From eligibility criteria to the registration process, this guide covers everything you need to know about Udyam Registration.
Small and medium-sized enterprises (SMEs) play a crucial role in the growth and development of any economy. In India, they make a significant contribution to the country’s GDP and job creation. In recent years, the Indian government has taken various measures to encourage the development of SMEs, such as the introduction of the Udyam registration process.
The Udyam Registration is a new procedure introduced by the Indian Ministry of Micro, Small and Medium-sized Enterprises (MSME) to replace the old enrollment procedure known as the Udyog Aadhaar Memorandum (UAM). The enrollment process at Udyam is online, paperless, and with minimum charges. It aims to simplify the registration process and provide benefits to SMEs in the form of loans, grants, and other government programs.
In this guide, we cover everything you need to know about registering with Udyam, including eligibility criteria, benefits, and the registration process.
Udyam Registration Eligibility Criteria:
To be eligible for registration with Udyam, a business entity must meet the following criteria:
The entity must be established as an estate, partnership, limited liability company, limited liability company, limited liability company, or another corporate form to be registered.
- The entity must have a valid Aadhaar card number.
- The turnover of the company must be less than Rs. 25 crores.
- Unit investment in machinery and equipment or equipment should be less than 10 million rupees..
Benefits of Udyam Registration:
The Udyam registration process offers SMEs the following benefits:
Easy access to credit:
SMEs registered with Udyam can benefit from a variety of credit facilities, including loans with lower interest rates and unsecured loans.
Registered SMEs are eligible for various government programs such as grants, tax credits, and other incentives.
Protection against late payment:
The government introduced a provision to ensure that registered SMEs receive payment for their products or services within 45 days of delivery.
Eligibility for public procurement:
Registered SMEs can participate in public procurement and compete on an equal footing with large companies.
The government provides marketing support to registered SMEs through various programs such as the National Small Industries Corporation (NSIC).
Udyam Registration Process:
The Udyam registration process is easy and can be completed online by following these steps:
- Visit Udyam Registration Portal: The first step is to visit Udyam’s official enrollment portal (https://udyamregisteration.org/).
- Enter Aadhaar number: Enter the Aadhaar number of the company authorized to sign.
- Verify Aadhaar Details: Portal verifies Aadhaar details and generates OTP for authentication.
- Enter company details: Enter company details such as company name, PAN number, and organization type.
- Provide additional information: Provide additional information such as the number of employees, investment in machinery and equipment, and turnover.
- Once all the required information has been provided, submit the application.
- Obtain a certificate of enrollment for Udyam: The Udyam enrollment certificate will be prepared and delivered to the registered email address following the application’s successful submission.
Udyam registration is a quick and minimum-cost procedure that offers SMEs in India a number of advantages. It intends to make access to finance, subsidies, and other government programs easier while also streamlining the registration procedure. We covered the requirements for eligibility, rewards, and the Udyam enrollment process in this guide. We advise SME owners in India who want to benefit from government assistance and perks to registering their company using the Udyam enrollment system.
Learn more about Udyam Registration For Partnership Firm
In addition to the advantages already outlined, Udyam registration aids SMEs in building trust and enhancing their presence in the marketplace. It might give SMEs a competitive edge and assist in their business expansion.
It is crucial to remember that Udyam enrollment only needs to be done once, and the enrollment certificate is good forever. SMEs must, however, update their information if there are any business changes, such as a restructuring of the company or an investment in new equipment.
Udyam registration, in short, is a game-changer for SMEs in India. SME access to finance, subsidies and other government programs has been facilitated by the ease with which the registration procedure has been made simpler. SMEs should take advantage of this opportunity and register their business under Udyam to take their business to new heights.