Udyam Registration – Get Udyam Registration Online

The government launched the Udyam portal on 1 July 2020 to boost Micro, Small and Medium Enterprise (MSME) registrations. The MSMEs must apply for MSME registration, also known as the Udyam registration, through the official Udyam portal. Udyam registration is required for MSMEs to obtain the benefits the government provides to the MSME sector.

What is Udyam Registration?

Udyam registration is an e-certificate the government provides to the MSMEs in India. The Udyam registration replaced the Udyog Aadhaar Memorandum (UAM) registration. Though the Udyam registration is not mandatory, it is beneficial for the MSMEs to apply for this registration as it is required to avail of benefits that fall under the MSME category. These benefits help MSMEs to grow and boost their business across India.

The government provides the MSMEs with a unique identification number and an MSME recognition certificate when they obtain the Udyam registration. The Udyam registration certificate certifies that the enterprise is eligible to get government benefits provided to MSMEs. The validity of the Udyam registration is till the existence of the enterprise. The government is facilitating ease of doing business to MSMEs by giving a permanent registration, i.e. Udyam registration.

Eligibility for Udyam Registration

Enterprises with the below threshold limits, including trading, manufacturing and service enterprises, are eligible to apply for Udyam registration: 

• Micro enterprises: Enterprises whose investment in machinery, plant or equipment is below Rs.1 crore and whose turnover is below Rs.5 crore.
• Small enterprises: Enterprises whose investment in machinery, plant or equipment is below Rs.10 crore and whose turnover is below Rs.50 crore.
• Medium enterprises: Enterprises whose investment in machinery, plant or equipment is below Rs.50 crore and whose turnover is below Rs.250 crore.

Benefits of Udyam Registration

• Udyam registration is a prerequisite to get the benefits of government schemes or programmes of the Ministry of MSME, such as the Credit Linked Capital Subsidy Scheme, Credit Guarantee Scheme, Public Procurement Policy, etc.
• Udyam portal is integrated with the income tax portal, GST identification systems and government e-marketplace.
• MSMEs having Udyam registration are eligible for priority sector lending from banks. 
• MSMEs are allowed Minimum Alternate Tax (MAT) credit to be carried forward for 15 years instead of 10 years.
• Udyam registration helps to obtain cheaper bank loans as the interest rate is low, i.e. around 1 to 1.5%. 

How to Get Udyam Registration Online?

To obtain the Udyam registration, MSMEs should apply on the Udyam portal. The registration process is entirely online. Following are the steps for getting Udyam registration online:

Step 1: Visit the Udyam registration portal.

Step 2: On the homepage, click on the ‘For new entrepreneurs who are not registered yet as MSME or those with EM-II’ option.

Step 3: Enter the ‘Aadhaar Number’, and ‘Name of Entrepreneur’ and click on the ‘Validate & Generate OTP’ button.

Step 4: OTP will be sent to the entrepreneur’s mobile number linked with the Aadhaar card. Enter the OTP and click on the ‘Validate’ button. 

 Step 5: Once the Aadhaar is validated, the PAN verification page will appear. Enter the ‘Type of Organisation’, ‘PAN’ number and click on the ‘Validate’ button. Select if you have filed your previous year ITR and if you have GSTIN.

Step 6: The Udyam registration application form will open. Enter the details such as the name of the entrepreneur, mobile number, name of the enterprise, location of the plant/unit, address of the enterprise, status of enterprise, bank details, the activity of the unit, NIC code and number of persons employed.

Step 7: Enter the investment in plant and machinery details and turnover details, select the declaration, and click on the ‘Submit and Get Final OTP’ button.

Step 8: Enter the OTP and submit the form. You will get the Udyam e-registration certificate in the email.

Documents Required for Udyam Registration

Below are the documents which an entrepreneur requires to apply for the Udyam registration:

• PAN card number.
• Aadhaar number.
• GST number.

When the MSME is a proprietorship firm, the Aadhaar card number will be of the proprietor. When it is a partnership firm, the Aadhaar card number will be of the managing partner, and if it is a Hindu Undivided Family (HUF), it will be of the Karta. When the MSME is a Limited Liability Partnership (LLP), company, cooperative society or trust, the Aadhaar card number will be of the authorised signatory.

The GST number is not mandatory for all enterprises to apply for Udyam registration. It is mandatory for only those enterprises that require GST registration under the GST law.

Udyam Registration Fees

There are no charges for Udyam registration, and it is free of cost.

Udyam registration is a paperless, self-declaration and zero-cost registration for MSME entrepreneurs. All businesses should obtain Udyam registration to avail of MSME schemes benefits and MSME loans. The Udyam registration portal is the official government portal through which MSME entrepreneurs can get Udyam registration online free of cost.