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What is Udyam registration?

Udyam Registration is an online process for registering a Micro, Small, or Medium Enterprise (MSME) business in India. It is administered by the Ministry of Micro, Small and Medium Enterprises and was launched on July 1, 2020. The registration process is entirely digital and aims to simplify the registration process for MSMEs.

What is the purpose of Udyam registration?

The purpose of Udyam Registration is to simplify the process of registering MSME businesses in India and promote ease of doing business for them. It is an initiative launched by the Ministry of Micro, Small and Medium Enterprises to provide small businesses with various benefits, such as easier access to credit, subsidies, and government schemes. By obtaining a unique identification number through Udyam registration, small businesses can get recognition as an MSME.

The Udyam registration process is entirely online, replacing the earlier process of registering as a Udyog Aadhaar MSME, and making it more accessible and less time-consuming. The registration certificate provides several benefits to small businesses, including priority sector lending, access to various government schemes, exemption from direct tax laws, and protection against delayed payments. These benefits can significantly help MSMEs grow and compete in the market.

How to apply for udyam registration online?

To apply for Udyam Registration online, follow the below steps:

  1. Visit the official Udyam Registration portal (https://udyamregistration.gov.in/).
  2. Click on the “For New Entrepreneurs who are not Registered yet as MSME” button on the home page.
  3. Enter your Aadhaar number and name as per Aadhaar card, and click on the “Validate and Generate OTP” button.
  4. Verify your Aadhaar details by entering the OTP received on your registered mobile number.
  5. Enter the required details such as business name, type, address, and bank account details.
  6. Select the appropriate NIC code(s) for your business activity.
  7. Upload the necessary documents such as PAN card, GSTIN, and other relevant certificates.
  8. Review the details entered and submit the application.
  9. Pay the registration fee online.
  10. After successful submission, you will receive an acknowledgment with a unique Udyam registration number.

Note: The Udyam Registration process is entirely online, and no offline application is available. The portal is available in both English and Hindi languages.

Udyam Registration can be done by business owners themselves, as it is a straightforward and online process. However, some businesses may prefer to use the services of consultants or experts who can help them with the registration process. These consultants or experts may charge a fee for their services. It is essential to verify the credentials and reputation of any consultant or expert before engaging their services.

We offer consultancy services for udyam registration. Kindly read our Rules.

Who is not eligible for Udyam registration?

Although most MSMEs in India are eligible for Udyam registration, there are certain entities that are not eligible for this registration. These include businesses that operate outside India, fall under the Cooperative Societies Act, engage in activities such as chit funds, nidhi companies, or agricultural activities, and those that have not yet commenced operations or business.

In addition, NRI individuals and international companies are also not eligible for Udyam registration. However, it’s important to note that these entities may still be eligible for other forms of registration or licenses required for their respective businesses. It is advisable to consult with a legal expert or advisor to determine the appropriate registration process for such entities.

Is it necessary to renew Udyam registration every year?

No, Udyam registration does not need to be renewed every year. Once a business is registered under Udyam, the registration is valid for a period of 5 years. However, before the expiry of the registration, the renewal process needs to be completed by filling out a form and submitting it along with the necessary documents to the relevant authorities. It is important to note that Udyam registration is mandatory for eligible businesses as it provides various benefits, such as access to credit, tax benefits, and opportunities for government tenders and schemes.

Is Udyam registration mandatory for companies in India?

Yes, Udyam registration is mandatory for all companies registered under the Companies Act of 2013 or any previous acts. However, if a company falls under the definition of a micro, small, or medium enterprise (MSME), it can apply for Udyam registration voluntarily to avail of the benefits provided by the government for MSMEs.

Udyam registration is primarily intended for businesses that are not registered under the Companies Act and meet the definition of an MSME. Sole proprietorships, partnerships, LLPs, and other similar entities can apply for Udyam registration to obtain an MSME registration certificate.

Therefore, while Udyam registration is mandatory for companies registered under the Companies Act, they can still choose to apply for it voluntarily to take advantage of the benefits it offers.

What is the fee for Udyam registration?

There is no fee for UDYAM Registration on official Government Portal.

The fee for Udyam registration on the consultancy portal is Rs. 1499/- as a one-time payment, with no hidden costs. Once the fee is paid, businesses can obtain their Udyam registration number and certificate in just 15 minutes. Consultancy experts will assist you soon.

Does Udyam registration require GST registration?

No, Udyam registration does not require GST registration. However, MSMEs with a turnover exceeding the GST threshold limit are required to obtain GST registration. The GST threshold limit for businesses with a turnover of goods up to Rs. 40 lakhs (Rs. 10 lakhs for Northeastern and hill states) and a turnover of services up to Rs. 20 lakhs in a financial year is exempted from GST registration.

Businesses exceeding the threshold limit are required to register for GST. If an MSME’s turnover is below the GST threshold limit, they are not required to obtain GST registration, but they can still opt to register for GST voluntarily to take advantage of the benefits such as input tax credit, which can help MSMEs reduce their tax liability.

