Udyam registration or MSME registration is a voluntary certification scheme designed to uplift the financially disadvantaged Micro, Small, and Medium Enterprises (MSME) sector. Holders of Udyam registration gain access to various government-based schemes and benefits. The eligibility criteria for this registration are outlined in the MSME Act of 2006. To enrol under Udyam registration, individuals need to complete the Udyam Registration form and submit it on the Udyam Portal after undergoing OTP verification. This blog aims to provide a detailed discussion on the Udyam form and application process.
Criteria for Udyam Registration Form Eligibility
To be eligible for enrolment under MSME Act, businesses must meet specific criteria.
MSMEs in the Manufacturing Sector Eligibility Criteria
Micro enterprises: The investment should not exceed twenty-five lakh rupees.
Small enterprises: The investment is above twenty-five lakh rupees but does not exceed five crore rupees.
Medium enterprises: The investment should be above five crore rupees and should not exceed ten crore rupees.
MSMEs in the Service Sector Eligibility Criteria
Micro enterprises: The investment should not surpass ten lakh rupees.
Small enterprises: The investment is above ten lakh rupees but does not exceed two crore rupees.
Medium enterprises: The investment should be above two crore rupees but should not exceed five crore rupees.
Process for Accessing Udyam Registration Form
Mentioned below is the procedure to access the registration form:
1. Visit the Udyam Aadhaar Portal:
Go to the official Udyam Aadhaar portal.
2. Select the Option for New Entrepreneurs:
On the home page, locate and click on the option designated for “For new entrepreneurs who are not registered as MSME.”
3. Provide Aadhaar Details:
On the subsequent page, enter your Aadhaar number and name as per the provided Aadhaar card.
4. Complete OTP Verification:
Proceed to complete the One-Time Password verification process for security purposes.
5. Enter Organisation Type and PAN Details:
Fill in details regarding the type of organisation and provide PAN details as required.
6. Confirmation of GSTIN Availability and ITR:
Confirm the availability of Goods and Services Tax Identification Number, if applicable.
Provide details of the Income Tax Return for the preceding financial year.
7. Access Udyam Registration Form:
Upon successful completion of the above steps, the portal will open the e-application, which is the Udyam Registration form.
Udyam Registration Form Submission Process
The Udyam form for new applicants is designed to be a simplified e-application, requiring minimal details and no attachments. In the final section of this electronic form, the portal will prompt the applicant to submit the duly-filled form and validate their submission through OTP verification. This process aims to facilitate efficient and straightforward registration for Micro, Small, and Medium Enterprises.
Key Details to Include in the Udyam Registration Form
Upon accessing the Registration form, applicants are required to provide crucial information to complete the registration process. The following details should be carefully filled out:
1. Entrepreneur Details:
· Name of the entrepreneur as mentioned on Aadhaar/PAN.
· Contact number and email address.
2. MSME Ownership Categorisation:
· A table highlighting the categorisation of MSME ownership based on the percentage share/member/amount’s contribution.
3. Applicant’s Personal Information:
· Social category, gender, etc.
4. Enterprise Information:
· Name of the enterprise/plant/unit.
· Address of the enterprise/plant/unit.
· Official address of the enterprise.
5. Previous Registration Details:
· Details related to previous EM-II/UAM registration, if any.
6. Enterprise Status Information:
· Status of the enterprise, including the incorporation date.
· Confirmation regarding the commencement of business/production.
· Commencement date of business/production.
7. Bank Details:
· IFSC code and bank account number.
8. Business Activity Details:
· The prime activity of the unit.
· National Industrial Classification Code.
9. Employee Details:
· Information about the number of employees working in the establishment.
10. Financial Information:
· Investment in plant & machinery.
· Turnover of the plant/business.
Facilities for MSMEs in Udyam Registration Form
Upon completion of the Registration form, the portal provides MSME applicants with the opportunity to enrol in various schemes, including the Government e-Marketplace (GeM) and Trade Receivables Discounting System (TReDS). These schemes involve:
Government e-Marketplace (GeM) Portal
GeM is a dynamic web-based portal designed for government officers to facilitate procurement. It plays a crucial role in reforming public procurement, aligning with the government’s priorities.
GeM Benefits for Buyers:
1. Rich listing of items for individual categories of goods or services.
2. Search, compare, choose, and purchase facility.
3. Seamless 24×7 procurement availability.
4. Simplified and transparent buying process.
5. Vendor rating system for evaluation.
6. Intuitive dashboard for buying and tracking supplies and payments.
7. Simplified return policy.
GeM Benefits for Sellers:
1. Seamless access to concerned Government departments.
2. Minimal marketing expenses.
3. Availability of bids/reverse auctions on services/products.
4. New product recommendation facility.
5. Competitive pricing.
6. Intuitive dashboard for selling and tracking supplies and payments.
7. Simplified purchase procedures.
Trade Receivables Discounting System (TReDS) Portal
TReDS, which stands for Trade Receivables Discounting System, is a web-based platform introduced by the Reserve Bank of India in 2018. It enables MSME suppliers to discount their invoices and bills, providing a solution to maintain consistent capital backup despite compromised cash flow.
Salient Features of TReDS:
1. Unified platform for Buyers, Sellers, & Financiers.
2. Almost nil paperwork, reducing administrative burden.
3. Seamless access to funding.
4. Prompt and secure transactions.
5. Lucrative discount rates for MSMEs.
6. Seamless and secured data flow.
7. Standardised practices for transparency and efficiency.
These facilities aim to empower MSMEs by providing them with enhanced procurement options and financial solutions, contributing to their growth and sustainability.
Final Thoughts
The Udyam Registration Form is a vital gateway for Micro, Small, and Medium Enterprises to formalise their presence and unlock numerous benefits. Simplifying the registration process, it requires essential details, facilitating seamless enrolment. Beyond mere registration, the portal extends valuable opportunities for MSMEs, encouraging participation in government procurement through platforms like GeM and enhancing financial liquidity via TReDS. By streamlining access to schemes and fostering a transparent business environment, the Registration Form emerges as a catalyst for MSMEs, propelling them towards growth, competitiveness, and sustainable success in the dynamic economic landscape.
