Udyam Registration is also called as MSME Registration and has been brought by Indian govt. for small and medium businesses to sign up. It started on July 1, 2020, by the Ministry of Micro, Small & Medium Enterprises. When a business signs up, it becomes a 'Udyam,' and the process is called 'Udyam Registration.' After signing up successfully, businesses get a special number and a certificate.
What is MSME Classification?
When the government had started with the MSME registration in 2006, it was firstly based solely on how much a business invested in machines or equipment. The government later changed this to include yearly investment and sales. They also removed the difference between manufacturing things and providing services under MSME.
Revised MSME Classification Criteria
The revised criteria are as follows:
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Criteria
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Micro
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Small
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Medium*
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Investment & Annual Turnover
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< Rs.1 crore & < Rs.5 crore
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< Rs.10 crore & < Rs.50 crore
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< Rs.50 crore & < Rs.250 crore
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What is Udyam Aadhar Registration?
Small businesses can get the Indian government’s MSME registration, also known as Udyam aadhar registration. If a business fits the MSME criteria, they can apply for this registration on the government's Udyam website. Everything happens online there. While it's not a must for small businesses to register MSME, it's a good idea because it comes with perks like tax breaks, help to kick-start a business, and easier access to credit and loans.
Benefits of Udyam Registration in India
The major benefits of Udyam aadhar registration include:
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Benefit
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Description
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Special Preference in Government Tender Procurement
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Registered Udyam enterprises receive priority consideration in government tender procurement.
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Access to Bank Loans without Collateral/Mortgage
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Udyam aadhar registration facilitates access to bank loans without the need for collateral or mortgage.
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1% Interest Rate Exemption on Bank Overdraft (OD)
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Registered Udyam enterprises are eligible for a 1% interest rate exemption on bank overdrafts.
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Eligibility for Various Tax Rebates
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Udyog aadhar registration provides eligibility for various tax rebates.
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Priority Consideration for Government Licensing and Certification
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Registered Udyam enterprises are given priority consideration for government licensing and certification.
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Tariff Subsidies and Tax and Capital Subsidies for Registered Udyam Enterprises
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Registered Udyam enterprises are entitled to tariff subsidies and tax and capital subsidies.
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Discounts on Electricity Bills
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Udyog aadhar registration offers discounts on electricity bills.
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Protection Against Delayed Payments from Buyers
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Registered Udyam enterprises are protected against delayed payments from buyers.
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Tax Rebates
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Udyam Regn enables businesses to avail of tax rebates.
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Expedited Dispute Resolution
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Udyam Regn facilitates expedited dispute resolution.
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Eligibility for Udyog Aadhar registration
Given below is the eligibility criteria for micro small and medium enterprises registration:
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Entity Type
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Description
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Individuals, Startups, Business Owners as well as Entrepreneurs
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Includes individuals engaged in businesses and also startups operating within the given defined criteria, and business owners and entrepreneurs meeting specified conditions.
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Private and Public Limited Companies
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Private limited companies and public limited companies complying to stipulated criteria.
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Sole Proprietorship
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Sole proprietors managing business operations independently.
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Partnership Firm
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Partnerships meeting criteria for turnover and investment.
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Limited Liability Partnerships
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LLPs that fulfil prescribed annual turnover and investment conditions.
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Self Help Groups
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Self-help groups involved in economic activities.
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Co-operative Societies
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Co-operative societies meeting defined criteria.
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Trusts
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Trusts engaged in economic activities within specified parameters.
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Entities falling under any of these categories must assess their annual turnover and investment against the revised MSME classification criteria to determine eligibility to Udyam register.
Documents Required for Udyog Aadhar registration
These are the documents needed for a msme register online:
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Document Required
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Description
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Aadhar Card
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Proprietorship Firm: Aadhar number of the proprietor
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Partnership Firm: Aadhar number of the managing partner
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Hindu Undivided Family: Aadhar number of the Karta
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Company, LLP, Cooperative Society, Society, Trust: Aadhar number of the organisation or authorised signatory
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PAN Card
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Mandatory for all enterprises
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GST Identification Number
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Required if the enterprise is liable to be registered under GST Law
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Further, the following documents are also required:
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No.
