Navigating Udyam Certificate Registration: Benefits, Stepwise Process, and Documentation

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Navigating Udyam Certificate Registration: Benefits, Stepwise Process, and Documentation

The Udyam Registration Certificate is a mandatory certificate for MSME enterprises. This certificate includes a permanent registration number which is provided on the email of the entrepreneur once the registration is completed.

The Udyam registration  portal was launched on 1st July, 2020, it is an online portal through which MSME Registration becomes easy. Before launching the Udyam portal, registering an MSME required tons of documents and paperwork to complete. But now Udyam registration is completely online and doesn’t require any documentation. Check below the complete process of getting Udyam Registration Certificate.

What is Udyam MSME ?

The Micro Small and Medium Enterprises sector is a major contributor to the socio-economic development of the country. Also, it contributes to entrepreneurship development in semi-urban and rural areas.

As per the Micro, Small and Medium Enterprises Development Act 2006 has classified an MSME into categories:

1. Manufacturing Enterprises
2. Service Enterprises

The Udyam portal is a first tech system which is introduced to assist small and medium businesses to grow and provide all the necessary support. In Udyam registration, government sign-off and provision of an Udyam Certificate involves. 

The MSME Ministry has taken the new initiative by signing MoUs with the Ministry of Tourism and the National Small Industries Corporation for the sharing of Udyam data. Also, it further linked the Udyam registration with Digi Locker.

Benefits of Udyam Registration

According to the Union Minister of Micro, Small and Medium Enterprises
(MSME), within a span of 2 years around one crore Udyam MSME registration got done. The MSME sector contributes to the GDP, exports, and employment generation of the country.

The Udyam registration is now mandatory for all the MSMEs, as it provides many benefits. So, these are the following benefits of Udyam registration:

• Subsidized interest rate and collateral free loans from banks and financial institutes.
• Simplified process of registration, and obtaining license.
• Allow up to 50% discount on trademark and patent registration.
• Tax exemptions and reimbursement of ISO certification fees.
• To procure tenders the government security deposit can waive off.
• Government offers concessions on electricity and water bills.
• Have protection against the delayed payments.
• Special consideration will be provided to international trade.

Eligibility Criteria for Udyam Registration

To get an Udyam registration certificate, the enterprise must fulfill all the requirements set by the Ministry of Micro Small and Medium Enterprises (MSME). The requirements will be based on the investment and turnover. The following criteria is in the table below:

In addition, the enterprise must be a legal entity which is included in the business of manufacturing or service sectors. To get the benefits which are offered by the government, the enterprise. wholesalers and retailers must be eligible to apply.

The enterprises are not allowed to file more than one Udyam Registration certificate. All the manufacturing, service or both can be specified or added in one Udyam Registration.

Documents Required for Udyam MSME Registration

The process of Udyam MSME registration is completely online and paperless. As the process will only require a self-declaration, there is no need to submit any document or proof at the time of MSME registration.

Only the Aadhaar Number of the enterprise's owner or authorized signatory is required. Also, PAN and GSTIN number is mandatory to get Udyam certificate from the date April 1st, 2021. Some other details that you will required at the time of registration are:

• Business address proof in form of property tax receipts or utility bills.
• Bank account details.

Those who have EM-II or UAM registration or any other registration issued by any authority under the Ministry of MSME, will have to re-register themselves.

No enterprise shall file more than one Udyam Registration. However, any number of activities including manufacturing or service or both may be specified or added in one Registration.

Process to Register an MSME for Udyam Registration

The process of registering MSME is an easy process, and completely free. All credit goes to the user-friendly government portal and single window system. Complete process gets done in one place which saves time. Below is a step-by-step guide to register a new enterprise as an MSME:

1. Visit the Udyam portal and for new registration fill in the details such as Aadhar number, Name of entrepreneur and then click on Validate and Generate OTP.
2. The OTP will receive the registered mobile number and email which is connected with the Aadhaar card.
3. Fill the OTP to validate the Aadhar number.
4. A form will appear, now fill in all the details of the enterprise.
5. Fill in bank account details such as account number and IFSC code.
6. Enter NIC code and other necessary details helps in maintaining the business activity of the enterprise.
7. Verify the details and submit the application.

After registering, you will receive an e-certificate with 12 digit Unique Registration Number and a Unique QR code, that you can use to verify the Udyam registration and access enterprise details. The certificate is permanent and there is no need for renewal of registration.

Anyone who misrepresents the information or attempts to change the self-declared facts and figures appearing in the Udyam Registration or in the updation process. This is liable to penalty as specified under section 27 of the Act.

Conclusion

All the MSME enterprises who want to register fast without getting trapped into the long documentation process should register on Udyam. As mentioned above the process is easy and quick to complete on a single portal. There are many benefits of registering on Udyam as MSME, so the new or existing enterprises can get the benefit by getting the Udyam certificate.

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