The Indian government is promoting small and medium businesses throughout the country. MSME-registered businesses are eligible for a variety of tax breaks, privileges, and subsidies.

The government has developed Udyam Registration services to integrate all MSMEs onto one platform and reduce bureaucracy. It is solely based on self-declaration and Aadhaar information.

What is the meaning of Udyam Registration?

Small and medium businesses can apply for Udyam registration, often known as MSME registration.

It issues a certificate of recognition and a 12-digit unique number to eligible medium and small businesses so that they can take advantage of numerous benefits.

Previously, there was the EM-I/II (Entrepreneur Memorandum) system, which was time-consuming and entailed a lot of paperwork.

As a result, the government has introduced Udyam Registration, which is free and available through a single online, to make the procedure uniform for all MSME businesses.

So, if you haven’t yet registered with Udyam, your MSME business is missing out on a number of significant benefits. The procedure is easy to follow and does not cost anything. You can register as an MSME by following the steps (described below).

Udyam Registration Eligibility

The key question is, “Who can register for Udyam?” The answer is that businesses in the following industries are eligible:

• Manufacturing
• Processing
• Producing
• Good preservation
• Providing assistance

Furthermore, the Micro, Small and Medium Enterprise Development Act of 2006 (MSMED) requires that businesses meet certain criteria in order to obtain Udyam registration, including:

The Advantages of Udyam Registration

• Bank loans are less expensive because the interest rate is just up to 1.5 percent.
• There are numerous tax breaks and tariff incentives available.
• Getting government tenders is a plus.
• Credit at a reduced interest rate
• Obtaining a patent is less expensive.
• Loans of up to ten lakh rupees are available with no collateral.
• Current bank accounts can be opened without difficulty.
• For the settlement of NPAs, there is a one-time scheme.
• Advancements in priority industries
• Obtaining numerous permissions, licences, and registrations is simple.

Documents needed for online Udyam registration

• An Aadhaar number is required.
• The platform will collect PAN and GST details associated with firm turnover and investments in plant and machinery based on authentic Aadhaar.
• There is no need to attach any other documents.

Existing businesses can register with Udyam

All currently registered EM businesses — Part II OR (Entrepreneurs Memorandum) or UAM (Udyog Aadhar Memorandum Portal) must re-register at the portal under Udyam w.e.f. 01/07/2021.

All businesses registered until June 30, 2021, will be reclassified using the MSME’s criteria.

The deadline for existing businesses to register for Udyam on the platform is March 31, 2021.

Registration of new businesses with Udyam:

The following is a step-by-step guide to registering your MSME online:

Step 1: Visit the UDYAM online registration portal

Visit Udyam Registration and select the option for “Free new entrepreneurs who are not yet registered as MSME.”

Step 2: Verification of Aadhaar

A page will appear, prompting you to enter your “Aadhaar Number” and “Name of Entrepreneur.” Complete the form and click “Validate & Generate OTP.”

Step 3: Verification of PAN

You must authenticate your PAN after successful Aadhaar verification. Select the type of organization and input the PAN number. 

Step 4: Details of the ITR and GSTIN

You should make a note of it:

• Whether you filed an ITR for the previous year and how much it cost you.
• Do you have a GSTIN number?

Step 5: Locations of Plants

Fill in all of the facts about your plants here, such as the unit name and entire address.

Step 6: Organizations’ addresses and phone numbers

The next step is to fill out the organization’s complete postal address, which includes the company’s state, district, pin code, email address, and mobile number.

Step 7: Fill in your bank account information

Fill in the bank information after you’ve entered the aforementioned information. Enter the active bank account number and IFSC code for the organization.

Step 8: Details about the company’s operations

You must include the following information about your business:

• The main activity is: Manufacturing or Services
• Total number of people working
• Activities are classified under the National Industry Classification System (NICS).
• The total amount of money spent on plant and machinery (in lakhs)
• Select a district industry centre from the drop-down menu.

Step 9: Accept the statement

Accept the declaration and click “Submit and Get Final OTP” as the final step. The OTP will be sent to your registered phone number. After entering the OTP, click the “Final Submit” button.

For future reference, you will be given a registration number. All of the information will be verified by the portal. You will receive a “Udyam Registration Certificate” (E-registration document) on your email id if it is successful.

Applicants can contact the “General Manager of the District Industries Centre of the relevant District” if there is a discrepancy.

For Udyam registration, the terms “plant and machinery” and “turnover” have different meanings

Machines and equipment: Except for land and buildings, including furniture and fittings, it comprises all tangible assets.

Turnover: According to the Income Tax Act and the CGST Act,