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Document Name
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Description
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1
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Proof of Ownership
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Documentation proving ownership, ex-, agreement, utility bills, property documents
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2
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Proof of Rent Payment
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For rented premises: payment proof of utility bills, No Objection Certificate
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3
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Purchase Bills
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Copies of purchase bills for capital goods and raw materials purchased
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4
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Sale Bills
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Copies of sale bills for all products sold
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5
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Partnership Deed
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Copy of partnership deed if the entity is a partnership or LLP
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6
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Memorandum of Association
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MoA of the company
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7
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Articles of Association
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AoA of the company
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8
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Resolutions Copy
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Copies of resolutions from shareholder and board meetings
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9
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Permits and Licences
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Copies of permits or industrial licences required under relevant acts
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10
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Affidavit
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Affidavit on Rs. 10 non-judicial stamp paper, attested and notarized
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11
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Purchase Bill of Machinery
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Purchase bill for installed machinery
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12
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Bills for Plant and Machinery
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Bills related to purchasing and installing plant and machinery
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13
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Accounting Information
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Information on accounting, bank account statements
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Udyam Registration Process
Given below is the Udyog aadhar registration process:
The MSME registration process happens entirely online. You can do it on the government's website called udyamregistration.gov.in. When you register online, you can choose from two categories:
- If you're a new entrepreneur and haven't registered as MSME yet, or if you're in EM-II.
- If you're already registered as UAM, or if you've registered as UAM through Assisted filing before.
For New Entrepreneurs or Those with EM-II Registration
Step 1: Go to the Udyam Registration Portal
- Visit Udyam Registration Portal homepage
- Click "For New Entrepreneurs who are not Registered yet as MSME or those with EM-II"
Step 2: Aadhaar Validation
- Enter Aadhaar number and name, click "Validate and Generate OTP"
Step 3: PAN Verification
- Verify PAN by entering "Type of Organisation" and PAN Number, click "Validate PAN"
Step 4: Udyam Registration Form
- Fill in personal and enterprise details on Udyam Registration form
Step 5: Enter Investment and Turnover Details
- Enter investment and turnover details, select declaration, click "Submit and Get Final OTP"
- Receive Udyam Registration Certificate via email, check status on Udyog aadhar registration Portal
For Entrepreneurs Already Having UAM
To initiate the process, follow these steps:
- Go to the Udyam Registration Portal:
- Click on relevant option for existing UAM registration.
- Enter Udyog Aadhaar Number and Choose OTP Option:
- Enter Udyog Aadhaar Number and select OTP preference.
- Validate and Generate OTP:
- Click "Validate and Generate OTP" to receive OTP.
- Fill Registration Details on MSME Form:
- Validate with OTP and fill required details.
- Completion of Udyam aadhar registration:
- Submit form to complete registration process.
- Confirmation or Udyam aadhar registration Certificate may be sent via email.
Udyam Aadhar Registration Fees
Getting registered for MSME Udyam doesn't cost anything. The government doesn't ask for any money to get you registered. You can sign up for it on the official website, the Udyam Portal, without paying anything.
MSME Registration Certificate
In India, businesses can get their MSME Registration Certificate from the Ministry of MSME. Sometimes it is also called as the Udyog aadhar registration Certificate. When business owners finish signing up their business with MSME, they get this certificate. It has a special QR code that holds details about the business.
MSME Registration Number
Every registered small business gets a unique number from the Ministry of MSME. This number is called the 'Udyam/MSME Registration number'. It's a 19-digit number and it's on the MSME Registration Certificate.
Checking Udyog Aadhar Registration Status
To verify the status of your MSME Regn, follow these steps:
- Visit the Portal for the Udyam aadhar registration:
Access the Udyam aadhar registration portal through the official website.
- Go to 'Print/Verify' Option:
Click on the 'Print/Verify' option available on the portal.
- Select 'Verify Udyam Registration Number':
Within the 'Print/Verify' section, choose the 'Verify Udyam Registration Number' option.
- Enter Details and Verify:
There you have to enter the 'Reference Number,' and then the captcha code and then you have to click on the 'Verify' button to confirm the MSME Regn status.
How to Check Udyam Regn by Name?
You can retrieve your MSME regn number through the following process:
- Visit the portal of the Udyam Regn:
Access the Udyam Regn Portal through the official website.
- Go to 'Print/Verify' Option:
Click on the 'Print/Verify' option available on the homepage.
- Choose 'Forgot Udyam/UAM No.':
Under the 'Print/Verify' section, select the 'Forgot Udyam/UAM No.' option.
- Select Registration Option:
Choose the appropriate registration option based on your circumstances.
Opt for the OTP option for verification.
- Enter Mobile/Email Address:
Provide the mobile number or email address associated with your registration.
Click on the 'Validate & Generate OTP' button.
Enter the OTP received on your mobile/email.
- Get MSME Registration Number:
After successfully entering the OTP, your MSME registration number will be displayed.
Why Choose StartupFino for MSME Registration?
StartupFino helps you register your MSME businesses. We'll guide you through the whole process, from the beginning to meeting all the rules and regulations once you're registered.
After you finish registering your business with MSME Udyam, you'll get a certificate called the Udyam Registration Certificate from the Ministry of Micro, Small and Medium Enterprises.
