Udyam Registration Certificate - Meaning, Benefits & Guide to Apply

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. 

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

Udyam registration certificate

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

Step-By-Step Guide for 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:

1. Visit the official website of Udyam Registration. Please note that there is no other website available for registration. Beware of fake websites.
2. Please visit the Udyam Registration Portal for online registration.
3. There is no documentation required for registration as the application is self-declaration based and free of cost. You don’t have to upload any documents, papers, or certificates.
4. The only compulsory document required is your Aadhaar Number during the Udyam Registration process.
5. All the other details regarding the enterprise’s investment and turnover are drawn from government databases as it is linked to PAN and GST.
6. The enterprise will be assigned an ‘Udyam Registration Number’ once the application is successfully submitted.
7. Lastly, the enterprise will issue an ‘Udyam Registration Certification” after the completion of the registration process.

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

Udyog Registration Vs Udyam Registration 

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.

 

Eligibility criteria for Udyam registration

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

Bottom Line

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.