Udyam Registration Certificate is a government-issued document that recognizes and certifies an enterprise as a micro, small, or medium enterprise. The certificate contains information such as the enterprise’s name, address, Udyam Registration Number, and date of issue.
This certificate serves as proof of the enterprise’s MSME registration and is useful in obtaining various benefits, such as subsidies, loans, and other government schemes. The certificate is valid for a lifetime and does not require any renewal or periodic updation.
Benefits of Udyam Registration for MSMEs
- Here are the benefits that registered MSMEs under the Micro, Small & Medium Enterprises Development Act, 2006 can enjoy:
- Collateral-free loans from banks under the credit guarantee fund scheme (CGS) for micro and small enterprises
- Some items are earmarked to be manufactured only by small-scale enterprises
- Easy licenses, registrations, and approvals for microenterprises with MSME certificate
- The speedy process with an MSME certificate while making applications
- Special consideration for participating in international trade fairs, exhibitions, and buyer-seller meets
- Subsidized prices for barcode registration, NSIC performance and credit ratings, industrial promotion subsidy (IPS) subsidy, ISO certification, electricity bill, and patent registration
- The lower interest rate charged by banks for MSME-registered enterprises
- 15% capital subsidy up to ₹15 lakhs for the purchase of plant and machinery through CLCSS scheme
- Benefits while applying for a government tender: free tender sets, exemption from paying earnest money, and waived security deposit up to a certain monetary limit
How to Register for MSME Using Udyam Registration Portal
The process of registering an MSME has become entirely online, self-declaratory, and paperless with the updated Udyam Registration process. Here are the steps you need to follow:
- Submit an online Udyam Registration application through the Udyam Registration Portal.
- Once your application is submitted, you will receive a “Udyam Registration Number” which is your permanent identity number.
- After the registration process is complete, you will be provided with a “Udyam Registration Certificate.”
Please note that Udyam registration requires an Aadhaar number, and depending on the type of firm, the following Aadhaar number is necessary:
- Proprietorship firm: Proprietor
- Partnership firm: Managing Partner
- Hindu Undivided Family: Karta
- Company or a Co-operative Society or a Trust or a Limited Liability Partnership: Authorised signatory
Documents Required for Udyam Registration (SSI/ MSME) Certificate
To apply for an MSME Udyam Registration Certificate, you will need to provide the following documents:
- Aadhaar card
- Bank passbook with a picture
- Election ID card
- Passport
- PAN card
- Driving permit
- Government-issued ID card for employees (if any)
- Certificate of caste (for SC, ST, and OBC categories)
- Owner’s name and Aadhaar number for the business
- Name of the business
- Information about the initial registration procedure for the business
- Documentation confirming the kind of the business
- Documents pertaining to the bank account information and mailing address.
- Code for National Industrial Classification.
Eligibility Criteria for MSME Udyam Registration Online
Entities that fall under the following three categories are eligible to apply for MSME registration:
- Micro Enterprises: Where the investment in plant and machinery is not more than ₹1 crore and the annual turnover is not more than ₹5 crores.
- Small Enterprises: Where the investment in plant and machinery is not more than ₹10 crores and the annual turnover is not more than ₹50 crores.
- Medium Enterprises: Where the investment in plant and machinery is not more than ₹50 crores and the annual turnover is not more than ₹250 crores.
Registration Process
The Udyam registration process is the new online system to register Micro, Small, and Medium Enterprises (MSMEs) in India, replacing the old process known as Udyog Aadhaar. This system is easy to use, paperless, and entirely self-declaratory, and has made it easier for businesses to register and receive benefits from the government. In this article, we will walk you through the Udyam registration process step by step.
Step 1: Visit the Udyam Registration Official Website
The first step is to go to the official website of Udyam Aadhaar: https://udyogaadhaar.gov.in/UA. Once you have reached the website, click on the ‘Online Application for Udyam Registration (For MSMEs)’ option.
Step 2: Provide Personal Information
Enter your personal information, including your name and 12-digit Aadhaar number. Choose ‘Validate & Generate OTP’ and then enter the OTP number sent to your registered mobile number. Remember, an Aadhaar card is mandatory for registering for Udyam.
Step 3: Enter Business Information
Next, complete the information about the company or companies you wish to register. Fill in the name of the company, and if you have more than two businesses, enter the names of the businesses under Enterprise 1 and Enterprise 2.
Step 4: Enter Communication Details
Enter the postal address, registered email address, registered mobile number, and other relevant details about the company or companies in this section.
Step 5: Provide Additional Details
In this section, you must include the date the business was founded as well as any other information previously related to the company’s registration.
Step 6: Provide Registration Proof
This section contains information about registration through the SSI, EM1, or EM2 processes.
Step 7: Provide Bank Information
For this section, you must provide the bank information for the company, including the account number, bank name, IFSC code, and branch name.
Step 8: Classification of the Company
Specify the company’s primary line of business, i.e., whether it engages in manufacturing or delivering services.
Step 9: Provide Details about Services
If your business deals with different types of prospects, you must pick the one where it has a strong presence. For instance, you would choose manufacturing as your core business if the company’s core processes consisted of 70% production and 30% service.
Step 10: Provide Details about the Capital
Provide information regarding the total number of employees in your company as well as the total investment in lakhs. If you own multiple businesses, you will need to complete the necessary data for each business separately.
Step 11: Location of the Firm
Select the industry district center and finally accept the declaration from the list provided on the website. Then, click the submit button after accepting the declaration. You will receive an acknowledgment number following the selection.
Once you have completed these steps, the application will be processed, and you will receive a Udyam registration certificate. You can use this certificate for various purposes, including getting loans from banks, participating in trade fairs, and availing subsidies. In conclusion, the Udyam registration process is an easy and hassle-free way to register your business as an MSME in India. By following these simple steps, you can complete the process.