written by | March 23, 2022

How to Complete Udyam Registration Online for MSME’s?

The only government portal to register MSME (Udyam) online is the official portal for MSME registration. Also, if you’ve already registered with UAM (Udyog Aadhaar Memorandum) or EM-II (Entrepreneurs Memorandum, Part-II), you can still re-register through this portal. 

The Micro, Small, Medium Enterprises Ministry maintains this portal, and you get all the steps and details necessary for registration. The registration process is very easy for all. This paperless Udyam registration is free of cost, and this user-friendly portal is highly appreciable. MSMEs stands for micro/small/medium enterprises.

Let’s define micro, small and medium enterprises here. 

  1. Microenterprise: Business equipment, machinery, and plant investment doesn’t surpass the ₹1 crore limit. The maximum turnover limit for a microenterprise is ₹5 crore.
  2. Small enterprise: Business equipment, machinery, and plant investment doesn’t surpass the ₹10 crore limit. ₹50 crore is the maximum turnover limit.
  3. Medium enterprise: Business investment in equipment, machinery, and plant doesn’t surpass the ₹50 crore limit, while it follows the maximum turnover limit of ₹250 crores.

Did you know?

According to an analysis of Udyam registration data, total 58,90,301 MSMEs registrations took place on the Udyam Registration portal upto 30th November 2021. 

Why Does One Need Udyam Registration?

You must complete your Udyam registration to enjoy the following advantages:

  1. Your venture will satisfy the eligibility criteria for electricity bill concessions.
  2. Requesting a lower interest rate is possible while obtaining loans from NBFC/banks.
  3. You can avail of collateral-free loans from banks.
  4. You won’t face difficulties in availing tax exemptions.
  5. The government will decrease your claim charges. 
  6. You’ll receive reimbursement of the expense in availing of ISO certification.
  7. The National Small Industries Corporation will readily give you subsidies.
  8. You’ll enjoy the excise exemption scheme by the Indian government. 

Also Read: Udyog Aadhaar Memorandum (UAM) validity extended till March 31, 2022

Does the Manufacturing Sector Receive Any Government Support?

The National Manufacturing Competitiveness Program is undertaken by the Indian government supports MSMEs in numerous ways. 

These are the schemes that will help your new business to expand your global presence: 

  1. National campaign for creating recognition on Intellectual Property Rights.
  2. Design clinics scheme for MSMEs.
  3. Promotion of communication & Information Tools. 
  4. Code under MDA (Market Development Assistance) scheme.
  5. Support for managerial and entrepreneurial development of SMEs via Incubators.
  6. Lean manufacturing competitiveness scheme.
  7. Support manufacturing sector in making them more competitive through quality technology tools and quality management standards.
  8. Quality and technology upgradation support.
  9. Technology upgradation and marketing assistance scheme. 
  10. Setting up of mini tool room.

Online Udyam Registration Process

New entrepreneurs get to Udyam registration online application to register by tapping on click the first button which says button “For New Entrepreneurs ---------------- with EM-II” option on the home page. If you plan to migrate to Udyam/Re-Register UAM, you can click on “For those already ------UAM” or “For those already ------------- Assisted filing.” 

When you click “For New Entrepreneurs ---------------- with EM-II,” you’ll reach a registration page. Just enter the entrepreneur’s name and enter the aadhaar number and tap the “Validate & Generate OTP” button. After OTP verification, you’ll have to fill in your PAN card details. Once that is verified, enter your MSME Udyam registration details and complete the registration process. If you haven’t got a PAN card, you can fill in Udyam registration details and complete the registration.

If you've clicked "For those already ------UAM" or "For those already ------------- Assisted filing." You'll see a registration page. After that, complete the OTP verification process after entering your Udyog aadhaar number. You'll find some options to receive OTP on your mobile/email when you fill in UAM. Now, tap "Validate & Generate OTP." Once you've entered it, you've completed Udyam registration free of cost. 

More Information on Registration Process

The Aadhaar number is of the owner when it is a proprietorship company or of a managing partner, in the instance of a partnership-based firm, and a Karta in case of a HUF (Hindu Undivided Family).

  1. There will be no charge to file Udyam registration.
  2. The form to register should be the same as that provided on the registration portal for Udyam.
  3. Aadhaar number is necessary to be used for Udyam registration.
  4. Anyone who intentionally falsifies or attempts to conceal the self-declared information and figures included in the online Udyam registration or updation process is liable for the punishment provided in Section 27 under the Act.
  5. If an entity is recognized as an Udyam with a PAN, any insufficient data for recent years where the company did not have PAN must be filled in a self-declaration form.
  6. A company or cooperative society, a trust, or a Limited Liability Partnership, the entity or its designated signatory must give its GSTIN and PAN in addition to the Aadhaar number.
  7. An enterprise cannot have multiple Udyam registrations. However, any one of the following activities, namely manufacturing or service, or both, could be included in only one Udyam registration.

