Udyam Registration: Step-by-Step Process for Online Application

This article provides a step-by-step guide to the Udyam MSME registration process, including eligibility criteria, benefits, and  FAQs. By understanding the process and benefits of registering with Udyam, MSMEs can access government programs, credit facilities, and tax exemptions. micro, small, and medium-sized enterprises (MSMEs) form the backbone of the Indian economy. 

Udyam Registration: Step-by-Step Process for Online Application

The Indian government has taken various measures to encourage and support the development of MSMEs, including the launch of the Udyam registration portal. Registering with Udyam is a simple process that allows MSMEs to take advantage of the benefits offered by the government. In this article, we will guide you step-by-step through Udyam's online registration process.  

What is Udyam registration? 

The Udyam Registration is a registration procedure established by the Indian Ministry of Micro, Small, and Medium Enterprises to classify and recognize MSMEs. It replaced  Udyog Aadhaar's old registration system. Udyam registration is an online process that allows MSMEs to easily register and receive a unique identification number. It allows MSMEs to take advantage of government-provided benefits such as grants, programs, and loans. 

 Eligibility Criteria for Udyam Registration 

To be eligible for Udyam registration, a company must fall into the micro, small, or medium-sized enterprise category. A company's classification is based on its investments in machinery and equipment or fixtures for manufacturing or service activities. 

The eligibility criteria for registration with Udyam  are as follows:

  • Micro Enterprises: Enterprises with an investment of up to Rs. 1 crore in plant and machinery or equipment for production.

  • Small Enterprises: Enterprises with an investment of up to Rs.10 crore plant and machinery or equipment used in manufacturing or service activities 50 crore plant and machinery or equipment used in manufacturing or service activities. 

  • It should be noted that the company's assets are not considered for classification purposes under the  Udyam registry. 

Udyam Registration Process Step by Step 

Step 1: Visit the Udyam Registration Portal 

The first step in the Udyam registration process is to visit the Udyam Registration Online Portal at www.udyamregisteration.org. 

Step 2 - Enter your Aadhaar number  

The next step is to enter your Aadhaar number. Please note that the Aadhaar number must belong to an authorized MSME signer.  

Step 3 - Enter your name and contact details  

After entering your Aadhaar number you will be asked to enter your name and other details such as your mobile number and email address.  

Step 4: Verify  OTP 

After you have entered your data, you will receive an OTP on your registered mobile phone number. Enter  OTP to confirm your details.

 Step 5: Enter your company details  

After verifying your details,  enter your company details such as company name, type of business, and location.  

Step 6: Enter your bank details

You will also need to provide your bank details such as your bank account number and IFSC code. 

Step 7: Apply 

 After you have entered all the information, submit your application. After submitting your application, you will receive a certificate of enrollment. 

 Required Documents  for Udyam Registration 

 The following documents are required for Udyam registration: 

  •  Authorized Signer, Aadhaar Card 

  •  Company PAN Card 

  •  Bank Account Details 

  •  Proof of Company Address 

  •  GST Registration Certificate (Optional) 

 Benefits of Udyam -Registration 

Udyam registration offers several advantages for MSME. Here are some of the benefits: 

 Access to government programs and grants: 

MSMEs registered with Udyam are eligible for various government programs and grants. These programs and grants include the Micro and Small Business Loan Guarantee Fund Scheme, the Prime Minister's Job Creation Plan (PMEGP), etc.  Banks and financial institutions lend at a lower interest rate than MSMEs  registered with Udyam. 

Lending to Priority Sectors: 

Banks are required to extend a  percentage of their total lending to priority sectors, including MSMEs. MSMEs registered with Udyam are eligible for senior sector loans from banks.

Eligibility for Various Tax Exemptions: 

MSMEs registered with Udyam are entitled to various tax exemptions and benefits such as Alternative Minimum Tax Exemption (MAT), Excise Duty Exemption, etc. 

Protection against Late Payments: 

MSMEs registered with Udyam are protected against late payments by buyers. The buyer is obliged to make payments to MSŚP within 45 days after taking delivery of the goods or services. 

Summary 

Registration with Udyam is a simple process that allows MSMEs to take advantage of the benefits offered by the government. It is important for MSMEs to register on the Udyam registration portal to gain access to various programs and grants provided by the government. By following the step-by-step  Udyam registration process, MSMEs can easily register and receive a unique identification number.

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