Udyam Registration is a type of government registration which is provided along with a recognition certificate and a unique number for certifying MSMEs and hence it is also called MSME Registration. The main aim of Udyam Registration is to simplify the time consuming and complex process of registering any business under Medium and Small Enterprise (MSME). Any kind of entity like an LLP or a Private limited company can go for Udyam Registration.
Udyam Registration can be filed online in the Udyam Registration Portal - Udyam. After the registration has been done, a permanent identity number and e-certificate will be assigned, known as ‘Udyam Registration Number’ and ‘Udyam Registration Certificate’ respectively. The Ministry of MSME provides numerous benefits for the growth of MSMEs and businesses with Udyam Registrations can also use these to their advantage. Some of the benefits are reduced rate of interest from banks, eligibility for IPS subsidy, concession in electricity bills, exemptions under Direct Tax Laws, easier registration and approval to licenses, protection against delay in payment etc.
Benefits of Udyam Registration
Benefits of Udyam registration certificate are listed below
Interest rate Subsidy on Bank loans
Collateral free loans from banks
Protection against delayed payments, against material / services supplied
Special beneficial reservation policies in the manufacturing/ production sector
Ease of obtaining registrations, licenses and approvals.
Msme Registered entity gets eligible for CLCSS (credit linked capital subsidy scheme)
International trade fair special consideration
Government security deposit (EMD) waiver (Useful while participating tenders)
Calculation of Investment in Plant and Machinery or Equipment
The investment calculation in plant and machinery and all types of equipment will be linked to the ITR - Income Tax Return of the previous years, filed under the Income Tax Act, 1961.
In case of a new enterprise, where no prior ITR is available, the investment will be based on self-declaration of the promoter of the enterprise and such relaxation shall end after the 31st March of the financial year in which it files its first ITR.
The expression ―plant and machinery and all types of equipment of the enterprise, shall have the same meaning as assigned to the plant and machinery in the Income Tax Rules, 1962 framed under the Income Tax Act, 1961 and shall include all tangible assets (other than land and building, furniture and fittings).
The purchase invoice value of a plant and machinery or equipment, whether purchased first hand or second hand, shall be taken into account excluding GST - Goods and Services Tax, on a self-disclosure basis, if the enterprise is a new one without any ITR.
The cost of certain items specified in Explanation I to sub-section (1) of section 7 of the Act shall be excluded from the calculation of the amount of investment in plant and machinery.
Calculation of Turnover
Exports of goods or services or both shall be excluded while calculating the turnover of any enterprise whether micro, small or medium, for the purposes of classification.
Information related to turnover and exports turnover for an enterprise shall be linked to the Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN.
The turnover-related figures of such enterprises which do not have PAN will be considered on a self-declaration basis for a period up to 31st March 2021 and thereafter, PAN and GSTIN shall be mandatory.
Udyam Registration Process
The process for Udyam Registration is simple and easy to follow.
THIS WEBSITE IS A PROPERTY OF A CONSULTANCY FIRM, PROVIDING CONSULTANCY SERVICES.
WE EXPRESSIVELY DECLARE THAT WE ARE PRIVATE CONSULTANTS. WE HAVE NO RELATION OR WE DO NOT REPRESENT ANY GOVERNMENT OFFICIAL OR ANY GOVERNMENT DEPARTMENT