How to get Udyam Registration Certificate?

Starting in July 2020, the Treasury introduced a new MSME Registration system and categories for Small and Medium Enterprises, Known as Udyam Registration; it allows new and existing companies to register on the MSME portal. This article emphasizes how to get an Udyam registration certificate.

Brief Overview

The Ministry of Micro, Small, and Medium Enterprises, or MSME, is the primary government agency in charge of developing and enforcing regulations, guidelines, and legislation governing small-scale enterprises in India. On October 2, 2006, the MSME went into force. Its goal is to promote, facilitate, and increase the competitiveness of MSMEs operating across India.

Micro, Small, and Medium Enterprises (MSME) are regarded as the backbone of the Indian economy. The MSME sector covers a large number of small size industries, making it one of India’s major GDP producers. MSME is a government-backed project that aims to accelerate the growth of small-scale businesses in both the organized and unorganized sectors. 

Importance of Udyam Registration Certificate

The Udyam Registration Certificate has a few important benefits for your business and company. These benefits are: –

• Under the credit guarantee fund system for micro and small businesses, you can obtain collateral-free loans from banks (CGS)
• Some goods have been designated for production solely by small-scale businesses.
• Once you have obtained the MSME certificate for your microenterprise, obtaining permits, registrations, and approvals becomes considerably easier. The ability to exhibit your MSME certificate when submitting these applications will expedite the process.
• Participating in international trade fairs, exhibits, and buyer-seller meetings earns you preferential treatment. You may also host international seminars and conferences that are beneficial to the MSME industry.
• Many things are cheaper if you have an MSME registration: barcode registration, NSIC performance and credit ratings, industrial promotion subsidy (IPS) subsidy, ISO certification, power bill, and patent registration.
• Banks charge a lower loan rate for MSME registered enterprises than the standard interest rate.
• To encourage technical advancement in micro companies, the CLCSS programme was implemented, which gives a 15% capital subsidy up to 15 lakhs for the acquisition of plant and machinery.
• The Ministry of Micro, Small, and Medium Enterprises provides the following incentives to a microenterprise when applying for a government tender:

1. Tender sets can be distributed for free.
2. They are not required to pay earnest money.
3. The security deposit is waived up to a specific amount.

The Act also includes numerous more advantages, which are established through annual budgets.

Eligibility for Udyam Registration Certificate

To qualify as a small, medium, or medium-sized business, corporate investment and annual return must be below the minimum limit for each company. Listed below are registered industries operating in both the service sector and other businesses. These are:

• Micro Enterprises – Businesses with auctions from 1Cr to Rs5Cr
• Small Businesses – Businesses Selling from Rs10Cr to Rs50Cr Maximum
• Medium Businesses – For Businesses Selling from Rs50Cr to Rs250Cr Maximum

Documents required for Udyam Registration Certificate

Following are the documents required for Udyam Registration Certificate:

Udyam Registration Certificate Application Process

The process of applying for an Udyam Registration Certificate is simple and does not require much effort:

• All you have to do is go to udyamregistration.gov.in and register as a new user there. Make sure you have your Aadhar Cards and Eternal account, as the website starts by asking for an account verification number.
• After entering the Aadhar Card and PAN Card details, you will be asked to enter the OTP you will receive via phone number and confirm each card number.
• Next, you need to choose which type of business organization or company your company, and the business PAN number associated with your business account.
• Once verified, the website will ask you to fill out a form with personal information and business details. Double check everything as one mistake can lead to form retrieval.
• When you complete the form, the website will verify your phone number or email address with the final OTP and submit the form to the agent for confirmation. The verification process may take some time, so please be patient during the process.

• Once the form is reviewed and approved by the authorities, it will be officially notified, and the MSME Udyam certificate will be issued and can be downloaded from the website.

Points to Ponder

There are some following that one should keep in mind:

• Those having UAM registration or any other registration granted by any authority under the MSME must re-register on the Udyam Registration Portal by selecting the option “For New Entrepreneurs who are not yet registered as MSME or those with EM-II.”
• Enterprises that have UAM registration must migrate to Udyam Registration.
• If the entrepreneurs fail to comply with the aforementioned criterion, their UAM registration will be reported as invalid, and they will not be eligible for any MSME plan advantages.

Conclusion

 State governments and union territories have also put up their own set of MSMEs-friendly facilities and incentives. The State Government provides MSMEs with incentives such as the creation of specialised industrial estates, tax breaks, electricity tariff breaks, capital investment breaks, and other assistance. Both the Centre and the State, whether by statute or otherwise, focus their incentives and support packages to registered entities.

The words MSME have been integrated into exemption notices under the Banking Law, Excise Law, and Direct Taxes Law. As a result, the registration certificate issued by the registering body is regarded as proof of MSME status and is necessary to avail of MSMEs’ benefits. As you can see, there are countless benefits to obtaining an Udyam registration certificate, but you need to know the eligibility requirements and documentation required to obtain an Udyam registration certificate.