MSME Registration Process: Procedure, Eligibility, and Documents Required by 2024

What is Udyam/MSME registration?

The Indian government offers micro, small, and medium-sized enterprises (MSMEs) operating in the country an electronic certificate known as Udyam Registration. It replaced the previous Udyog Aadhaar Memorandum (UAM) registration method. While Udyam registration is optional, it provides major benefits to MSMEs, making it worthwhile for them to register for it.

Udyam registration provides access to many government services and programmes.

Priority sector financing by banks

Benefits include an extended Minimum Alternate Tax (MAT) credit period, lower bank loan interest rates, and seamless connection with other government systems.

Udyam Registration Number.

Following successful registration, the company, known as “Udyam” on the Udyam Registration portal, will be assigned a unique and permanent identity number known as the “Udyam Registration Number.”

Udyam Registration Certificate

After completing the registration procedure, the firm will be granted an e-certificate known as the “Udyam Registration Certificate.”. This certificate is an official certification of their eligibility for government benefits and support.

Eligibility for MSME Registration Process

Udyam registration is accessible to businesses that fall within particular thresholds, including those in the trading, manufacturing, and service industries. The qualifying requirements for Udyam registration are as follows:

Micro Enterprises: Investments in machinery, plants, or equipment do not exceed Rs. 1 crore, and annual revenue is less than Rs. 5 crore.

Small Enterprises: Investment in machinery, plant, or equipment is less than Rs. 10 crore, and annual revenue is less than Rs. 50 crore.

Medium Enterprises: Investment in machinery, plant, or equipment does not exceed Rs. 50 crore, and annual revenue is not more than Rs. 250 crore.

Who may apply for Udyam registration?

Individuals who want to start a micro, small, or medium firm in India can apply for Udyam Registration. It applies to a variety of entities, including:

Proprietorship.
Hindu undivided family (HUF).
Partnership Firms.
One-Person Companies (OPCs).
Private Limited Companies, Limited Companies, Producer Companies, and Limited Liability Partnerships (LLPs).
Any combination of individuals.
Cooperative Societies.
Any other undertaking.

Advantages of Udyam Registration

Udyam Registration provides a number of compelling benefits to registered Micro, Small, and Medium-sized Enterprises (MSMEs). These benefits are important in promoting their growth and development.

1. Access to Government plans: Udyam registration is required for MSMEs to take advantage of numerous government plans and programmes.

2. Seamless Integration: The Udyam portal works flawlessly with other essential government systems.

3. Priority Sector Credit: With Udyam registration, MSMEs are eligible for priority sector credit from banks.

4. Extended MAT Credit: MSMEs having Udyam registration can carry over Minimum Alternate Tax (MAT) credit for 15 years, rather than the prior 10.

5. Lesser Interest Rates: MSMEs can get bank loans at lesser rates.

When Should I Apply for MSME/Udyam Registration?

While Udyam registration is optional and up to the entrepreneur, most firms should file for MSME registration online as soon as they are established. Entrepreneurs who register early might benefit from a variety of government programmes.

Documents Required

To apply for Udyam registration, an entrepreneur must provide the following documents:

PAN Card Number: This is the Permanent Account Number (PAN) for the firm.

Aadhaar Number: The individual’s Aadhaar card number, depending on the kind of organisation.

GST Number: The company’s Goods and Services Tax (GST) identification number (if applicable).

How Can I Get Udyam Registration Online?

MSMEs may apply for Udyam registration online by following these easy steps on the Udyam registration portal:

1. Go to the Udyam registration portal.

2. Enter the Aadhaar Number and Entrepreneur’s Name, then click the ‘Validate & Generate OTP‘ option.

3. Enter the OTP received to the cellphone number associated with the Aadhaar card, then click the ‘Validate’ option.

4. Go to the PAN verification page. Enter the Type of Organisation and ‘PAN’* numbers, then click the ‘Validate’ button.

5. Fill out all the needed information on the Udyam registration application form.

6. Enter the final OTP you obtained and submit the form. You will receive the Udyam e-registration certificate via email.

Renewal of Udyam Registration

Unlike other registrations, the Udyam Registration Number is permanent and does not need to be renewed. Once secured, MSMEs do not need to renew their Udyam Registration. This tool guarantees a hassle-free experience for registered businesses.

Conclusion

The MSME, or Udyam Registration, procedure is a critical stage for micro, small, and medium-sized businesses in India. MSMEs who receive this registration can gain access to a variety of government perks and assistance. The process is simple and may be performed online, making it available to all qualifying businesses. Registering as an MSME may help a company grow, expand, and compete in the market.