India’s Ministry of Micro, Small, and Medium Enterprises (MSME) has always played a pivotal role in fostering economic development by supporting small-scale industries. A critical part of this ecosystem is the Udyam Registration, a government certification that provides official recognition to Micro, Small, and Medium Enterprises. In July 2020, the government of India introduced a new and simplified process for MSME registration, known as Udyam Registration, replacing the earlier Udyog Aadhaar registration system. The Udyam portal allows businesses to apply for their MSME registration online, streamlining the process and making it more efficient for business owners.

This article aims to guide you through the process of New Udyam Registration apply online in India, along with its benefits and eligibility criteria.

What is Udyam Registration?

Udyam Registration is a system introduced by the Indian government to offer formal recognition to MSMEs (Micro, Small, and Medium Enterprises). It allows businesses to access various benefits, including tax exemptions, government subsidies, and easier access to loans and credit. Udyam Registration replaces the previous system of Udyog Aadhaar and offers a single-window registration process that is entirely online.

The introduction of Udyam Registration simplifies the registration process for MSMEs and helps the government keep track of industry growth and challenges more effectively.

Eligibility for Udyam Registration

The classification of MSMEs is based on their investment in plant and machinery or equipment and their annual turnover. The following criteria apply:

1. Micro Enterprises:
• Investment up to ₹1 crore
• Annual turnover up to ₹5 crores
2. Small Enterprises:
• Investment up to ₹10 crores
• Annual turnover up to ₹50 crores
3. Medium Enterprises:
• Investment up to ₹50 crores
• Annual turnover up to ₹250 crores

If your business meets any of these criteria, it is eligible for Udyam Registration.

Steps to Apply for New Udyam Registration Online

The Udyam Registration process is entirely online and free of charge. Here are the steps to apply:

Step 1: Visit the Udyam Registration Portal

Go to the official Udyam Registration portal, which can be accessed at https://udyogregistration.in/.This is the official platform where you can register your business.

Step 2: Enter Aadhaar Details

Aadhaar is mandatory for Udyam Registration. For individual proprietors, the Aadhaar number of the owner is required. For partnership firms or LLPs, the Aadhaar of the managing partner is needed. In the case of companies, the Aadhaar number of the Director must be used.

Step 3: Verify the Aadhaar with OTP

Once the Aadhaar details are entered, an OTP (One-Time Password) will be sent to the registered mobile number associated with the Aadhaar card. Enter this OTP to verify your identity and proceed.

Step 4: Fill in Business Information

After Aadhaar verification, you will be required to fill out details about your business, such as the business name, type of organization, address, bank details, and more. Ensure that all the information provided is accurate and up-to-date.

Step 5: PAN and GSTIN Details

If your business is registered as a company or LLP, PAN (Permanent Account Number) and GSTIN (Goods and Services Tax Identification Number) details will be required. The government has made PAN and GSTIN mandatory for medium and large enterprises, though they are optional for micro-enterprises.

Step 6: Submission of the Application

Once all the details are filled in, review your application for accuracy. After verification, submit the form. Upon successful submission, you will receive a registration number and a certificate as proof of your Udyam Registration.

Benefits of Udyam Registration

Udyam Registration offers a wide array of benefits to MSMEs:

1. Access to Government Schemes: MSMEs with Udyam Registration are eligible for various government schemes such as the Credit Guarantee Scheme, and the Public Procurement Policy.
2. Ease of Access to Credit: Registered MSMEs can avail easier loans and credits with lower interest rates. Banks provide collateral-free loans to Udyam-registered businesses under the Credit Guarantee Fund Scheme.
3. Protection from Delayed Payments: Registered MSMEs are entitled to protection against late payments by buyers. The MSMED Act stipulates that buyers must make payments within a stipulated time, failing which, the buyer will be required to pay a compounded interest.
4. Tax and Subsidy Benefits: MSMEs registered under Udyam enjoy various tax benefits, subsidies, and concessions, making it easier for them to sustain operations.
5. Export Benefits: Udyam-registered businesses can also avail of various export promotion schemes provided by the government.
6. Easier Market Access: Udyam Registration ensures that MSMEs are prioritized when it comes to government contracts, tenders, and projects.

Conclusion

Udyam Registration has revolutionized the way MSMEs operate in India by simplifying the registration process and providing access to a wide range of benefits. By making the process entirely online and user-friendly, the government aims to encourage more businesses to come under the formal sector and enjoy various incentives and protections. If your business falls within the MSME category, completing the Udyam Registration online is a critical step toward sustainable growth and development.