Udyam Registration - Process, Documents Required & Benefits

Udyam registration is an online method created by the Ministry of micro, small and Medium Enterprises (MSME) that allows businesses, companies or enterprises wishing to register as MSMEs to do so easily online from anywhere in India. This is a new initiative by the Government of India to uplift and promote small-scale industries in India. Below, we provide you with all the necessary information regarding Udyam registration.

What is Udyam?

The name 'Udyam,' refers to an entity which is recognized as a registered business through registering on the Udyam Registration portal, as laid out by the Ministry of Micro, Small and Medium Enterprises (MSMEs). Udyam can be classified as micro, small, or medium; these classifications apply to all forms of business, including sole traders (proprietorships), partnerships (two or more individuals running a business), and companies.

What is Udyam Registration?

Micro, Small and Medium Enterprises (MSMEs) can now register online with the Udyam Registration System that was launched by the Indian Government. It replaces the previous Udyog Aadhar System. This new and improved process allows you to receive an official MSME registration and to be eligible for various Government programs and benefits.

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?

Previously, businesses would have to complete numerous processes such as the MSME or SSI and Udyog Aadhar registrations in order to receive official recognition from the Government as an MSME. This was a cumbersome, lengthy and documentation-heavy process that typically involved interaction with multiple government entities.  

To assist in this regard, the MSME Ministry has created Udyam Registration, which allows for a fast and easy online registration process for MSMEs that is 100% paperless and hassle-free.  

As a result, entrepreneurs can complete their registration easily through the Udyam Portal by simply filling out a short online form, with negligible paperwork, without having to wait in long lines and using only a self-declaration as the basis for their application.

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

The Udyam Registration provides various benefits for the MSMEs through the newly launched MSME Scheme of the Indian Government. The significant benefits include:

• Exemption from Direct Tax Laws,

• Subsidy for Patent Registration, 

• Eligibility for IPS (Industrial Promotion Subsidy),

• Interest Subsidy on Bank Loans,

• Collateral-free loans from banks,

• Protection from delayed payment from buyers for supplied goods/services,

• Reservation Benefit (specifically for the production/ manufacturing industry),

• Simplified process to obtain licenses/ registrations,

• Eligibility for CLCSS (Credit Linked Capital Subsidy Scheme), 

• Priority Attention at International Trade Fairs,

• exemption from EMD (Earnest Money Deposit) for bid submissions on Government Tenders,

• Concessional rates on billings for electricity supply, 

• Waiver of any stamp duty and registration charges,

• Reimbursement of ISO Certification Charges,

• Subsidy for NSIC Performance & Credit Rating, and

• Subsidy for Barcode Registration.

Udyam Registration Due Date (Important Note)

According to the Ministry of Micro, Small Medium Enterprises (MSME) announcement dated June 26, 2020 all registered MSME's under the Udyog Aadhar; SSI; and other past formats must move over to the new Udyam Registration system to maintain their status as a legal MSME according to that same announcement, any MSME registered in the old format will be considered a legal MSME until March 31, 2021, therefore all current MSME's must switch over to Udyam Registration by March 31, 2021 to access government services like assistance, financial services etc.

Government of India and the Prime Minister have and continue to develop new MSME schemes for start-ups and small businesses, and have re-opened the Udyam Registration process, so now would be a good time for any owner of an entrepreneurial endeavor to register for their Udyam Registration through the official Udyam site by completing the Udyam Registration application form to officially register their MSME business according to Udyam guidelines and consistent with applicable laws.

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.

Follow Us On Facebook

Subscribe to our YouTube channel today – Click Here