Udyam Registration
Udyam Registration or MSME Registration is the new process for registering MSME (micro, small and medium enterprises) launched by the Ministry of Micro, Small & Medium Enterprises on July 1, 2020. The Ministry had also revised the definition of MSMEs from the same date. An enterprise for this process is known as Udyam, and its Registration Process is known as Udyam Registration. A permanent registration number along with a recognition certificate will be issued after Registration.
The Udyog Aadhaar registration has been transformed to the Udyam registration since July 2020. Udyam registration has made the process more accessible than it was earlier, at the time of Udyog Aadhaar registration. Udyam registration is essential for availing the various benefits of schemes or programs of the Ministry of MSME, such as the Credit Guarantee Scheme, public procurement policy, additional edge in Government Tenders and protection against delayed payments, etc.
Udyam Registration Certificate
After completion of the process of Udyam Registration, a certificate will be issued online. This Udyam Registration Certificate will have a dynamic QR Code from which the details about the enterprise can be accessed.
Renewal of Udyam Registration
Udyam Registration Number is a permanent identification number, and there will be no need for renewal of Registration.
Udyam Registration Benefits
The Udyam Registration is a simple process and there is no need to handle the paperwork for obtaining Udyam Registration. Having Udyam Registration for your venture entitles your Business to the following benefits:
Who can apply for Udyam registration?
Any person who aspires to establish a micro, small, or medium enterprise can avail of Udyam Registration.
Proprietorships, Hindu Undivided Family (HUF), Partnership Firm, One Person Company, Private Limited Company, Limited Company, Producer Company, Limited Liability Partnership, any association of persons, co-operative societies, or any other undertaking can obtain MSME Udyam Registration in India.
Revised MSME definition – The Atamnirbhar Bharat package
After 14 years since the MSME Development Act, a revision in the MSME definition was announced in the Atmnirbhar Bharat package on 13.05.2020 to bring more units under the purview of the schemes announced. According to this package, the composite criteria for the definition of MSME are investment and turnover; the limit has been revised upwards. The distinction between the service and the manufacturing sector has also been eliminated.
For better understanding, go through the table attached here:
| 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 |
When to apply for MSME Udyam Registration registration?
Obtaining Udyam Registration is not mandatory and is at the sole discretion of the Entrepreneur. However, it is recommended that most businesses obtain MSME registration right after Registration to enjoy various benefits offered by the Government.
Documents Required for Udyam Registration Online
The Online Udyam Registration application process is based on self-declaration, and there is no further requirement to upload any documents.
The applicant will only need to furnish their 12-digit Aadhaar Number, PAN, and Bank Account details of Business for the registration process.
Udyam registration of New Enterprise – Udyam Registration Portal
The new enterprise is required to follow the below steps to register on Udyam Registration Portal:
| Type of firm | The person whose Aadhaar number is required |
|---|---|
| Proprietorship firm | Proprietor |
| Partnership firm | Managing partner |
| Hindu Undivided Family | Karta |
| Company or a Co-operative Society or a Trust or a Limited Liability Partnership | Authorized signatory |
Note: Importantly, an enterprise can file only one Udyam Registration. Additionally, multiple numbers of enterprise activities, i.e., manufacturing, services, or both, can be added to one Udyam Registration.
Mera Online CA can help you get UDYAM registration and LEDGERS Accounting Software for providing estimates, invoices, tracking purchases, filing GST returns, and generating GST eWay bills.
1. Who is eligible for Udyog Aadhar?
23 March 2023
Anyone wishing to establish a micro, small, or medium enterprise can apply for Udyam Registration.
Note: As per the Revised Guidelines for MSME, retail and wholesale trades will be allowed to register on Udyam Registration Portal.
2. What are Udyog Aadhar Fees?
23 March 2023
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 Mera Online CA can help you make it easier. With our assistance, you can quickly get your Udyog Aadhar/Udyam Registration done with minimal effort and hassle.
3. What is Udyog Aadhar Benefits?
23 March 2023
4. What is NIC code for Udyam Registration?
08 December 2021
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.
5. How many NIC codes can one add to NIC registration?
08 December 2021
One can add a maximum of 10 NIC codes for Udyam registration.
6. What is the Udyam Registration?
19 September 2022
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.
7. Who is eligible for Udyam registration?
19 September 2022
Anyone intending to establish micro, small, or medium enterprise may apply online. for Udyam registration.
8. Who is eligible to apply for MSME registration?
19 September 2022
MSME registration can be obtained by the following entities that fulfill the revised MSME classification criteria of annual turnover and investment:
These entities involved in the following activities are eligible for Udyam registration:
9. What are the definitions of MSME effective from 01/7/2020?
19 September 2022
10. Are traders eligible for Udyam registration?
19 September 2022
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.
11. Can we have two Udyam registrations?
19 September 2022
When the enterprises are different, i.e., established under other names and registered or incorporated separately, the enterprise proprietor can apply for MSME registration. However, an enterprise cannot file for more than one Udyam Registration. All the activities, including manufacturing or service, should be specified or added to one Udyam Registration. An entrepreneur can add additional actions to the Udyam Registration by clicking on the ‘Update Details’ option on the homepage.
12. Is the Aadhar card compulsory for Udyam Registration?
19 September 2022
Yes. For obtaining Udyam registration, an Aadhaar card is compulsory. In case an applicant is other than the proprietor, the Aadhaar card of the partner and the director will be required.
13. Can I obtain more than one Registration on the same PAN?
19 September 2022
No, one cannot take more than one Udyam Registration on the same PAN.
14. What is the NIC code for Udyam Registration?
19 September 2022
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.
15. What are the uses of Udyam Registration?
19 September 2022
16. How long does it take to obtain Udyam Registration?
19 September 2022
The processing is dependent on the submission of the documents by the client.
17. Are there any chances of rejection of Udyam?
19 September 2022
The application will be approved based on the information provided by the applicant. The documents and details should be up to date to avoid any chances of rejection.
18. Is Registration of MSME /Udyog Aadhar replaced with Udyam Registration?
19 September 2022
Yes, MSME / Udyog Aadhaar registration is replaced with Udyam Registration. As per the notification of MSME dated 26.06. 2020, Udyam Registration is the new process of Registration launched by the Ministry of Micro, Small, and Medium Enterprises, effective from July 1, 2020.
19. Is the MSME Udyam registration compulsory?
19 September 2022
No. The enterprises that come under the MSME category need not mandatorily apply for MSME registration. However, it is better to obtain MSME/Udyam registration as the government provides a lot of benefits in terms of loan facilities, easy access to credit, low-interest rates, eligibility to many schemes, etc., to the enterprises that have Udyam registration.
20. Do I need multiple registrations for manufacturing plants in different cities?
19 September 2022
No. The MSME/Udyam Registration Certificate is for a single entity irrespective of multiple branches or plants. However, information about various departments or plants must be furnished.
21. Whose Aadhaar number is required to be entered when filling the MSME registration?
19 September 2022
In the case of a company, its authorized signatory should provide the PAN and Aadhaar number while filling in the MSME registration.
22. Is Aadhar mandatory for Udyam Registration?
06 February 2023
Yes, Aadhar is mandatory for obtaining the Udyam registration.
23. What documents are required for Udyam Registration?
06 February 2023
The user will have to provide their 12 digit Aadhar number, PAN Card, and the bank account details of the business for the registration process.
24. What is the validity of Udyam registration?
06 February 2023
The registration is valid till the existence of enterprises and there is no need to renew the registration.