Besides Udyam registration for MSME’s, you can also know how to get an MSME loan without collateral.

For Existing Enterprises (MSME Re-registration)

  1. All existing enterprises registered under UAM or EM–Part-II should re-register on the Udyam registration portal after 2020, 1st July. 
  2. The existing enterprises who've registered before 2020, 30th June, will be valid only till 2021, 31st December.
  3. Enterprises that have registered till 2020, 30th June, shall be reclassified.
  4. An enterprise registered under any organisation falling under the Ministry of MSME needs to be registered under Udyam registration.

Some Guidelines You Must Follow

  1. MSME registration is completely free, paperless, and built on self-declaration
  2. MSME registration is completely online, paperless, and is based on self-declaration.
  3. The documents and proofs are not needed to be uploaded to the registration of an MSME.
  4. Only the Aadhaar Number is enough to register.
  5. PAN & GST linked details regarding the turnover and investment of businesses will be retrieved immediately from the government's databases.
  6. This online platform will fully integrate with the Income Tax and GSTIN systems.
  7. Anyone who has already done MSME online registration part II or UAM registration online, or any other registration granted by an authority of the Ministry of MSME, will be required to renew their registration.
  8. An enterprise can file a maximum of one Udyam registration. However, any activities, such as service or manufacturing, or both, may be listed or added to one registration.

Compulsory Documents For MSME Registration

  1. The basic business activity
  2. Aadhar number 
  3. PAN number
  4. Address of the business
  5. Bank account number 
  6. Copies of bills and licences of purchased machinery 
  7. Investment details (Equipment/Plant details)
  8. NIC 2 digit code 
  9. Partnership deed (Sales/purchase bill copies) 
  10. Turnover details (as per new MSME definition) 

Also Read: MSME Registration In India: Procedure, Documents Required, Benefits

Important Option

By taping "Important," one page will open, which has the points in the headings "Must Follow," "Must Know," "Important to Know," "Important to Follow" 'and specifies the criteria used to classify an organisation as a medium, small and micro-sized enterprise. It also links a PDF containing an extensive legal framework that defines the MSMEs classification. Here, you also find the process for registering them and registration in Hindi and English.

Principal Benefits to MSME Free Registration for Companies in India

The below section illustrates the main benefits of MSME registration for Indian companies. 

  1. Special government contracts cater to MSMEs mostly.
  2. Contrary to the normal Minimally Alternate Tax (MAT) duration of 10 years for credit, MSMEs can carry forward this period up to 15 years to obtain credit against MAT.
  3. One-time settlement option to settle the unpaid amount.
  4. Small businesses can take advantage of bank loans with low interest (around 1% to 1.5%) compared to standard loans.
  5. Tax rebate availability.
  6. Government preferential treatment in terms of certification and licences.
  7. Simple credit access low-cost industrial set-up patents, set-up, etc. not a result of tax incentives and other incentives.

Conclusion

When the Udyam Registration process is already easy, and when there are so many benefits associated with the registration, why step back? Government helps your ventures in numerous ways. These benefits are no way small, and you end up saving a lot of money every year. 

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: Is it possible to obtain registration for more than one business?

Ans:

Yes,you can obtain multiple registrations under the same Aadhaar card. However, just one registration is eligible against one PAN card.

Q: What are the necessary documents?

Ans:

You should have a valid Aadhaar card besides a PAN Number of your business proprietor to complete MSME registration.

Q: What are the eligibility criteria for availing Udyog Aadhar / MSME / Udyam Registration?

Ans:

Any person having an Aadhaar card linked with his/her valid mobile number is free to avail of the business registration.

Q: I already have Udyog Aadhar/MSME registration. Is there still a need to obtain Udyam Registration? Is migrating to Udyam compulsory?

Ans:

Registration even if you have already obtained MSME Registration / Udyog Aadhar. W.e.f 1st July 2020 MSME Registration/Udyog Aadhar is no longer valid, and you need to obtain Udyam Registration.

Q: Is MSME registration different from Udyam and Udyog Aadhaar registrations? If yes, then how?

Ans:

Udyog Aadhar/MSME Registration belongs to the old registration system. In this system, a UAM Number was generated. From 2020 1st July, Udyog Aadhar / MSME Registration has been shifted to Udyam Registration, a new system.

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