What is Udyam Registration and How Does it Differ from Udyog Aadhaar?

Udyam Registration is a self-declaration-based online registration process for MSMEs. It replaces the previous Udyog Aadhaar registration. Unlike Udyog Aadhaar, which requires documentation, Udhyam Ragistration simplifies the process by leveraging Aadhaar for verification. Very basic details of the Entity like, PAN details, Reg /Office Address, Nature of activities, No of Employees are required to be furnished on the Form. According to the parameters, your entity will receive a recognition certificate classifying you as “Micro, Small medium 

MSME Classification for Udyam Registration in India

The Indian government categorizes businesses into Micro, Small and Medium Enterprises (MSMEs) based on their investment in plant and machinery/equipment and annual turnover. This classification determines identifies business for Udyam Registration, which provides various benefits for MSMEs.

Let’s have a look at the MSME classification:

• Micro Enterprise:
  1. Investment: Up to Rs. 1 crore
  2. Turnover: Up to Rs. 5 crore
• Small Enterprise:
  1. Investment: Up to Rs. 10 crore
  2. Turnover: Up to Rs. 50 crore
• Medium Enterprise:
  1. Investment: Up to Rs. 50 crore
  2. Turnover: Up to Rs. 250 crore

Who can register as MSME?

Any business entity, including:

• Proprietorships
• Partnership firms
• Companies (Private & Public Limited)
• Limited Liability Partnerships (LLPs)
• Self Help Groups (SHGs)
• Co-operative societies
• Trusts

Why is Udyam Registration Crucial for Your MSME?

Udyam Registration offers many benefits for your MSME:

• Ease of Doing Business: Registration streamlines procedures and reduces compliance burden. On many government forms like Trade Mark Application, MSME Reg helps to have a reduction in the application fee amount
• Access to Government Schemes: Udyam registration gives access to various government schemes and subsidies.
• Financial Incentives: Registered MSMEs are eligible for loan schemes at concessional rates and priority sector lending. There is a significant difference in the rate of interest for an MSME and others
• Enhanced Credibility: A Udyam registration certificate acts as a credible document for your business.

Stepping into Udyam Registration: A Step-by-Step Guide

Udyam registration is a straightforward process. Here’s a breakdown:

Understanding Eligibility and Requirements:

• There are no complex document requirements.
• A valid Aadhaar number for the proprietor, managing partner, or authorized signatory is mandatory.
• PAN and GST details (if applicable) are automatically fetched for verification.

Step 1: Initiating the Registration Process

• Visit the official Udyam Registration portal 
• Select the registration option based on your business type (proprietorship, partnership, etc.).

Step 2: Completing the Udyam Registration Form

• Fill out the form with details like business name, nature of activity, and investment in plant & machinery, correctly
• Select the National Industrial Classification (NIC) code corresponding to your line of business activity.

Step 3: Submitting Your Application

• Carefully review the information entered before final submission.
• Upon successful submission, you’ll receive a Udhyam Ragistration Number (URN) and an e-certificate.

Avoiding Common Mistakes During Udyam Registration

• Incorrect NIC Code Selection: Choosing the wrong NIC code can lead to incorrect classification of business categories. This might in turn make your business ineligible to certain privileges
• Inaccurate Information: Ensure all details entered in the form are accurate and up-to-date.

Benefits of Udyam Registration for Your MSME

Udyam registration helps your MSME have access to various government schemes and business loans. It acts as a legal recognition for businesses that do not need registration under other categories It fosters growth, simplifies compliances, and unlocks access to valuable government schemes.

Keeping Your Udyam Registration Information Updated

Always ensure to update your Udhyam ragistration details if your business undergoes any changes like address or activity expansion, change in number of employees etc

Conclusion

Udyam Registration is a significant recognition for MSMEs in India. By registering, your business will have access to various benefits and government schemes and contribute to the overall smooth conduct of business. 

Feel free to Contact Clearbiz for Assistance:

Clearbiz offers expert guidance and support throughout the Udyam registration process. Our team can help you navigate the procedures and ensure a smooth registration experience. Drop a mail at info@clearbiz.in

FAQs on Udyam Registration:

• How long is the Udyam Registration certificate valid? 

At present its indefinitely valid , unless the entity is no longer can be classified as an MSME

• How do I know if my Udyam Registration is successful? 

You will be able to view and Download REG NO and certificate

• How to get Udyam registration certificate from Udyog Aadhar?

You can proceed by following the link for persons already reg under Udhyam Adhar to migrate

• How to update Udyog Aadhaar? 

The Udyam Registration portal provides details for making amendment to the original details furnished while taking the registration

For any assistance reach out to us at info@clearbiz.in or visit Clearbiz