Udyam Registration

Udyam Registration is an official process initiated by the Ministry of Micro, Small, and Medium Enterprises (MSME), Government of India, for the formal registration of micro, small, and medium enterprises (MSMEs). Introduced on July 1, 2020, it replaced the earlier Udyog Aadhaar Memorandum (UAM) system. The registration is designed to classify enterprises based on their investment and turnover. As per the new classification metrics, all Micro, Small, and Medium Enterprises (MSMEs) in India are collectively known as �¢??Udyam�¢??.

Entrepreneurs can apply for Udyam Registration online, and upon successful completion, the enterprise is assigned a permanent Udyam Registration Number and receives an e-certificate known as the Udyam Registration Certificate.This online, self-declaration-based process aims to streamline access to government benefits.

Benefits of having a Udyam Registration Number for your business include:

• Special Preference in Government Tenders: Registered Udyam enterprises receive preferential treatment in government procurement processes, enhancing their chances of securing contracts.

• Access to Collateral-Free Bank Loans: Udyam Registration facilitates access to bank loans without the need for collateral or mortgage, making it easier for MSMEs to secure financing.

• Interest Rate Exemption: Udyam Aadhar Registered businesses are eligible for a 1% interest rate exemption on bank overdrafts (OD), reducing their borrowing costs.

• Eligibility for Tax Rebates: Udyam enterprises can benefit from various tax rebates, providing significant tax savings.

• Priority in Licensing and Certification: Udyam Aadhar Registration offers priority consideration for obtaining government licenses and certifications, streamlining business operations.

• Tariff and Capital Subsidies: Registered MSMEs are eligible for tariff subsidies as well as tax and capital subsidies, lowering their operational costs.

• Electricity Bill Discounts: Udyam enterprises receive discounts on electricity bills, reducing their utility expenses.

• Protection Against Delayed Payments: Udyam Aadhar Registration offers protection against delayed payments from buyers, ensuring better cash flow management.

• Trademark and Patent Discounts: Registered businesses can avail of a 50% discount on government fees for filing trademarks and patents, making intellectual property protection more affordable.

• Expedited Dispute Resolution: Udyam enterprises benefit from faster resolution of disputes, minimising business interruptions and legal costs.

Any individual who intends to establish a micro, small, or medium enterprise can file for Udyam Registration online through the Udyam Registration portal. Eligible applicants include:

• Proprietorships

• Hindu Undivided Family (HUF)

• Partnership Firm

• One Person Company (OPC)

• Private Limited Company

• Public Limited Company

• Producer Company

• Limited Liability Partnership (LLP)

• Any Association of Persons

• Co-operative Societies

No enterprise is permitted to file more than one Udyam Registration. However, a single Udyam Registration can encompass multiple activities, including manufacturing, services, or both, ensuring comprehensive coverage under one registration.

To be eligible for Udyam registration, your business must fall under the category of a Micro, Small, or Medium Enterprise based on specific investment and turnover thresholds as outlined below:

Enterprise Type	Investment Criteria	Annual Turnover Criteria
Micro Enterprise	Up to Rs. 1 crore	Not exceeding Rs. 5 crore
Small Enterprise	Up to Rs. 10 crore	Not exceeding Rs. 50 crore
Medium Enterprise	Up to Rs. 50 crore	Not exceeding Rs. 250 crore

Businesses meeting these criteria can apply for Udyam Registration to avail of various benefits provided under the MSME schemes.

While applying for Udyam Registration is voluntary and not compulsory for entrepreneurs, it is highly recommended for most businesses to register shortly after their establishment. This early registration allows businesses to take full advantage of the various government benefits available to MSMEs.

When it comes to the documents required for the Online Udyam Registration process, it is worth noting that the application is primarily based on self-declaration. As such, uploading any additional documents during the registration procedure is unnecessary. Applicants must only provide their 12-digit Aadhaar Number, PAN (Permanent Account Number), and Bank Account details of the business to complete the registration process efficiently.

• PAN Card Number: The Permanent Account Number (PAN) of the business or the proprietor.

• Aadhaar Number: The Aadhaar card number is required as follows

  • Proprietorship Firms: Aadhaar card of the proprietor.

  • Partnership Firms: Aadhaar card of the managing partner.

