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Have you registered your MSME with Udyam?

Udyam Registration:

The government has set up a framework to make it easier for MSMEs to register. For the purposes of this procedure, an entity shall be referred to as Udyam, and the registration process will be referred to as ‘UDYAM REGISTRATION.’ Following registration, you will be granted a permanent registration number.

A udyam certificate will be provided online once the registration procedure has been completed. This certificate will include a dynamic QR code that can be used to access Portal’s web page as well as information about the company. 

Anyone planning to start a micro, small, or medium business can apply for Udayam Registration online using the Udyam Registration site, which is based on self-declaration and does not need the submission of any documents, papers, certifications, or evidence.

Basic Features:

  • The MSME registration procedure is completely computerized, requiring no paper, and is based on self-declaration.
  • For registering an MSME, no paperwork or evidence are necessary; simply an Aadhaar number would suffice.
  • PAN and GST-related data on business investment and turnover will be accessed automatically from government databases.
  • The online system will be completely linked with the systems used by the IRS and the GSTN.
  • PAN and GSTIN will be required from April 1, 2021.
  • Former EM-II or UAM registrations, as well as any other Ministry of MSME registration, must be re-registered via the Udyam Registration system.
  • Each firm may only have one Udyam Registration. A single Registration, on the other hand, can specify or add any number of activities, including production, service, or both.

Udyam Registration Benefits:

There are several advantages to registering with Udyam and receiving an Udyam certificate for your company.

  • Subsidy on bank loans’ interest rates.
  • Banks provide no-collateral loans.
  • Late payments, as well as material and service delivery, are all protected.
  • In the manufacturing/production sector, there are special advantageous reservation policies.
  • Obtaining registrations, licenses, and permissions is simple.
  • CLCSS is available to MSME-registered entities (credit linked capital subsidy scheme)
  • Special consideration for international trade fairs
  • Waiver of the government’s security deposit (EMD) (Useful while participating tenders)
  • Concessions on electricity bills
  • Waiver of stamp duty and registration costs
  • Reimbursement of ISO certification expenses
  • An exemption is governed by direct tax legislation.
  • Subsidy for NSIC performance and credit rating costs
  • Subsidy for patent registration
  • Subsidy for barcode registration
  • Eligibility for the Industrial Promotion Subsidy (IPS)

Udyam registration checklist:

1. One important director/Aadhaar partner’s number (valid mobile number shall be linked to Aadhaar, OTP will be received to this mobile number)

2. If you haven’t previously done so, enter your EM–Part-II / MSME / Udyog Aadhaar Registration number.

3. Contact information (phone number, e-mail address)

4. Social Category (of a person in point no. 1 above), such as SC/ST/BC/OBC (valid certificate is required)

5. The gender

6. Firm/Company Registration Number

7. Personal Identification Number (PAN)

8. Plant (s) / Office (s) Location(s) in the Service Sector

9. Official Communication Address

The day on which the business will begin is number ten.

11. IFSC (International Financial Services Code) and Bank Account Number

12. Information on the company’s operations

13. Total number of employees

14. Investment in plant and machinery/equipment, as reported in the most recent ITR and GSTR

Investment in plant, machinery, or equipment is calculated as follows:

  • For established businesses, the investment in plant and machinery or equipment must be calculated using the most recent ITR.
  • For new businesses, the calculation of investment in plant and machinery or equipment must be based on the self-declaration, but if they submit an ITR, they must revise the values to reflect the most recent ITR.
  • For new businesses, the purchased value/invoice value of plant and machinery or equipment (whether new or used) excluding GST will be included in the computation.
  • “Plant and machinery or equipment” and “income tax regulations” are interchangeable words.
  • Land and buildings, as well as furnishings and fittings, are not included in the calculation.

Turnover calculation:

  • Exports of products and services, or both, are not included in the calculation.
  • PAN or GSTIN must be connected to turnover and export turnover.

Information is being updated:

1. Businesses using the Udyam Registration portal must keep their data up to date based on ITR and GST returns from the preceding fiscal year.

2. The government would also collect and update data from government sources such as ITRs, GSTRs, banks, and other financial institutions.

3. If the status is not updated, it will be suspended.

4. The enterprise categorization will be changed from time to time based on the data being updated.

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