Udyam Registration is a process of registration for Micro, Small, and Medium Enterprises (MSMEs) in India. The registration process was launched in July 2020 and replaced the earlier process of Udyog Aadhaar Memorandum (UAM) registration. The main objective of Udyam Registration is to simplify the registration process for MSMEs and provide them with various benefits.
The registration process is entirely online and can be done through the Udyam Registration Portal. MSMEs can register themselves by providing basic information such as their name, Aadhaar number, business address, and bank details. After the registration process, the MSMEs are provided with a unique identification number called the Udyam Registration Number.
One of the primary benefits of Udyam Registration is that it provides MSMEs with easy access to various government schemes and benefits, such as credit facilities, tax benefits, and subsidies. Udyam Registration also helps in enhancing the credibility of the registered business and improving its visibility to potential investors and customers.
The eligibility criteria for Udyam Registration are based on the turnover of the registered business. Micro-enterprises with a turnover of up to Rs. 5 crore, small enterprises with a turnover of up to Rs. 50 crore, and medium enterprises with a turnover of up to Rs. 250 crore are eligible for registration under Udyam.
Also read: print udyam registration certificate
Udyam Registration is a simplified and online registration process for MSMEs in India that provides various benefits and opportunities to registered businesses. The registration process requires basic information and is easy to complete. By registering under Udyam, MSMEs can access various government schemes and benefits and enhance their credibility in the business ecosystem.
Eligibility criteria for renewal of Udyam Certificate
The Udyam registration certificate is issued by the Ministry of Micro, Small and Medium Enterprises (MSME) to eligible businesses. To renew the Udyam certificate, the following eligibility criteria need to be met:
- The business should be a registered Udyam entity and should have a valid Udyam registration number.
- The business should have filed all the necessary returns and complied with all the requirements of the Udyam registration process.
The business should have updated its details in the Udyam registration portal within the prescribed timeline, as required by the MSME Ministry.
- The business should have a valid PAN (Permanent Account Number) and GST (Goods and Services Tax) registration.
- The business should not have any pending dues or liabilities towards the government, including taxes, loans, or any other statutory obligations.
- The business should comply with all the relevant regulations and laws related to its industry and sector.
If the business meets all the above criteria, it can apply for the renewal of the Udyam certificate on the Udyam registration portal. The renewal process is similar to the initial registration process, and the business needs to provide all the necessary details and documents for verification.
Udyam Registration Fees and Validity: What You Need to Know
Udyam registration is a process that enables micro, small, and medium enterprises (MSMEs) to obtain a certificate recognizing their business entity as an MSME. Here’s what you need to know about the fees and validity of Udyam registration:
Udyam Registration Fees: There is no fee charged for Udyam registration. The process is completely free of cost, and businesses can register themselves on the Udyam registration portal without paying any fee.
Validity of Udyam Registration: The Udyam registration certificate is valid for a lifetime. Once a business obtains the Udyam certificate, it will remain valid unless it crosses the threshold limits specified for the MSME sector. In such cases, the business needs to upgrade its registration and obtain a new certificate.
Updation of Udyam Registration: It is essential to update the Udyam registration certificate in case of any changes in the details submitted during registration, such as turnover or investment. The business needs to update its registration within the prescribed time limit after the end of the financial year.
Benefits of Udyam Registration: Udyam registration offers several benefits to businesses, including access to government schemes, subsidies, and credit facilities. It also helps in building the credibility of the business and increasing its visibility, especially for procurement purposes.
Udyam registration is an essential process for businesses in the MSME sector. The process is completely free of cost, and the certificate obtained is valid for a lifetime. However, businesses must ensure that they update their registration in case of any changes and take advantage of the benefits offered by the registration process.
Udyam Registration vs. MSME Registration: What’s the Difference?
Udyam registration and MSME registration are both processes that enable micro, small, and medium enterprises (MSMEs) to obtain a certificate recognizing their business entity as an MSME. However, there are some differences between the two:
Name and Registration Process: The name and registration process for Udyam registration have been changed as per the notification issued by the Ministry of Micro, Small and Medium Enterprises (MSME) in June 2020. Earlier, the registration process was known as MSME registration, and the certificate was issued as MSME certificate. However, now the registration process is known as Udyam registration, and the certificate issued is known as the Udyam certificate.
Threshold Limits: The threshold limits for classification of MSMEs have been revised under the Udyam registration process. Earlier, the classification was based on investment in plant and machinery or equipment, whereas now, the classification is based on both investment and turnover.
Registration Criteria: The registration criteria for Udyam registration are stricter compared to the earlier MSME registration process. Businesses need to provide additional details and documents such as GSTIN, PAN, and Aadhaar, and the registration process is entirely online.
Validity: The Udyam certificate is valid for a lifetime, whereas the MSME certificate was valid for five years. However, businesses need to update their Udyam registration certificate in case of any changes in the details submitted during registration, such as turnover or investment.
Summary
Udyam registration is the revised version of MSME registration, and there are some significant differences between the two processes. The Udyam registration process is stricter and requires businesses to provide additional details and documents. The Udyam certificate is valid for a lifetime, and businesses need to update their registration in case of any changes.