Udyam Registration / Udyog Aadhar(MSME/SSI)

Udyam registration is a unified portal providing easy registration which is paperless and digital. This initiative of the Government started with an aim to reduce the transaction time of the enterprises and also promotes ease of carrying on a business for small to medium enterprises. The new registration process is simple, seamless and user friendly. Udyam registration is beneficial to the enterprises to avail benefits under most of the schemes of the Ministry of MSME. 

What is Udyam Registration? 

According to the recent notification issued by the Ministry of Micro Small Medium Enterprises (MSMEs) on 1st July 2020, the MSMEs registered under the Micro Small Medium Enterprises Development Act, 2006, are now called Udyam. The process of registration can be done by simply visiting the online Udyam portal. Following the registration process the enterprise is granted the Udyam Registration Certificate. It is important to note that an enterprise can be registered only once.

Any enterprise falling under the category of micro, small and medium (categorisation given below), and is a manufacturer or service provider, can apply for Udyam registration through online. It can be a proprietorship firm, Hindu Undivided Family (HUF), Partnership firm, Limited Liability Partnership (LLP), Private Limited Companies, Co-operative societies or Trusts.  

If you fall under the Government criteria, you can avail the benefits which is listed below.  

Eligibility for Udyam Registration 

Any enterprise falling under the MSME classification above can register for Udyam on the Udyam portal. Further, as per the recent office memorandum dated 02.07.2021, the wholesalers and retailers dealing with the trade of repairing motor vehicles and motorcycles are now eligible for Udyam registration.

Some of the key benefits of Udyam registration are: 

• In case of delayed payments, safeguard measures are provided against the services/materials supplied 
• Exemptions under direct tax laws like income tax 
• Bank loans with lower interest and collateral 
• Licenses and registration are made easier and at a subsidized fee. Ex: ISO registration, patent registration, barcode registration, etc 
• Concession on bills like electricity 

There are many more amazing benefits under the Udyam scheme that you can claim once you have registered. 

MSME Classification 

The MSME classification was revised with effect from July 1, 2020, and the micro, small and medium enterprises are determined based on turnover or investment towards the plant and machinery to be categorized as: 

1. For an enterprise to fall under the micro category, an investment of not more than ₹1 crore and a turnover does not more than ₹5 crores. 
2. For an enterprise to fall under the small category, an investment of not more than ₹10 crores and a turnover does not more than ₹50 crores. 
3. For an enterprise to fall under the medium category, an investment of not more than ₹50 crores and a turnover does not more than ₹250 crores. 

Essential Documents required are: 

• Aadhaar card of the proprietor / karta / partner / director / authorized signatory.  
• PAN card of the proprietor / karta / partner / director / authorized signatory.  
• GSTIN and PAN card of the company (when applicable)  
• MSME certificate, if the enterprise is already registered 

Details Required for Udyam Registration 

Details to be furnished  during the course of online registration for Udyam are: 

• PAN details of the enterprise 
•  Aadhaar number 
• Name of the enterprise 
• Email address and mobile number of the enterprise 
• Type of Organisation and other details of enterprise 
•  GSTIN details 
•  Address of the registered office 
• Bank details 
• Details of the activity of the enterprise such as manufacturer or service provider 
• National Industrial Classification Codes (NIC) 
• Details of the employees 
• Details of investment and turnover 

MSME registration is based on self-declaration and paperless. It can be registered through Udyam registration portal. The portal is user friendly for new MSMEs registration. It helps to guide the enterprise to get their Registration Certificate by providing the Name of the entrepreneur and the details of the Aadhaar card. 

Udyam Registration for Existing MSMEs 

Registration of the existing MSMEs to Udyam irrespective if they have the Udyog Aadhaar certificate is mandatory to avail the benefits under the recently updated notification. The process to register the existing MSME  to Udyam requires these steps: 

Step 1 -  Visit the online portal. 

Step 2 – Fill in the Udyog Aadhaar number provided during the MSME Udyog registration. 

Step 3 – The OTP will be then sent to the registered mobile number/email address as provided during the MSME Registration. 

Step 4 - After the OTP validation has been done, you will be redirected to the application for registration. 

Step 5 - Fill in the application form and submit it. 

Step 6 – Udyam Registration Certificate is sent to the registered email address after the review by the officials. 

How to Update Information in Udyam Registration 

After Udyam registration is done, if you need to update the information following steps should be followed: 

Step 1 - Visit the official website. 

Step 2 -  Enter the Udyam registration number, Applicant name, Email, Mobile Number. 

Step 3 -  Enter the registered mobile number and choose the OTP option as provided. 

Step 4 – You will be logged in and redirected to a form to update your details. 

Step 5 - Fill in that form and submit it. 

Step 6 – The updated Udyam Certificate is sent to the registered email address.