If you are a new entrepreneur with micro, small, or medium-firm, you must register on the Udyam site, which was built by the Ministry of Micro, Small, and Medium Enterprises (MSME) in 2020. According to the government, the MSME will be known as Udyam, and the registration process will be known as ‘Udyam Registration‘. At the conclusion of the process, the MSME will be given a permanent registration number as well as an online certificate. A dynamic QR code will be included in the certificate, which may be used to access the site and learn more about the company.
There is no need to renew the registration because it is a one-time operation that may be completed through Champions Control Rooms and DICs using the MSME ministry’s single window systems. Except for the Udyam website and single window systems, no other private online or offline system, business, or individual is authorized to perform free MSME registrations. To prevent bogus portals, look for the national symbol in the left corner of the website, as well as the MSME Ministry printed beside it.
Furthermore, even if your business operates in a variety of activities such as manufacturing, service, or both, you only need one Udyam registration. These must be declared or added to the registration at the same time.
Re-registration is required for those who already have an EM-II, UAM, or any other registration issued by a Ministry of MSME authority.
First, let’s look at who the MSMEs are:
- A microenterprise is defined as a business that has a capital investment of less than Rs 1 crore and generates less than Rs 5 crore in revenue.
- A small firm is defined as one that invests less than Rs 10 crore and generates less than Rs 50 crore in revenue.
- A medium enterprise is one with a revenue of less than Rs 250 crore and a capital investment of less than Rs 50 crore.
The MSME registration process is completely paperless, computerized, and self-declaratory. For registration, only the Adhaar number is required. The proprietor’s Aadhaar number should be used for proprietorship businesses; the controlling partner’s number should be used for partnership organizations, and the Karta number should be used for Hindu Undivided Family (HUF) businesses.
Your investment data, such as your Permanent Account Number (PAN), Goods and Services Tax (GST), and turnover, will be automatically retrieved from government databases. It should be noted that the web portal is fully integrated with the Income Tax and GSTIN systems. As a result, you’ll require a PAN as well as a GSTIN (as per the CGST Act, 2017, and as issued by the Ministry of MSME on March 5, 2021). On the other hand, data from past years in which an entrepreneur did not have a PAN must be self-declared.
Intentionally falsifying self-declared facts and data is punishable under Section 27 of the CGST Act.
- Visit the official udyam registration portal website.
- Go to ‘New registration’ on the home page. You will receive a registration form in the mail.
- After providing the required ‘Aadhaar Number’ and ‘Name of the Entrepreneur,’ click on ‘Validate & Generate OTP.’
- Fill in the appropriate information on the PAN verification page.
- The Udyam Registration box will appear next, and you must complete all of the needed fields.
- After a successful registration, you will receive a “Thank You” message with the Registration Number beginning with “UDYAM.”
The Benefits of MSME Registration include:
When a company registers as an MSME, it becomes eligible for all of the MSME scheme’s benefits. From getting government tenders to collecting Direct Tax exemptions, MSME registration is needed for the smooth operation of a business.
Some of the most notable advantages are as follows:
Free loan protection – Once a business is registered and meets the MSME scheme’s eligibility criteria, entrepreneurs can apply for loans and have them approved at significantly lower interest rates (1 percent to 1.5 percent ). Entrepreneurs do not need to provide any asset proof in order to get their loans approved.
Subsidy for Patents – Obtaining a patent is a pipe dream for most entrepreneurs. Because of the exorbitant expense, most small businesses do not seek for a patent. MSME-registered organizations, on the other hand, can now submit for a patent at half-price thanks to the MSME plan. Once you’ve finished the registration process, you’ll be eligible for a 50% discount on IP.
Benefits of a Reservation – The central policy of the Government Stores Purchase Program has set aside a specific amount of products that can only be manufactured by small firms. Large-scale multinational firms will be unable to compete due to this constraint.
Suggested Read- Print Udyam Registration Certificate
Conclusion:
In this post, we looked at the specifics of MSME registration, the requirements for registration, and the several processes that must be completed. We hope that this article has clarified all aspects of MSME registration procedures.
