Udyam Registration Certificate - Meaning, Benefits & Guide to Apply

On July 1, 2020, the Ministry of Micro, Small & Medium Enterprise introduced a new registration process called Udyam registration. Any business or enterprise registered under this scheme is referred to as Udyam. Upon completion of registration, the company receives a permanent registration number. To learn more about what Udyam registration is, go through this blog.

What is Udyam Registration in India?

The Udyam Registration Portal, launched by the Ministry of MSMEs, aims to digitise and streamline processes for the growth and support of small and medium businesses in India. It provides an improved, tech-first system that ensures government approval and issues a Udyam Recognition Certificate along with a Unique Number.

This certification is crucial for the legal and operational validation of small and medium businesses. The Ministry of MSME, Government of India, administers Udyam registration specifically for micro and small businesses.

What is the Udyam Registration Certificate?

Once the Udyam Registration process is completed, the applicant will be issued a 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.

Who Can Apply for Udyam Registration?

Udyam registration is open for any person who wants to establish a company under the micro, small, or medium sector, which includes:

• Hindu Undivided Family (HUF)
• Proprietorships
• Partnership Firm
• One-Person Company
• Private Limited company
• Limited Company
• Limited Liability Partnership
• Any Association of Persons
• Co-operative societies

How Does Udyam Registration Support the Atma Nirbhar Bharat Initiative?

Udyam Registration actively contributes to the Atma Nirbhar Bharat Initiative by being part of the government's strategic programs aimed at supporting MSMEs. Through initiatives like Quality Management Standards, Quality Technology Tools, support for women entrepreneurs, and the pursuit of ‘zero effect and zero defect’, the central government creates a favourable environment for MSME growth. These efforts empower small and medium enterprises, enabling them to prosper and play a significant role in the Indian economy.

Step-By-Step Guide to Download Udyam Registration Certificate

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:

• Step 1: Visit the official website of Udyam Registration. Please note that there is no other website available for registration. Beware of fake websites.
• Step 2: Select ‘For new entrepreneurs who are not registered yet as MSME or those with EM-II’ present on the homepage.
• Step 3: Provide your ‘Aadhaar Number’ and the ‘Name of Entrepreneur’. Next, click the ‘Validate & Generate OTP’ button.
• Step 4: After receiving the OTP, press the ‘Validate’ button.
• Step 5: Upon Aadhar validation, proceed with PAN verification. Select the ‘Type of Organisation’, and ‘PAN’ number, and click the ‘Validate’ button. Additionally, provide details like whether you have filed the previous year’s ITR and if you have a GSTIN.
• Step 6: Next, open the Udyam Registration application form and fill it with the required details.
• Step 7: Select the ‘Submit’ button and provide the final OTP you will receive.

After submission of your OTP, you will receive your Udyam e-registration certificate in your e-mail ID, which you can download.

What is the Udyam Registration Processing Time and Fees?

The Udyam Registration Certificate will be sent to the applicant's registered email ID within two to four business days. Registering on the Udyam Registration Portal for MSME is entirely free of cost.

Udyam Registration Certificate Renewal

The Udyam Registration Certificate, obtained after MSME Registration, remains valid for a lifetime. Hence, there is no need to renew the Udyam Registration Certificate.

How Can I Print the Udyam Registration Certificate?

Follow the steps mentioned below to print the Udyam registration certificate:

• Step 1: Go to the Udyam registration portal.
• Step 2: Click on the 'Print/Verify' option and choose 'Print Udyam Certificate.'
• Step 3: Provide your 'Udyam Registration Number,' 'Mobile' details, select the OTP option, and click 'Validate & Generate OTP.'
• Step 4: Enter the OTP received on the mobile/email and click 'Validate OTP and Login.'

Once logged in, print the Udyam registration certificate.

Benefits of 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:

• Collateral-free loan
• Concession in Electricity bill
• Special preference in procuring government tenders, such as a 1% exemption in the interest rate on bank overdrafts
• Quick dispute resolution
• Tax rebates
• Protection against buyer payment delays
• A special discount of 50% on government trademark and patent fees

Also Read - How To Apply for MSME Loan Online? - A Detailed Guide

Udyog Registration Vs Udyam Registration

The following table showcases the difference between Udyog registration and Udyam registration.

What is the Eligibility Criteria for Udyam Registration?

The following highlights the eligibility criteria for Udyam registration based on enterprise size:

• Microenterprise: Minimum investment of Rs. 1 Crore and turnover less than Rs. 5 Crore.
• Small enterprise: Investment less than Rs. 10 Crore and turnover less than Rs. 50 Crore.
• Medium enterprise: Investment less than Rs. 50 Crore and turnover less than Rs. 250 Crore.

Here is how micro, small, and medium enterprises are defined:

Documentation Requirements for Udyam Registration Certificate

Here are the documents required for the Udyam Registration Certificate:

• Business Commencement Date
• Proof of the number of employees (with male and female divisions)
• Nature of business
• PAN of the enterprise
• GST Certificate
• Copy of the entrepreneur's Aadhaar card
• Social Category of Entrepreneurs
• Phone number
• E-mail address
• A/C No. and IFSC Code (or a copy of the passbook)
• The latest audited financial statements

Also Read - Does Company Type Affect Your SME Business Loan Eligibility?

To Conclude

Now that you know what Udyam registration is, its benefits, and all, make sure to reap its benefits. Simultaneously, NBFCs like Poonawalla Fincorp extend an MSME Loan to enhance business functions and address various challenges. These loans serve versatile purposes, such as covering emergency expenses, sustaining day-to-day operations, acquiring new machinery, meeting overhead costs, and more.

Frequently Asked Questions

1. What are some common errors I should avoid during the Udyam Registration Certificate application process?

Here are some errors you should avoid during the Udyam Registration Certificate application process:

• Avoid providing inaccurate details in the MSME Registration Application.
• Ensure accuracy in the Aadhaar and PAN numbers of the proprietor, partner, or authorised signatory.
• Choose the correct NIC code.
• Review the MSME eligibility criteria and applicability.
• Select the appropriate type of enterprise.

2. Is there any cost I need to pay for Udyam Registration?

No, you do not need to pay any fees for Udyam Registration.

3. How long is the Udyam Registration Certificate valid?

The Udyam Registration Certificate remains valid for a lifetime.

4. Is Udyam registration compulsory?

Yes, businesses must undergo Udyam registration if they are registered with another ministry agency under the Department of MSME.