MSMEs now have to look for ‘Udyam Registration’ online as a replacement of Udyog Aadhaar registration for new small and medium enterprise businesses in India.
This new Udyam registration for business and small owners will make the process easier getting e-certificate of recognition and unique 12-digit identification number.
Read this blog to know the process, eligibility criteria, benefits along some common questions related to udyam registration in India.
What is Udyam Registration?
Udyam Registration is a kind of recognition certificate provided by the Ministry of MSME to the eligible businesses. Previously, known as Udyog Aadhar, is a 12-digit identification number to help entities to benefit from various acts and compliances.
How to register for MSME (Udyam) Registration?
The process of acquiring a Udyam certificate is totally simple and easy as it is made online with less-paper work.
There are two alternative methods MSMEs can opt for Udyam registration in India. However, TaxWink suggests to go with the second option as it is 2 times faster and simpler.
A. Uydam registration on Udyam Portal
Step 1: Go to the website of the Udyam Registration.
Step 2: Fill out Udyam registration online forms. Kindly check details are entered correctly.
Step 3: Your Udyam online application will be processed by one of the Registration Executives.
Step 4: Obtain the Udyam certificate on your registered email address within 1-2 hours.
B. Udyam Registration through TaxWink
- Verification of documents provided by you
- Filing documents to the authority
- Providing you Certificate of Incorporation
Well, not every business may proceed for Udyam registration. Why?
Because the ministry of MSMEs have made some criteria on obtaining Udyam registration certificate. The certification is only provided to those who wisely fall into the new MSMEs notified Udyam classification of enterprises.
Here’s the classification of enterprises:
| MICRO | SMALL | MEDIUM |
| Investment in P & M less than 1 crore. | Investment in P & M less than 10 crore. | Investment in P & M less than 50 crore. |
| Turnover less than 5 crore. | Turnover less than 50 crore. | Turnover less than 250 crore |
Note* Applicable (Udyam Registration), w.e.f 1st day of July, 2020
Benefits of Obtaining Udyam Registration for MSMEs
- Loans without collaterals
- Subsidy on Patent Registration & Industrial Promotion
- Overdraft facility along with Interest Rate Exemption
- ISO Certification Charges Reimbursement
- Concession on Electricity
- Helps in Getting Government Tenders
- Becomes Easy to Get Licenses, Approvals, and Registrations
- Get exemption under Direct Tax Laws
- Enter into International fairs
Now, also read some major popular frequently asked questions about this new MSME certificate.
Udyam Registration - Frequently Asked Questions
Q1. What is the minimum capital requirement in Udyam Registration?
There is no minimum or maximum limit of investment or capital required to enroll for certification of Udyam Registration.
Q2. Who can be a nominee for an Udyam Registration?
No nomination is required for getting Udyog Aadhar Identification Number for Business.
Q3. What are the Required Documents for Udyam Registration?
The entrepreneur will only need to provide their 12-digit Aadhaar Number, Pan Card and Bank Account details of Business for the registration process.
TaxWink offers relevant Udyam registration consultants in acquiring udyam certificates, answers to questions, guides you in saving taxes, and much more.
