In this article post, we specifically discuss the various MSME Registration options available, followed by a list of documents required for online MSME Udhyam registration needed to complete the process.
To receive all the benefits associated with the MSME sector, it is crucial that your business be registered on the Udyam platform. The Udyam registration portal process for enterprises has been simplified by the government.
The current situation simply requires a small number of documents, in contrast to older processes that required substantial documentation and drawn-out procedures. We will go through all you need to know about the papers and the several types of Udyam registration certificates in this article.
MSME Udhyam Registration Types
Based on specific business factors like investments and turnover, there are three categories for MSME Udhyam registration.
Microbusinesses: Companies with a 1 crores investment and a 5 crores annual revenue.
Small businesses: those with investments under 10 crores and annual sales under 50 crores
Medium-sized businesses: those with an annual revenue of 250 crores and an investment of 50 crores.
Let’s say a business generates more revenue and invests more money than it did previously. It will then be shifted to the MSME category after that. The entire investment and turnover of all the units registered under the same pan number must be taken into account in order to classify any business as a micro, small, or medium enterprise.
Necessary Online MSME Udhyam Registration Documents
The following items are listed as required in the list of documents for Udyam registration online:
- Pan card,
- Aadhaar card
- Bank Account information
- Company address
- Information on business activity
- Details about the investment (plant, equipment, machinery)
- Details about the turnover
- Duplicate sales and purchase invoices
- Deed of partnership (if any)
- NIC two-digit code
- copies of the bill and licence for the equipment you bought
- Information about the applicant, including their email and mobile numbers.
- A statement of disability (if any)
- Other data, like the number of employees, social class, etc.
If the company has more than one office or production unit, it must be made explicit in the application form filled out by the applicant. Additionally, all of their information must be filled out.
Along with the necessary certificate, the applicant’s socioeconomic category must also be specified. If they want to register as a manufacturer, a service provider, or both, they should make that clear. The applicant is also asked if they want to engage in the government-run and built Gem portal.
Prior preparations for registration
The following are some important considerations for a Udyam registration certificate.
- Online Udyam registration is free of charge.
- An Aadhaar number is required for registration. The owner’s Aadhaar number is necessary in circumstances of ownership organisation. The controlling partner’s aadhar number is necessary in the case of a partnership. While the ‘Karta’s’ Aadhar number is required in the case of a HUF (Hindu complete family),
- If your industry is an established business, you should include your GST and PAN numbers so that the government’s database may immediately pull data on your investments and revenue.
- Only one Udyam registration may be submitted. You only need to complete one registration if you work for many manufacturing or service-related businesses.
- In a select circumstances, the GSTIN, PAN, and Aadhaar numbers of the legal signature will be necessary. These situations include:
- Limited partnership
- A trust
- A cooperative society
- Any individual or business, regardless of earlier EM-II, UAM, or other certificates issued by the MSME ministry, must still register with Udyam.
- According to Section 27 of the MSME Act, any applicant who engages in behaviour like false representation or information suppression will be penalised.
Governmental policies that support MSMEs
You might question why registering with the government is so crucial for any new business in India. We will now discuss the numerous government programmes, the benefits of which you can only receive if you have registered as an Udyam with the authorities.
Women’s entrepreneurship programme: The government created this programme to support female entrepreneurs. The Indian government offers the essential assistance, guidance, and training to the women who want to start their own businesses so they can manage it well.
Complaint tracking system: This website was developed with the intention of assisting Udyam-registered businesses by quickly resolving any concerns they may have. In order to use this platform, you must be registered as an MSME.
Capital subsidy scheme: If you have an Udyam account, you may be eligible for the capital subsidy programme. To buy new machinery and equipment to replace your old and worn-out ones, you can easily apply for loans from government banks. You can raise money quite easily and subsidiarily with the aid of this service.
Standards for quality management: This government initiative was launched to promote healthy competition among businesses who offer the same goods and services. As a result, better products and services are guaranteed. Based on specified quality criteria, the government assigns a ranking to the products they produce.
Udyog Aadhaar memorandum scheme: Any MSME registered with the government can easily give loans, credit, and government subsidies thanks to the Udyog Aadhaar memorandum plan.
Zero defect, zero effect: If you create high-quality (in accordance with the government’s criteria) items or render services that are exported but not brought back to India, you are eligible for discounts and concessions on the exports you make.
As a result, in order to receive a host of udyam registration benefits as an MSME, you must register with the government. You can apply to the website online without visiting any government offices as long as you have all the essential materials at your disposal.