Process of Udyam Registration & Benefits for MSMEs
The Udyam Registration is a great way for new ventures and enterprises to get registered officially and get access to government benefits and other rebates without any cost. Wanted to know more? This blog covers everything about Udyam Registration to get you started.
The Government of India is relentlessly working to promote entrepreneurship, and Udyam is an active part of this ambition to boost entrepreneurial initiatives. It not only offers new ventures and enterprises to get officially registered through a single-window system but it also provides a hassle-free way of registering the business.
If you are planning to have a new venture or already running one, the Udyam Registration can be the easiest way to launch your MSME while getting the opportunity to avail yourself of subsidies, tax benefits, official recognition as a business, and a lot more.
What is Udyam Registration for MSME?
The udyam registrations for the MSMEs were launched on October 1st, 2016, by the honourable minister for finance, Sh. Nirmala Sitharaman. It is a process in which you can register your business as an enterprise and make use of various government policy benefits like loans, reduction in stamp duty, and access to govt grants.
When it comes to starting a business, Udyam registrations act as one of the most important steps that your business must have. The main purpose of the Udyam initiative is to promote MSMEs as an engine of growth contributing to the good of the nation as well as for them. Apart from that, it also aims to provide a single-window registration for all business activities related to micro, small and medium enterprises (MSMEs).
It is usually seen that the entrepreneurial ecosystem in India is booming, and there is a need for a policy where business registration should come in handy for individuals. Inspired by this ideology, udyam registrations are not as complicated as other government procedures, and this can be easily done online without paying any additional cost to anyone to get your business registered.
Steps of Registration:
- Visit the official website, udyamregistration.gov.in.
- Click on the new registration tab, and you will receive the registration form.
- Enter the identification details like the Aadhar number and name of the entrepreneur and click on the generate OTP tab.
- Enter the asked details on the Pan verification page.
- Now, the Udyam registration box will appear, and you have to fill in all the details asked.
- After completing the Udyam Registration, you will receive a thank you message along with the Udyam Registration number (URN) starting with udyam.
- Udyam registration certificate is also issued on completion of the registration process.
Classification of Business Under the Udyam
Want to know which category your business lies in? The government lays out a clear structure defining the definition of micro, small and medium enterprises, which are as follows:
|Classification||Investment in plant and machinery or equipment’s*||Total Turnover|
|Microenterprise||Less than 1 crore||Less than INR 5 core|
|Small Enterprise||Less than 10 crore||Upto Rs. 50 Crore|
|Medium enterprise||Less than 50 Crore||Upto Rs. 250 Crore|
*The calculation of investment in plant and machinery or equipment will be linked to the Income Tax Return (ITR) of the previous year filed under the Income Tax Act, 1961.
Benefits Of Udyam Registration
There are a lot of benefits that you can use for your startup or new enterprise under the udyam registrations for MSMEs. Here are some of the great benefits that you can avail yourself as a business:
- Tax exemption on the profit earned during the first five years of udyam Registration.
- Businesses can get priority in the allocation of government schemes like the Prime Minister’s employment generation scheme etc.
- Business gets more opportunities to work with the government and form business partnerships.
- It provides greater access to credit so that it becomes easy for business owners to get loans easily.
- Businesses can receive more investment opportunities from banks and private investors by getting listed in the database of government.
- Access to Credit Linked Capital Subsidy.
- Get access to collateral-free loans and a 1% overdraft facility.
FAQs on Udyam Registration & Benefits
While you now know the process, you might have certain doubts related to Udyam Registration. Here are some of the FAQs to give you better clarity on it:
- Does it cost to go for Udyam Registration?
The Udyam Registration is completely free, and you don’t need to pay anything to anyone to register your business.
- How much time it may take to get the Udyam Registration Certificate?
It usually takes around 2-4 business days to get the certification delivered to your registered e-mail address after you submit the details.
- What are the documents required for Udyam Registration?
The Aadhar Number, Pan Card, and Bank details are required to proceed with the Udyam Registration.
- Is there any validity of Udyam Registration?
The Udyam Registration is valid for the entire existence of the business.
After reading this article, I hope you have got a clear picture of how Udyam registrations can help you build your startup or business effectively while giving you official recognition and benefit to make your way in the market. This is something that has the potential to make your business recognized and trusted in the market.