In 2020, under the Atma Nirbhar Bharat Package, a new revised MSME definition was announced with the aim of bringing more enterprises under the new scheme. On July 1, 2020, the Ministry of Micro, Small & Medium Enterprise launched a new process for registering MSMEs under the name of Udyam registration. Any company or enterprise registered under this scheme is called an Udyam. Once the registration is completed, the company is allotted a permanent registration number. Udyam registration is the replacement of the previous method of Udyog Aadhaar which was lengthy for the enterprises. Under Udyog Aadhaar, the enterprise had to undergo several categories and documentation processes involving a lot of paperwork. With Udyam registration all the drawbacks of Udyog Aadhaar were eliminated.
Udyam registration is open for any person who wants to establish a company under the micro, small, or medium sector which includes:
Once the Udyam Registration process is completed, the applicant will be issued Udyam Registration Certificate online. The certificate includes a dynamic QR code with details about the company. You can access the information about the company by simply scanning the dynamic QR.
Also Read: A Guide To Apply for MSME Loan Online
Registration under the Udyam Registration scheme is simple and easy to complete. Below are the steps you need to follow to register your enterprise under Udyam Registration:
MSME Udyam Registration is not compulsory for every enterprise. It depends upon the desire of the entrepreneur. However, registration under MSME Udyam provides benefits such as:
Differences |
Udyog Registration |
Udyam Registration |
Registration Method |
Requires both Aadhar card and PAN card details |
Requires only Aadhar card details |
Registration Portal |
Not integrated with any government portal |
Integrated with other MSME portal |
Number of Registration |
An enterprise can register under Udyog Aadhaar multiple times with different corporate names |
In the case of Udyam Registration, only a single person can register using a single Aadhaar card. |
You can apply for Udyam registration, if you have a micro enterprise with minimum investment of Rs.1 crore and turnover of less than Rs.5 crore. Other than micro enterprise, small enterprise with investment less than Rs.10 crore and turnover less than Rs.50 crore and for medium enterprise with investment less than Rs.50 crore and turnover less than Rs.250 crore are eligible for Udyam registration.
Here is how micro, small, and medium enterprises are defined:
Type of Enterprise |
Investment (Does not exceed) |
Turnover (Does not exceed) |
Micro |
Rs.1 Crore |
Rs.5 Crore |
Small |
Rs.10 Crore |
Rs.50 Crore |
Medium |
Rs.50 Crore |
Rs.250 Crore |
Also Read: Do Company Type Affect Your SME Business Loan Eligibility
Several new schemes offer benefits to MSMEs helping them to grow and be financially stable in the long run. With numerous challenges in and around the business, government schemes help in the smooth operation of the business. Also, entrepreneurs constantly feel motivated to improve themselves and provide better services and products to society. Registration under MSME Udyam registration is a positive step towards supporting more businesses in India. Alongside, you can see there are new-age NBFCs such as Poonawalla Fincorp offering MSME Loans to uplift the business operation and tackle different challenges. MSME loans can be used for paying for business emergency expenses, managing day-to-day operations, buying new machinery and plants, paying overhead costs, etc.
Leave a Comment
Comments