Businesses which fall under the Medium, Small and Micro “MSME” category and what do get registered as an MSME need to get “Udyam Registration certificate” for their business. According to the Micro, Small and Medium Enterprises Development Act and the notification dated 26th June, 2020 an enterprise or business can be classified as an MSME if their turnover and investment is within the limits specified as under:
Micro
Investment : less than Rs. 1 crore and turnover less than Rs. 5 crores
Small
Investment : less than Rs. 10 crores and turnover less than Rs. 50 crores
Medium
Investment : less than Rs. 50 crores and turnover less than Rs. 250 crores
Earlier to get MSME recognition businesses had to get “Udyog Aadhaar”. Since 1st July, 2020 “Udyog Aadhaar” has been replaced by “Udyam Registration”. Hence, businesses now need to apply for “Udyam Registration” for MSME recognition.
Documents required to file Udyam Registration:
To get Udyam Registration, you don’t have to submit any document.
But to enter the information in the application form you will need following supporting documents:
1. Aadhaar card of the applicant,
2. PAN of the business (In case of Proprietorship concern, Proprietors PAN is sufficient)
3. Address proof of business premises to enter office address.
4. Bank passbook or cheque or bank statement of the bank account opened in the name of the business.
5. Latest ITR and financials to enter the turnover and investment details.
FAQs on UDAYAM Registration :
Q: Is it mandatory to get Udyam Registration?
A - It is not mandatory to get Udyam Registration. But all the benefits and schemes launched or announced for MSMEs can be availed only if you have Udyam Registration.
Q: Earlier I had “Udyog Aadhaar”, now should I get “Udyam Registration”?
A - Yes. You need to re-register your business and get “Udyam Registration” before 31st March 2021. After this date, the old “Udyog Aadhaar Registration” will not be considered valid.
Q: Can new businesses apply for Udyam Registration?
A - No, only existing businesses can apply for Udyam Registration.
Q: Can a business have more than one Udyam Registration?
A - No, a business cannot have more than one Udyam Registration.
Udyam Registration Benefits :
There are numerous benefits of registering and getting Udyam certificate for your business, here we have mention 16 benefits of Udyam registration.
These benefits are listed out as per the schemes offered by the Ministry of MSME for the development of micro small and medium business enterprises in India. The same benefits can also be availed by the Udyam registration certificate holder and prove to be advantageous for them.
Interest rate Subsidy on Bank loans
Collateral free loans from banks
Protection against delayed payments, against material/services supplied
Special beneficial reservation policies in the manufacturing/ production sector
Ease of obtaining registrations, licenses, and approvals.
MSME Registered entity gets eligible for CLCSS (credit linked capital subsidy scheme)
International trade fair special consideration
Government security deposit (EMD) waiver (Useful while participating tenders)
Electricity bills concession
Stamp duty and registration fees waiver
ISO certification fees reimbursement
Direct tax laws rules exemption
NSIC performance and credit rating fees subsidy
Patent registration subsidy
Barcode registration subsidy
Industrial Promotion Subsidy (IPS) Subsidy Eligibility