The Indian government announced a new plan on June 1st, 2020, aimed at improving the country’s economic position. This strategy was created with India’s small and medium-sized enterprises in mind. They must apply for Udyam Registration, which was previously known as Udyog Aadhar Registration, online. Medium and small enterprises will receive an electronic certificate once their registration is complete.
Procedure for New Applicants to Register for Udyam:
Enrolling with Udyam is a simple and straightforward procedure. Simply follow the instructions below to finish the registration:
- To begin, determine if you are a new or existing entrepreneur who has not yet registered as an MSME or has EM-II.
- Click the Validate and Generate OTP button after entering the entrepreneur’s Aadhaar number and name.
- After the OTP has been validated, you will be routed to the main page.
- Choose the type of organisation to which your business belongs.
- Fill in the essential information one by one.
- Check the declaration box and click the submit and produce the final OTP button once you’ve finished the application.
- You will be granted an Udyam Registration Number after your OTP has been validated, which will show at the top of the screen.
Method of Registration for Existing Udyog Holders:
The bullets below will give you a general idea of how current firms may participate in the process.
Companies that are currently registered under Part II of the EM rules must re-register. They may do so before or after June 1, 2020.
- If a company’s registration was completed before June 30, 2020, it will be classed.
- Anyone who registers before June 30, 2020, will have their registration valid until March 31, 2021.
- Udyam Registration is needed for every firm that is registered with the Ministry of Micro, Small, and Medium Enterprises.
Who may take part in the Udyam registration process?
The Udyam registration procedure has been split into sections based on the type of business. Consider the following for the service and manufacturing industries:
- Microbusinesses must invest up to Rs 1 crore and generate a maximum of Rs 5 crore in revenue.
- Small and medium-sized enterprises should invest no more than Rs 50 crores. On the other side, the turnover should be less than Rs 250 crores.
- Small enterprises should invest a maximum of Rs 10 crores and generate a maximum of Rs 50 crores in revenue.
To finish the registration procedure, what papers and information are required?
You must submit the following papers to complete the registration process:
- A valid PAN card, Aadhar card, and voter identity card must be held by the applicant.
- The company’s registered address must be verified.
- A working email address as well as a phone number
Is it necessary to have a PAN and GSTIN to register with UDYAM?
Organizations that do not have a PAN or GSTIN have been granted a reprieve until December 31, 2021, according to the Ministry. They can register on a self-declaration basis until March 31, 2021, after which they will need a PAN and GSTIN.
What are the benefits of signing up with Udyam?
We’ll go through the advantages of Udyam registration in this part, so pay attention to the bullet points below.
The government offers a subsidy: Industries that are registered under the developmental act of 2006, notably medium and small businesses, are eligible for a large government subsidy. It’s worth mentioning that the government provides financial assistance for registering a company’s patent name and promoting it.
There is no collateral: The Indian government created a scheme in which it chose to give small-scale businesses credit-based loans without needing collateral.
Refund for ISO registration: Both medium and small businesses must pay a certain amount of money to get ISO registered. The best part is that they get reimbursed for this money by the Indian government.
Discount on electricity bills: Small and medium-sized businesses who use the Udyam registration site for the first time will earn a reduction on their power costs.
Other applications and registrations are not difficult to obtain: A firm can easily get other official certifications, papers, and even apply for further registrations after receiving an Udyam registration certificate.
Exemption from paying taxes: Companies that got the Udyam registration may be eligible for a tax break once more.
Participate in promotional activities in other countries: The Indian government provides Udyam registration certificates to enterprises that want to participate in foreign fairs. This exposure helps to promote their products.
Suggested Read- how to print udyam certificate
In this blog, I have discussed the whole process of udyam registration including benefits and method of registration. I hope this blog will be helpful for you.