterprise registered under the old system would be considered a valid MSME only up to 31st March 2021.

Hence, all existing MSMEs must have converted to Udyam Registration on or before 31st March 2021 to continue enjoying government benefits such as subsidies, loan schemes, and other MSME-specific incentives.

The Government of India continues to introduce new schemes and support systems for startups and small businesses. If you're an entrepreneur or a business owner and haven't registered yet, it's the right time to apply for Udyam Registration through the official portal.

Feel free to fill out the Udyam Registration form and get your business officially registered under the Udyam scheme.

If you need any assistance, our Udyam Registration experts are here to help you. Simply fill out the form at udyamregistration.co and we’ll guide you through the entire process smoothly.

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