What Is Udyam/MSME Registration?
The Ministry of MSMEs launched the Udyam Registration Portal to digitize India and streamline processes. It is an improved, tech-first system to assist small and medium businesses to grow and provide all the necessary support
Udyam Registration, also known as MSME Registration, involves the government signoff and the provision of an Udyam Recognition Certificate and a Unique Number. This certification is essential if you seek legal and operational certification for small or medium businesses. The Ministry of MSME, Government of India, conducts Udyam registration for micro and small businesses
Eligibility For Registration
Per the latest guidelines, Udyam certificate benefits are only available to businesses that meet specific criteria. Registration for Udyam depends on three key aspects: type of enterprise, annual turnover, and investment of the MSME.
- An MSME must fall into one of three categories: micro, small, or medium
- MSMEs receive different benefits based on their annual turnover. Registration and its benefits are available to micro-enterprises with turnovers up to 5 crores. Small firms with a turnover of up to Rs 75 crores and medium firms with a turnover of up to Rs 250 crores are also eligible
- Udyam registration benefits micro-businesses with investments below one crore. The investment limit for small businesses should not exceed Rs 10 crores, and for medium businesses, it should be below Rs 50 crores.
Documents Required For Udyam Registration
- Documents Required For Udyam Registration
- GST Certificate
- Copy of the entrepreneur's Aadhaar
- Social Category of entrepreneur
- Phone number
- E-mail address
- Business Commencement Date
- A/C No. and IFSC Code (or a copy of the passbook)
- Number of employees (with male and female divisions)
- The nature of the business
- The latest audited financial statements
Benefits Of Udyam Registration
Here are some of the Udyam certificate benefits:
- Borrowers get collateral-free loans from banks
- Licensing, approvals, and registrations are accessible
- Special considerations are given to international trade
- The government offers concessions on various bills, including electricity bills
- Organizations registered with Udyam get eligible for Credit Linked Capital Subsidy Scheme
- Reimbursement of ISO certification fees
- Protection against late payments or supplied services
- Bank loans with subsidies and lower interest rates
- Production/manufacturing sectors have special reservation policies
- Direct tax laws rule exemption
- Subsidy on NSIC performance fees and credit rating
- Barcode registration subsidy
- Patent registration subsidy
