Udyam Registration is an online registration process introduced by the Government of India to replace the previous Udyog Aadhaar Memorandum (UAM) registration system. It is the registration process for micro, small, and medium enterprises (MSMEs) in India. Here’s all you need to know about Udyam Registration
Eligibility
The Udyam Registration is open to businesses that fall under the micro, small, and medium enterprise categories as per the revised MSME definition in India. The eligibility criteria based on investment and turnover are as follows
a. Micro Enterprise Investment up to INR 1 crore and turnover up to INR 5 crore.
b. Small Enterprise Investment up to INR 10 crore and turnover up to INR 50 crore.
c. Medium Enterprise Investment up to INR 50 crore and turnover up to INR 250 crore.
Online registration
Udyam Registration is a simple and user-friendly online process. The registration can be done through the official Udyam Registration portal (https//udyamregistration.gov.in/). The portal requires the necessary information about the enterprise and its proprietor, partner, or director, including Aadhaar number, PAN (Permanent Account Number), bank details, and business activity details.
Single registration
With Udyam Registration, a business needs to register only once. Unlike the previous system, there is no need for renewal or updating based on turnover or investment changes. The registration is valid for the lifetime of the enterprise.
Document requirements
During the Udyam Registration process, businesses are not required to upload or submit any documents. The registration is based on self-declaration of information provided by the enterprise.
Udyam Registration number
Upon successful registration, an enterprise receives a unique Udyam Registration Number. This number serves as a recognition of the MSME status and can be used for availing benefits and concessions under various government schemes.
Integration with other systems
The Udyam Registration portal is integrated with various government systems, including the Goods and Services Tax (GST) network and the Income Tax Department. This integration facilitates automatic verification and validation of the details provided during registration.
Benefits of Udyam Registration
a. Access to government schemes
Registered MSMEs can avail various financial and non-financial benefits offered by the government, such as subsidies, loans, incentives, and support for skill development and technology upgradation.
b. Priority sector lending
Registered MSMEs may get preference for loans and credit facilities from banks under the priority sector lending category.
c. Protection against delayed payments
The government has established a mechanism for addressing delayed payment issues by buyers to registered MSMEs.
d. Enhanced market access
Udyam Registration provides visibility and credibility to MSMEs, enabling them to participate in government tenders and public procurement processes.
e. Intellectual Property Rights (IPR) support
Registered MSMEs can avail reimbursement of fees for acquiring IPR registrations such as patents and trademarks.
Transition from Udyog Aadhaar Memorandum (UAM)
Udyam Registration was introduced to replace the Udyog Aadhaar Memorandum (UAM) registration system. UAM was an offline registration process where MSMEs filled out a form and obtained a Udyog Aadhaar Number. With the introduction of Udyam Registration, all existing UAM holders were required to migrate to the new system.
Udyam Registration for existing MSMEs
Existing MSMEs that were registered under Udyog Aadhaar Memorandum (UAM) before the introduction of Udyam Registration are required to migrate to the new system. The process for migration involves providing the Udyog Aadhaar Number and other details on the Udyam Registration portal.
Provisional registration
Udyam Registration offers a provision for enterprises that are not yet registered but want to avail the benefits of an MSME. They can apply for provisional registration by providing basic information about the business. The provisional registration is valid for 1 year, during which the enterprise must obtain permanent registration by fulfilling the necessary requirements.
Validity and updating of Udyam Registration
Udyam Registration does not have a validity period. Once registered, the enterprise is considered an MSME for its lifetime, unless it exceeds the prescribed investment or turnover limits. Enterprises are required to update their information periodically to ensure accuracy, especially in the case of upward changes in investment or turnover.
Udyam Registration certificate
After successful registration, the enterprise receives a Udyam Registration certificate. This certificate serves as proof of registration and can be downloaded from the Udyam Registration portal. The certificate contains details such as the Udyam Registration Number, date of registration, and other relevant information.
Udyam Registration for multiple branches
An enterprise with multiple branches can obtain a single Udyam Registration for the entire organization. The registration is based on the PAN (Permanent Account Number) of the enterprise, and the branches are linked to the main registration.
Also read-udyam registration benefits
Conclusion
It’s important to note that the information provided here is based on the Udyam Registration system in India. The process and details may vary in other countries. For accurate and up-to-date information, it is advisable to refer to the official Udyam Registration portal or consult professionals familiar with the specific regulations in your jurisdiction.
