Anyone planning to start a micro, small, or medium firm can apply for MSME/UDYAM Registration online using the Udyam Registration portal. It is based on self-declaration, with no need to upload documents, papers, certificates, or proof. Upon registration, an enterprise will be granted a permanent identifying number known as the “Udyam Registration Number”. After completing the registration process, an e-certificate known as the “Udyam Registration Certificate” will be issued.

What is MSME Udyam Registration?

A government program called MSME Udyam Registration was created to acknowledge and assist micro, small, and medium-sized businesses (MSMEs) in India. It seeks to streamline the registration procedure and improve MSMEs’ ease of doing business by replacing the previous MSME registration system, known as Udyog Aadhaar. 

MSME/UDYAM Registration Everything you need know:

1. MSME registration is free, completely online, paperless, and based on self-declaration.
2. Registration as an MSME does not need the uploading of any documents or proof.
3. Only an Adhaar number will be required for registration.
4. The Aadhaar number shall be of the proprietor in the event of a proprietorship enterprise, or of the managing partner in the case of a partnership.
5. The organization or its authorized signatory must supply its GSTIN, PAN, and Aadhaar number.
6. PAN and GST-linked details on firm investment and turnover will be automatically retrieved from government databases.
7. The government’s online system would link seamlessly with the Income Tax and GSTIN systems.
8. PAN and GSTIN are necessary for Udyam registration starting April 1, 2021.
9. No enterprise may file more than one Udyam Registration.
10. Whoever willfully misrepresents or seeks to suppress the self-declared facts and figures appearing in the Udyam Registration or update procedure shall be subject to the penalties stipulated in Section 27 of the Act.
11. Those who have an EM-II or UAM registration, or any other registration issued by any authority under the Ministry of MSME, must re-register themselves.

How to Register for MSME Udyam:

1. Fill out the MSME registration form with all essential information online through the Udyam Registration site.
2. If you are a new entrepreneur who has not yet registered as an MSME, click the first link.
3. Enter your Aadhaar number and name, then click on ‘Validate & Generate OTP’.
4. After the verification process is completed, you must enter your PAN details. If you do not yet have a PAN card, select the No option.
5. Following this, you will be required to complete the form with fields 5-24.
6. When you complete the form, an OTP request will be issued to your phone again. Enter the OTP and the verification code to successfully submit the form.
7. After successfully registering, you will see a “Thank You” message with a Registration Number. Keep the number ready for future reference.
8. After submitting the application form, the approval and registration process may take 2-3 days to complete.
9. If the application is approved, the registration process will be completed, and the MSME certificate will be sent by email.

MSME/UDYAM Registration for Existing Enterprises

1. All current firms registered under EM-Part-II or UAM must register again on the Udyam Registration portal on or after July 1, 2020.
2. Following this notification, all firms registered till June 30th, 2020 will be classed.
3. Existing firms registered before June 30, 2020 will remain valid only until March 31, 2021.
4. An enterprise registered with any other organization under the Ministry of Micro, Small, and Medium Enterprises must register with Udyam Registration.

Advantages of MSME/UDYAM Registration

Registration for your MSME is not required. If you register, your business will be eligible for an excise privilege plan from direct taxes, as well as special programs from banks tailored to MSMEs.

Additionally, registered enterprises with an MSME certificate will benefit from many government departments, including power.

1. The MSME credential aids in obtaining government contracts.
2. A bank loan provides a 15% import subsidy for fully automatic machines.
3. It becomes easier to obtain permits, approvals, and registrations, regardless of the industry of business.
4. Compensation for ISO certificate expenses
5. MSME registration enables new entrepreneurs, merchants, and business owners to obtain loans at cheap interest rates.
6. Registered MSMEs receive tariff, tax, and capital subsidies.
7. Receives exemption under direct tax laws.
8. Get exceptional rebates and concessions on patents and industry setups.
9. One-time settlement fee for the unpaid amount.
10. Government prefers MSMEs.
11. Get credit guarantee plans from the government.
12. Special consideration for international trade shows.
13. Bar code registration subsidy
14. Support from your state government.

*Note that the MSME/Udyam registration process is absolutely free.

Conclusion

MSME Udyam Registration is an important step for MSMEs in India to acquire recognition, access incentives, and engage in government-provided growth possibilities. By streamlining the registration procedure and providing online services, the program intends to empower. MSMEs and foster their contribution to the economy.