  • LLPs, Companies, Cooperative Societies, or Trusts: Aadhaar card of the authorised signatory.

• GST Number (if applicable): The GST number is mandatory only for enterprises that require GST registration.

The Udyam Registration Certificate is valid for a lifetime and does not require renewal, provided the enterprise continues to meet the classification criteria for MSMEs.

The registration for MSMEs under the Udyam Registration Portal is entirely online and completely free of charge. There are no Udyam Registration Fees associated with the process.

While the registration process might seem tedious and time-consuming, PKRIDS can simplify it. Our expert team can assist you in obtaining your Udyam Udyog Registration quickly and with minimal effort, ensuring a hassle-free experience.

To obtain Udyam Registration through PKRIDS, simply follow our streamlined process designed to make registration quick and hassle-free. Begin by providing your basic business details, and we will take care of the rest, including validating necessary information and submitting the application on your behalf. Our experts will handle the complexities, ensuring that your business is accurately registered without any of the typical confusion. Upon completion, you'll receive your Udyam certificate, granting you access to various government benefits and support for your MSME.

Streamline your Udyam Registration with PKRIDS today!

Anyone wishing to establish a micro, small, or medium enterprise can apply for Udyam Registration.

• Partnership Firm

• One Person Company

• Proprietorships

• Private Limited Company

• Limited Company

• Producer Company

• Limited Liability Partnership

• Any association of persons

• Co-operative societies

• Any other undertaking

• Hindu Undivided Family (HUF)

Note: As per the Revised Guidelines for MSME, retail and wholesale trades will be allowed to register on Udyam Registration Portal.

The Registration for MSMEs under Udyam Registration Portal is entirely online, and there is no fee for MSME registrations. It is free of cost.

The registration process can be tedious and time-consuming, but PKRIDS can help you make it easier. With our assistance, you can quickly get your Udyog Aadhar/Udyam Registration done with minimal effort and hassle.

• Udyog Aadhar/ Udyam Registration will be an enterprise's permanent registration and primary identification number.

• MSME Registration is paperless and based on self-declaration.

• Udyam registration is permanent, and there will be no need for renewal.

• Any activities, including manufacturing, service, or both, may be specified in one Udyam Registration.

• Enterprises may register themselves on GeM (Government e-Portal) along with the Udyam Registration.

• MSMEs themselves can also be onboard on the TReDS Platform.

• The Udyam Registration may also help MSMEs in availing the benefits of the following Schemes of the Ministry of MSMEs:

• Credit Guarantee Scheme

• Public Procurement Policy

• Additional edge in Government Tenders & Protection against delayed payments.

• Udyam registered entity becomes eligible for priority sector lending from Banks.

The NIC code is a business code that is provided by the government to track the business proceedings for the organization under the micro, small and medium enterprises.

One can add a maximum of 10 NIC codes for Udyam registration.

One can add a maximum of 10 NIC codes for Udyam registration.

Udyam registration is the latest Registration procedure for the Micro, Small, and Medium Enterprises (MSME), launched on July 1, 2020, by the government to ease the registration process.

Anyone intending to establish micro, small, or medium enterprise may apply online. for Udyam registration.

MSME registration can be obtained by the following entities that fulfill the revised MSME classification criteria of annual turnover and investment:

• Individuals, startups, business owners, and entrepreneurs

• Private and public limited companies

• Sole proprietorship

• Partnership firm

• Limited Liability Partnerships (LLPs)

• Self-Help Groups (SHGs)

• Co-operative societies

• Trusts

These entities involved in the following activities are eligible for Udyam registration:

• Manufacturing Enterprises

• Service Enterprises

• Small retailers or wholesalers

Composite Criteria: Investment in Plant / Machinery and Turnover
Sl.No	Type of Enterprises	Investment	Turnover
1	Micro enterprises	Less than Rs.1 Crore	Less than Rs.5 Crore
2	Small enterprises	Less than Rs.10 Crore	Less than Rs.50 Crore
3	Medium enterprises	Less than Rs.20 Crore	Less than Rs.100 Crore

Earlier, the MSME registration covered only manufacturing and service industries. The scheme does not cover trading companies. However, in July 2021, the government announced that the wholesale and retail trade would come under the MSME classification and thus can apply for their wholesale/retail business registration.