Therefore, while GST registration is not mandatory for Udyam registration, MSMEs with a turnover exceeding the GST threshold limit are required to obtain GST registration.

Are MSME Registration, Udyog Aadhaar Registration, and Udyam Registration different? If so, what is the difference between them?

MSME Registration and Udyog Aadhaar Registration are part of the old system of registration under the MSME department. The Udyog Aadhaar Memorandum Number (UAM Number) was generated under this system. However, with effect from July 1, 2020, the MSME Registration/Udyog Aadhaar has been migrated to the new portal called Udyam Registration.

Udyam Registration is a new and upgraded online process for MSME business registration under the Ministry of Micro, Small and Medium Enterprises. The registration process is entirely digital, and businesses can obtain a unique identification number that serves as recognition of their existence as an MSME.

The key difference between Udyam Registration and the earlier systems is that Udyam registration is a more streamlined and simplified process, offering a host of benefits to MSMEs. Additionally, Udyam Registration is a one-time process with a validity of five years, whereas Udyog Aadhaar and MSME Registration require renewal after a year.

Therefore, while MSME Registration and Udyog Aadhaar Registration belong to the old system, Udyam Registration is the new and upgraded portal for MSME business registration.

What is udyog aadhar migration process?

Udyog Aadhaar migration process refers to the process of transferring the old Udyog Aadhaar/MSME registration data to the new Udyam Registration portal, which was launched on July 1, 2020. Under the migration process, businesses that had previously registered under the Udyog Aadhaar/MSME system were required to migrate their data to the new Udyam Registration portal to obtain a new registration certificate with a unique identification number.

The migration process involved verifying the existing data, transferring it to the new portal, and updating any changes or modifications to the information. The migration process ensured that all the previous Udyog Aadhaar/MSME registrations were smoothly transferred to the new portal without any loss of data.

The Udyog Aadhaar migration process was necessary to ensure that businesses registered under the old system were able to take advantage of the benefits offered by the new and upgraded Udyam Registration portal.

What is benefits of Udyam registration?

The Udyam Registration Certificate is an e-certificate that provides a unique identification number to micro, small, and medium-sized enterprises (MSMEs) in India upon completion of the registration process through the Udyam Registration portal. The certificate offers numerous benefits to MSMEs, which includes:

  1. Government schemes: MSMEs with a Udyam registration certificate can avail themselves of various government schemes, such as loans, subsidies, and other benefits offered by the government. This can help MSMEs to reduce their costs and access much-needed funds for growth and expansion.
  2. Easy access to credit: Banks and financial institutions prefer lending to MSMEs with Udyam registration as it provides a level of authenticity and recognition to the enterprise. This makes it easier for MSMEs to secure loans and credit facilities at lower interest rates, with minimum collateral requirements.
  3. Protection against delayed payments: Udyam registered MSMEs can file complaints against delayed payments under the MSME Delayed Payment Act. This act provides for the settlement of such disputes, ensuring timely payments and better cash flow for the MSMEs.
  4. Tender eligibility: MSMEs with Udyam registration are eligible to participate in government tenders, which can provide significant business opportunities for growth and expansion. This can help MSMEs to diversify their business and explore new avenues for revenue generation.
  5. Reduced fees: MSMEs with Udyam registration can avail reduced fees for various government registrations, including trademarks and patents. This can help MSMEs to save costs and invest more in their business operations.
  6. Exemption from direct tax laws: MSMEs with Udyam registration can avail several exemptions under direct tax laws, such as a tax holiday for the first three years after incorporation. This can help MSMEs to reduce their tax liability and focus more on business growth.

In summary, Udyam registration certificate provides MSMEs with several benefits, making it easier for them to do business and compete in the market.

What is the process to verify whether a company is registered as a micro, small, or medium enterprise (MSME) or not?

To check whether a company is registered as an MSME, one can follow the steps mentioned below:

  1. Visit the Udyam Registration portal (https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm).
  2. Click on the “Udyam Registration” tab.
  3. Enter the company’s PAN card number in the “Validate Your Udyam Registration” section.
  4. Click on “Validate & Generate OTP” to generate a one-time password (OTP).
  5. Enter the OTP received on the registered mobile number or email ID of the company.
  6. Click on “Validate” to check the company’s MSME registration status.

Once the validation process is complete, the portal will display the Udyam registration number and other details related to the company’s registration as an MSME. This process can help individuals and businesses to verify whether a company is registered as an MSME or not.

Udyam Registration: MSME Registration in India,

Benefits of Udyam Registration: Growing Your Business,

Udyam Registration Process: Online Registration Guide,

Udyam Eligibility: Who Can Register?,

Udyam Registration Fees: Cost of Registration,

GST & Udyam: What You Need to Know,

Udyog Aadhaar Migration: What to Expect,

Udyam Certificate: Benefits for Your Business,

Check MSME Registration: Company Verification,

Udyam Benefits: Growth Opportunities for MSMEs.