What advantages does UDYAM Registration have for the MSME Sector?
What Udyam Registration is is the primary concern of many nascent business owners. You are in the right place if you have the same question.
A government registration, sometimes referred to as an MSME registration or Udyam registration, comes with a recognition certificate and a personal identification number. This is for certification of small- and medium-sized firms.
The primary goal of the establishment of this facility was to give the government a means of giving the maximum benefits to Indian medium- or small-scale enterprises or industries that have registered via MSME using their Aadhar Card Number.
The 12-digit Aadhar Number of the entity’s owner, director, or proprietor must be provided. Whether the business or entity is a sole proprietorship, an LLP, a private limited company, or anything else, this is a must. The recognition certificate should have been given to it as part of the MSME registration procedure.
Who Can Register for Udyam?
Let’s clarify a few things. Organizations that qualify for Udyam Registration must be engaged in either service provision or the production, processing, or preservation of commodities. Alternatively put, traders that purchase, sell, import, or export items are not even qualified to apply for Udyam Registration.
But you should be aware that in order to qualify as a medium, small, or micro-enterprise and receive the MSME registration, a business must meet a certain set of requirements.
Types of businesses:
- Micro Enterprises: 1 crore rupees in investment and 5 crore rupees in revenue
- Small Enterprises: Up to Rs. 10 Cr. in investment, and up to Rs. 50 Cr. in revenue
- Medium Enterprises: Investment of up to Rs. 50 crore and revenue of up to Rs. 250 crore
Steps to Register with UDYAM
Udyam Registration is a simple process, and completing the forms is also not too difficult. The system is currently somewhat revitalised and requests relatively less data than the earlier process. It’s crucial to remember that MSME Registration is free, and the website doesn’t collect a formal fee for granting registration certificates..
It’s much easier and more productive now. Here is a short guide on how to register as an MSME and get Udyam Registration.
Visit the Official Website:
The first step in registering your business online is to go to the official Udyam Registration website.
The “For new Entrepreneurs who are not yet registered as MSME” option should be selected.
Type in your personal data:
Your name and your 12-digit unique Aadhar number would be the first details that you must provide. Then, select “Validate & Generate OTP.” An OTP will be sent to the registered mobile number. Activate the OTP.
Verification of PAN:
Choose the type of organisation, type in your PAN number, and then click “Validate.” PAN validation occurs.
The authorised signatory of a company, limited liability partnership, cooperative society, society, or trust must supply his AADHAAR number in addition to the company’s GSTIN and PAN.
Information on filing correspondence:
The complete postal address of the business, enterprise, or other entity must be provided after you have filled out all the information previously given. Additionally, please include the district, pin code, state, email address, and mobile number for your business.
Enter the Bank Information:
Along with the IFSC code of the relevant branch, you must input the active bank account number for your company. If you don’t already have it, you may find the IFSC code for the relevant branch on the bank’s website.
Enterprise Information:
You must identify the primary business activity of your company as “services” or “manufacturing”. The total number of people employed as well as the activities’ National Industry Classification (NIC) Code must be submitted.
The final step is to enter the total amount of money (in lakhs) that you have spent on your machinery or plant after filling out all the other information.
Benefits of Registering as a UDYAM
After registering a business and getting Udyam Registration, a person will be able to take advantage of a number of benefits. The best part about obtaining Udyam Registration is that it is a very straightforward process, and on top of that, one won’t need to deal with any paperwork. Check out the main advantages:
- Registration with Udyam facilitates obtaining government contracts.
- Bank loans are less expensive because of the Udyam because the interest rate is so low (up to 1.5% lower than the interest on conventional loans).
- For Udyam, there are several tax breaks available.
- Regardless of the industry, obtaining licenses, permits, and registrations becomes simple. Businesses registered under Udyam are given higher consideration when applying for government license and certifications.
- They are able to easily obtain financing at reduced interest rates.
- Registered Udyams receive tax, tariff, and capital subsidies.
- The cost of obtaining a patent or establishing an industry is decreased with registration. with the aid of the numerous discounts and concessions offered.
Suggested Read: Update Udyam Certificate
