Detailed Instructions on How to Register Your Business Under the Udyam Scheme

Micro, Small, and Medium Enterprises (MSMEs) form the backbone of India's economy, providing significant employment opportunities and contributing to the country's GDP. To support and streamline the registration process for these enterprises, the Government of India introduced the Udyam Registration. This new system replaces the earlier MSME registration process and aims to make it easier for businesses to register and access various benefits. In this blog, we will provide detailed instructions on how to register your business under the Udyam scheme.

What is Udyam Registration?

Udyam Registration is a simplified and fully digital process for registering MSMEs in India. It is designed to provide businesses with an official certificate and a unique identification number, known as the Udyam Registration Number (URN). This registration is essential for availing various benefits offered by the government, such as subsidies, tax exemptions, and easier access to loans.

Eligibility Criteria for Udyam Registration

Before you begin the registration process, it's important to determine whether your business qualifies as an MSME. The classification is based on investment in plant and machinery or equipment and annual turnover:

1. Micro Enterprises:

• Investment: Up to ₹1 crore

• Turnover: Up to ₹5 crore

2. Small Enterprises:

• Investment: Up to ₹10 crore

• Turnover: Up to ₹50 crore

3. Medium Enterprises:

• Investment: Up to ₹50 crore

• Turnover: Up to ₹250 crore

Step-by-Step Guide to Udyam Registration

Step 1: Visit the Udyam Registration Portal

The first step is to visit the  Udyam Registration portal. This portal is user-friendly and provides all the necessary information and forms for the registration process.

Step 2: Aadhaar Verification

Aadhaar verification is a crucial part of the registration process. Depending on the type of ownership, the Aadhaar number of the proprietor, partner, or director must be provided. Here’s how to proceed:

• For Proprietorship: The Aadhaar number of the proprietor.

• For Partnership Firm: The Aadhaar number of the managing partner.

• For Hindu Undivided Family (HUF): The Aadhaar number of the Karta.

• For Company, LLP, Cooperative Society, or Trust: The Aadhaar number of the authorized signatory.

Ensure that the mobile number linked to the Aadhaar is active, as you will receive an OTP (One-Time Password) for verification.

Step 3: PAN Verification

After Aadhaar verification, you will need to verify your PAN (Permanent Account Number). This step is mandatory for all enterprises, as the Udyam portal is integrated with the Income Tax Department's database for seamless verification.

Step 4: Fill in the Basic Details

Once Aadhaar and PAN are verified, you need to fill in the basic details about your business, including:

• Name of the entrepreneur

• Name of the enterprise

• Type of organization (Proprietorship, Partnership, LLP, Private Limited Company, etc.)

• PAN number and GSTIN (if applicable)

• Business address (including district and state)

• Email address and mobile number

Step 5: Classification of the Enterprise

Next, you will classify your enterprise based on the investment and turnover criteria. This classification will determine whether your business falls under micro, small, or medium enterprise.

Step 6: Enter Bank Details

Provide the bank details of the enterprise, including the bank account number and the IFSC code of the branch. This information is crucial for availing financial benefits and subsidies.

Step 7: Additional Details

Enter additional details such as:

• Major activity (manufacturing or service)

• National Industrial Classification (NIC) code

• Number of employees

• Social category (General, SC, ST, OBC)

The NIC code is a statistical standard used to classify business activities. You can find the appropriate NIC code for your business from the list provided on the Udyam portal.

Step 8: Self-Declaration

Complete the self-declaration section, confirming that all the information provided is true and correct. This section is important as it serves as a legal affirmation of the details you have entered.

Step 9: Submit the Application

After filling in all the required details and completing the self-declaration, submit the application. Upon successful submission, you will receive an acknowledgment with a unique Udyam Registration Number (URN).

Step 10: Receive Udyam Registration Certificate

Once the application is verified, you will receive an Udyam Registration Certificate. This certificate is an official document that serves as proof of your registration and includes the URN. It can be downloaded from the Udyam Registration portal.

Benefits of Udyam Registration

Registering under the Udyam scheme offers several benefits to MSMEs, including:

1. Access to Government Schemes: Registered MSMEs can avail various government schemes such as the Credit Guarantee Fund Scheme, Interest Subsidy Schemes, and more.

2. Easier Access to Finance: Banks and financial institutions provide loans at lower interest rates and with fewer collateral requirements to registered MSMEs.

3. Tax Benefits: Registered MSMEs can enjoy various tax exemptions and rebates provided by the government.

4. Protection Against Delayed Payments: The MSMED Act provides protection against delayed payments, ensuring timely payments from buyers.

5. Preference in Government Tenders: Registered MSMEs get preferential treatment in government procurement and tenders.

6. Subsidies and Incentives: Various subsidies and incentives are available for technology upgrades, quality certification, and marketing.

7. Export Promotion: Registered MSMEs can benefit from export incentives and subsidies, as well as assistance in international marketing.

8. Capacity Building and Skill Development: The government offers various programs for capacity building and skill development to enhance the productivity and efficiency of MSMEs.

Conclusion

Print Udyam Registration is a critical step for MSMEs in India to gain official recognition and access a wide range of benefits and support systems offered by the government. The registration process is straightforward and entirely online, making it accessible to all eligible businesses. By obtaining Udyam Registration, small businesses can enhance their credibility, financial stability, and overall growth potential, contributing significantly to the country's economic development.

For entrepreneurs and small business owners, understanding and leveraging the Udyam Registration process can be a game-changer, providing the necessary boost to thrive in a competitive market. Whether you are starting a new business or running an existing one, registering under the Udyam scheme is a step towards sustainable growth and success.