What is Udyam Registration, Udyam documents, Udyam benefits, Udyam online registration process

What is Udyam Registration?

Udyam Registration is a type of government registration that 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. 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

The benefits of Udyam registration certificate are listed below:
  1. Interest rate Subsidy on Bank loans
  2. Collateral free loans from banks
  3. Protection against delayed payments, against material/services supplied
  4. Special beneficial reservation policies in the manufacturing/ production sector
  5. Ease of obtaining registrations, licenses and approvals.
  6. Msme Registered entity gets eligible for CLCSS (credit linked capital subsidy scheme)
  7. International trade fair special consideration
  8. Government security deposit (EMD) waiver (Useful while participating tenders)
  9. Electricity bills concession
  10. Stamp duty and registration fees waiver
  11. ISO certification fees reimbursement
  12. Direct tax laws rules exemption
  13. NSIC performance and credit rating fees subsidy
  14. Patent registration subsidy
  15. Barcode registration subsidy
  16. Industrial Promotion Subsidy (IPS) Subsidy Eligibility

Calculation of Investment in Plant and Machinery or Equipment

  1. 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.

  2. In case of a new enterprise, where no prior ITR is available, the investment will be based on the 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.

  3. 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).

  4. 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.

  5. 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

  1. 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.

  2. 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.

  3. 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.

Step 1: Visit the Udyam Registration Website.

Step 2: Fill in all the details on the Udyam Registration Form. Make sure you enter all the details correctly.

Step 3: Make the online payment for your Udyam Application.

Step 4: One of the registration executives will process your Udyam application.

Step 5: In 1-2 hours you will receive your Udyam certificate at your registered email address.

Udyam Registration Documents Required for the Process

  1. An Aadhaar number is required if in the case of a proprietorship firm.

  2. GSTIN, PAN, and Aadhaar number are required if in the case of a Limited Liability Partnership or a Cooperative Society or a Society or a Trust

Udyam Registration Process for Existing Enterprises

  1. There are some norms for the registration of existing enterprises too. All of them are mentioned below.
  2. All existing enterprises, companies, and businesses registered under EM–Part-II or UAM are required to register again on the Udyam Registration portal - on or after 1st July 2020
  3. All enterprises, companies, and businesses registered till 30th June 2020, shall be re-classified by this notification.
  4. The existing enterprises, companies, and businesses registered before 30th June 2020, shall continue to be valid only for a period up to 31st March 2021.
We hope we were able to answer all your questions regarding Udyam Registration. Visit our site to register for it in a hassle-free manner.

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LAST UPDATED ON : 20/05/2024