Small and medium-sized enterprises (SMEs) play a vital role in the Indian economy, contributing significantly to job creation and economic growth. In recognition of this, the Government of India launched the Udyam Registration Portal on July 1, 2020, to streamline the registration process for micro, small, and medium enterprises (MSMEs) and provide them with various benefits. In this article, we will provide a complete guide to Udyam registration for small businesses in India.
What is Udyam Registration?
Udyam registration is a process of registering a business entity as a Micro, Small, or Medium Enterprise under the Micro, Small and Medium Enterprises Development Act, 2006. The registration process is entirely online. And businesses can complete it on the Udyam Registration Portal The registration is free of cost. And businesses need to provide some basic information to complete the process.
Who can Register for Udyam?
Any business entity that meets the following criteria can register for Udyam:
The entity should be a sole proprietorship, partnership firm, Hindu Undivided Family (HUF), private limited company, limited liability partnership (LLP), or any other type of business entity.
The entity should not exceed the investment limit specified for MSMEs, which are as follows:
Miniature Undertakings: Interest in plant and apparatus or hardware shouldn’t surpass Rs. 1 crore and turnover should not exceed Rs. 5 crores.
Small Enterprises: Investment in plant and machinery or equipment should not exceed Rs. 10 crores and turnover should not exceed Rs. 50 crores.
Medium Enterprises: Investment in plant and machinery or equipment should not exceed Rs. 50 crores and turnover should not exceed Rs. 250 crores.
Why Register for Udyam?
Udyam registration offers various benefits to small businesses, some of which are:
Easy access to credit: Udyam registered businesses can avail of various loans and schemes offered by banks and financial institutions at lower interest rates.
Protection against delayed payments: The government has introduced a provision for delayed payment protection to Udyam registered businesses, ensuring that payments are made on time.
Eligibility for government schemes: Udyam registered businesses are eligible for various government schemes such as credit guarantee schemes, technology upgradation schemes, and others.
Concession on government fees: Udyam registered businesses can avail of a 50% concession on government fees for patent and trademark registrations.
How to Register for Udyam?
The enrollment interaction for Udyam is altogether on the web and direct. Here is a step-by-step guide to complete the process:
Step 1: Visit the Udyam Registration Portal (udyamregistration.co)
The enrollment interaction for Udyam is altogether on the web and direct..
Step 3: Enter the Aadhaar number of the proprietor or authorized signatory of the business and validate it through the OTP sent to the registered mobile number.
Step 4: Enter the basic details of the business entity, such as the name, type, address, PAN, and bank details.
Step 5: Provide the details of the major activity of the business entity, such as manufacturing or service. And select the NIC code that corresponds to the activity.
Step 6: Upload the necessary documents, such as PAN card, Aadhaar card, and bank statement.
Step 7: Submit the application.
Once the application is submitted, a unique Udyam registration number (URN) is generated, which can be used to track the application status.
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Udyam registration is a simple and free process that offers various benefits to small businesses in India. By registering on the Udyam Registration Portal, businesses can access easy credit, protection against delayed payments, eligibility for government schemes. And a concession on government fees. The registration process is entirely online and can be completed in a few easy steps, making it accessible to all small business owners.
Udyam registration is a crucial step for small businesses looking to grow and expand in India. It not only offers various benefits but also provides legal recognition to the business entity, making it easier to participate in government tenders and access other opportunities. Therefore, small business owners in India must take advantage of this opportunity. And register their businesses on the Udyam Registration Portal to access the benefits and opportunities available to them.
Udyam registration is a significant initiative taken by the Indian Government to support the growth and development of small businesses. It is an excellent opportunity for small business owners to avail of various benefits, and the registration process is simple and accessible to all. By registering on the Udyam Registration Portal, small businesses can improve their financial and operational capabilities, expand their reach. And contribute to the Indian economy’s growth and development.