Apply for Udyam Registration Online

On July 1, 2020, a new process for MSME classification and registration known as ‘Udyam Registration' was introduced. On June 26, the Union Ministry of Micro, Small and Medium Enterprises (MSME) issued a notification announcing the decision.

The MSME Ministry has established a new Udyam Registration platform. The gateway will assist entrepreneurs in learning what they need to know and doing what they need to do.

How do I use the Udyam Registration Portal to register an MSME?

The new MSME registration process is entirely electronic, paperless, and self-declaratory. For registering an MSME, no paperwork or proofs are required to be uploaded.

What will be needed to register for Udyam?

For the registration process, the user will need to enter their 12-digit biometric Aadhaar number.

Important Points to Remember

• After completing the complete process, you will be granted a registration number and an Udyam Registration Certificate.

• The Udyam Registration Certificate will include a dynamic QR code that can be used to access the Portal's web page as well as information about the company. The registration will not be required to be renewed.

• The PAN and GST connected details on an enterprise's investment and turnover will be automatically retrieved from the relevant government databases.

• The online system for the MSME Ministry would be fully connected with the Income Tax and GST IN systems.

• MSMEs with an EM-II or UAM registration, or any other registration issued by a Ministry of MSME authority, will be required to re-register on the platform.

• There will be no more than one Udyam Registration per business. Under one Registration, any number of activities, including production, service, or both, may be listed or added.

• People will benefit from the government's facilitated procedure, which includes single window systems at Champions Control Rooms and DICs.

• The registration process will be fully free of charge, and there will be no fees to pay.

Benefits of Udyam Registration

The new MSME registration process, according to the MSME Ministry, will be exceptionally straightforward, smooth, and entrepreneur-friendly. It will also serve as a model for ease of doing business not only in India but around the world. It will also minimise transaction time and costs, allowing entrepreneurs and businesses to focus on their core competencies and become more globally competitive.

MSME Udyam Registration

The Indian government has introduced a number of initiatives aimed at assisting, strengthening, and promoting the growth of micro, small, and medium businesses (MSME). The concept of ‘Udyam Registration' was introduced by the Ministry of Micro, Small and Medium Enterprises in a notification dated June 26, 2021. The Udyam Registration is available to businesses in both the manufacturing and service sectors.

It is a simplified procedural framework for MSME registration. Prior to the establishment of Udyam Registration, the registration procedure was lengthy and bureaucratic, requiring a great deal of documentation. However, with the introduction of Udyam Registration, businesses may quickly and easily register themselves online. It's worth noting that the Udyam registration online site is the only government portal for MSME (Udyam) registration.

Who is eligible to participate?

Anyone interested in starting a micro, small, or medium business can register online with Udyam Registration.

Online Udyam Registration Procedure

• On the basis of self-declaration, any entity may file Udyam Registration through the internet site. Documentary proofs are not required to be uploaded.

• The registration form can be found on the Udyam Registration portal.

• There is no charge for submitting the form.

• In the online Portal, the entity is referred to as "Udyam" and is given a permanent identifying number called "Udyam Registration Number."

• The Aadhaar number is required.

• In the event of a proprietorship firm, the Aadhaar number will be that of the proprietor, the controlling partner in the case of a partnership firm, and the ‘Karta' of a Hindu Undivided Family in the case of a Hindu Undivided Family.

• If the organisation or authorised signatory is a company, a limited liability partnership, a cooperative society, a society, or a trust, it must submit its GSTIN and PAN, as well as its Aadhaar number.

• If a company is properly registered as an Udyam with a PAN, any information gaps for past years during which it did not have a PAN must be filled out via self-declaration.

• An enterprise can only file for Udyam Registration once, but it can include any number of activities, including production, service, or both, in that single registration.

• A penalty will be imposed on anyone who knowingly misrepresents or suppresses any information or figures during the Udyam Registration or Update process.

• An e-certificate, titled "Udyam Registration Certificate," is issued in the entity's favour after the online registration process is completed.

Also Read : Benefits of Udyam Registration

Existing Business Registration Procedures

• From July 1st, 2021, all current businesses must re-register on the Udyam Registration platform.

• Enterprises that were already registered before June 30, 2021, will only be valid until December 31, 2021.

• Any business that is registered with another MSME organisation must also register with Udyam Registration.

In Udyam Classification, there is a procedure for updating information and a transition period:

• An organisation with an Udyam Registration Number must update its information online on the Udyam Registration portal based on self-declaration, including the data of the preceding financial year's ITR and GST return, as well as any other relevant information.

• If the relevant information on the portal is not updated within the prescribed time frame, the enterprise's status will be suspended.

• The enterprise's categorization will be updated based on information provided or acquired from government sources, such as ITRs or GST returns.

• In the event of an enterprise's graduation (from a lower to a higher category) or reverse-graduation, a communication regarding the change in status will be issued to the enterprise (slipping to lower category).

• In the event of an enterprise's upgradation and subsequent reclassification, the enterprise's current status will be maintained for one year after the end of the registration year.

• In the event of a reverse-graduation, an enterprise will remain in its current category until the end of the financial year, and it will only be provided the benefit of the changed status with effect from April 1st of the following financial year.

Conclusion

In the current era of economic hardships plaguing many industries, various new initiatives helping MSMEs will undoubtedly be a blessing to the sector. Establishment of a Udyam Registration platform helps MSMEs to save time and money in the registration process. In addition, a number of schemes that improve the sector's international recognition as well as subsidies work to prevent the region's financial ruin. The MSME sector will feel more secure in terms of economic strength, the recently opened e-portals will act as an additional savior to deal with various challenges.

Suggested Read : Udyam Registration Process