The Indian government released a new plan on June 1st, 2020, aimed at improving the country’s economic status. This strategy was created with India’s small and medium-sized businesses in mind. They must apply through the Udyam Registration portal, which was previously known as Udyog Aadhar Registration, online. Medium and small firms will receive an electronic certificate once their registration is complete.
Procedure for New Applicants to Register for Udyam:
Enrolling with Udyam is a simple and straightforward process. Simply follow the instructions below to finish the registration.
- To begin, determine if you are a new or established entrepreneur who has not yet registered as an MSME or has EM-II.
- Click the Validate and Generate OTP button after entering the entrepreneur’s Aadhaar number and name.
- After the OTP has been verified, you will be routed to the main page.
- Choose the type of organization to which your business belongs.
- Fill in the needed information one by one.
- Check the declaration box and click the submit and create the final OTP button once you’ve finished the application.
- You will be given an Udyam Registration Number once your OTP has been verified, which will appear at the top of the screen.
Method of Registration for Existing Udyog Holders:
The bullets below will give you a general idea of how established businesses can participate in the process.
Companies that are currently registered under Part II of the EM laws must re-register. They may do so before or after June 1, 2020.
- If a company’s registration was completed before June 30, 2020, it will be classed.
- Anyone who registers before June 30, 2020, will have their registration valid until March 31, 2021.
- Udyam Registration is necessary for any firm that is registered with the Ministry of Micro, Small, and Medium Enterprises.
Who can take part in the Udyam registration process?
The Udyam registration process has been separated into categories based on the type of business. Consider the following for the service and manufacturing industries
- Microbusinesses must invest up to Rs 1 crore and generate a maximum of Rs 5 crore in revenue.
- Small and medium-sized firms should invest no more than Rs 50 crores. On the other side, the turnover should be less than Rs 250 crores.
- Small firms should invest a maximum of Rs 10 crores and generate a maximum of Rs 50 crores in revenue.
To finish the registration process, what documents and information are required?
You must submit the following papers to complete the registration process:
- A valid PAN card, Aadhar card, and voter identity card are required of the applicant.
- It is important to provide proof of the company’s registered address.
- A working email address and phone number are required.
Is it necessary to have a PAN and GSTIN to register with UDYAM?
Organizations that do not have a PAN or GSTIN have been granted a reprieve until December 31, 2021, according to the Ministry. They can register on a self-declaration basis until March 31, 2021, after which they will need a PAN and GSTIN.
What are the benefits of signing up with Udyam?
We’ll go over the advantages of Udyam registration in this section, so pay attention to the bullet points below.
A subsidy is provided by the government: Those industries that are registered under the developmental legislation of 2006, notably medium and small-sized ones, are eligible for a large government subsidy. It’s worth noting that the government provides financial assistance for registering a company’s patent name and promoting it.
There is no collateral: The Indian government established a program in which it chose to provide small-scale businesses with credit-based loans without demanding collateral.
ISO registration refund: Both larger and small businesses must invest a certain amount of money to get ISO registered. The best part is that they are reimbursed for this money by the Indian government.
Discount on electricity bills: Small and medium-sized businesses that use the Udyam registration site for the first time will earn a reduction on their electricity bills.
Obtain government tenders: Small and medium businesses with the Udyam certificate are allowed to bid on government contracts. Simultaneously, the government is likely to provide some assistance.
Other applications and registrations are not difficult to obtain: A corporation can easily receive other official certifications, paperwork, and even apply for other registrations after receiving an Udyam registration certificate.
Exemption from paying taxes: Companies that received the Udyam registration may be eligible for a tax break once more.
Participate in overseas promotions: The Indian government provides Udyam registration certificates to enterprises that want to participate in foreign fairs. This exposure helps to promote their products.