What is the Udyam Registration Certificate and its Benefits for MSME

Udyam registration certificate that helps businesses register as micro, small, and medium enterprises. It is easier to register as it is paperless, and the registration process is free of cost. 

What is Udyam Registration? 

Udyam registration is also known as MSME registration. The Ministry of Micro, Small, and Medium (MSME) issues Udyam registration certificates. Only the Ministry of MSME, Government of India, has the authority to issue Udyam registration; no other portal or agency has any authority to do so. It issues a Permanent Registration number consisting of 19-digit unique numbers and has a dynamic QR Code from which the details of the enterprise can be accessed. 

Eligibility for Udyam Registration:

The Government allows businesses to register themselves as micro, small, or medium enterprises based on their investment in plant and machinery or equipment and their turnover. Suppose anyone intends to become a micro, small, and medium enterprise. In that case, they may file Udyam Registration in the Udyam Registration portal. The enterprise can be classified as a micro, small, or medium enterprise based on the following criteria. 

Suppose the enterprise crosses the above-specified ceiling limits in any of the two criteria of investment and turnover. In that case, it will immediately cease to exist in that category and be placed in the next higher category. Still, the enterprise is placed in the lower category if it goes below the ceiling limits specified in the two criteria of investment and turnover.

Documents for Udyam Registration:

• PAN of the Enterprise
• Aadhaar number (Proprietor in the case of Proprietorship firm, Managing Partner in the case of Partnership Firm, Kartha in the case of Hindu Undivided Family)

In the case of a Company, a Limited Liability Partnership, or a Cooperative Society or Society Trust, its authorized signatory shall provide its Aadhaar number.

• GSTIN Number (Mandatory from 01-04-2021)

Along with this, information on phone numbers, E-mail addresses, business commencement date, social category of the owner in case of a proprietorship firm, and bank account details with IFSC Code are also required. There is no need to upload physical documents.

How to Register for Udyam Or MSME Registration:

The Government facilitates fully online-based and paperless registration for the ease of small and medium businesses. Self-declaration should be made by micro, small, and medium businesses during the application process. As mentioned earlier, except for the portal of the Government of India, no private or any other portal is entitled to do MSME registration. 

1. Go to the Udyam Registration portal using this link: https://udyamregistration.gov.in. The Ministry of MSME’s home page will be opened.
2. Select the option “For new entrepreneurs who are not registered yet as MSME or those with EM-II.” This is used for first-time registration. 
3. The Aadhaar number validation form will appear. You need to enter the aadhaar number and the name of the entrepreneur. Click the “Validate and Generate OTP” to proceed with the verification process. 
4. The OTP will be sent to a registered mobile number. Enter the received OTP and click “Validate” to proceed. 
5. Once the verification is complete, the page will be directed to the PAN Validation page. Here, select the “Type of Organization “, enter “PAN” number, “ Name of PAN Holder “,  “DOB OR DOI as per PAN” and then click “Validate” to proceed. Also, select “Yes Or No” whether you have filed the previous year’s ITR and possess GSTIN. 
6. Now, the Udyam Registration form will be opened. Fill out the details asked, like Name of the entrepreneur, mobile number, email, social category, gender, specially-abled, name of the enterprise, location, previous udyam aadhaar memorandum (UAM), status of enterprise, bank details, the major activity of the unit, NIC code (National Industrial Classification), employee count (male and female). 
7. Next, fill out the details of investment in plant and machinery or equipment and turnover details. Click on the self-declaration checkbox and submit; the final OTP will be received. 
8. Enter the received OTP and submit the application. Congratulations! Your Udyam registration online is completed. Your Udyam e-registration certificate will be sent to your registered email address.

After completing the procedure, you will get a permanent e-certificate with 19 digital URNs and a unique QR code. The details about the enterprise can be accessed by scanning the QR code. 

Benefits of Udyam Registration

Here are some of the benefits of Udyam Registration:

• The registration is paperless and free of cost.
• It will be a permanent registration and basic document for an enterprise.
• Higher preferences for getting government licenses and certificates.
• Protection against delayed payments by providing a single online platform for raising grievances.
• Helps in technology up-gradation in MSEs by providing an upfront capital subsidy of 15 percent in a scheme called Credit Linked Capital Subsidy Scheme (CLCSS)-  a scheme by the Ministry of MSMEs.
• It is easier to participate in Government tenders and auctions if registered with Udyam.
• Concessions in the electricity bill are also taken by giving an application to the electricity board.
• Banks provide collateral-free loans.
• Reimbursement of ISO Certification fees.
• MSMEs can avail of a 50% subsidy on patents and trademark registration.
• MSMEs are classified under priority sector lending by the RBI.

Conclusion

It can be concluded that a certificate issued for MSMEs for registration under Udyam is called a “Udyam Registration Certificate”. The Government simplified the registration process and improved access to take benefits for MSMEs to operate and expand their business. 

Deepvue is a platform where the Udyam Verification API allows businesses to verify the registration status of MSMEs by entering their Udyam registration number. It provides accurate and reliable information from the Udyam portal, helping businesses prevent fraud and ensure they partner with legitimate MSMEs.

Frequently Asked Questions (FAQ’s)