Udyam Registration is a new online replacement of Udyog Aadhaar registration for small and medium enterprise businesses in India. This new Udyam registration for business and enterprise owners makes the process more simplify and will get an e-certificate of recognition and a unique number. For getting micro, small-medium business enterprises registered under the Ministry of MSME.
Major benefits of Udyam registration
- Loans without collaterals:
The Government of India initiated various scheme and reforms to upgrading small-scaled business enterprise through this Udyam certificate, that allows to avail credit without collateral. This is the best Udyam benefits for small scale business owners, as it offers a collateral-free loan that is accepted by the Government of India, Small Industries Development Bank of India, and the Ministry of Micro, Small, and Medium Enterprise under the name The Credit Guarantee Trust Fund Scheme.
- Subsidy on Patent Registration & Industrial Promotion:
Small and medium scale business enterprises registered under the Ministry of Micro, Small and Medium Enterprises Development Act, 2006, gets a heavy subsidy for patent registration and Industrial promotion.
- Overdraft facility along with Interest Rate Exemption:
Enterprises registered as Udyam under the Ministry of MSME are eligible to get a benefit on the overdraft as part of the Credit Guarantee Trust Fund Scheme. Note: this can vary from bank to bank.
- ISO Certification Charges Reimbursement:
An Udyam registered small-medium enterprise can claim the expenses for reimbursement that were spent on ISO certification.
- Concession on Electricity:
Small businesses registered under the new MSME Udyam registration Portal, they can get some concession on electricity bills.
- Helps in Getting Government Tenders:
Micro, small and medium owners can take part in Government tender auction. They can easily avail exemption while applying for government tenders.
- Becomes Easy to Get Licenses, Approvals, and Registrations:
With this new Udyam registration certificate business owners are eligible to apply for other official certificates, approvals, and registration in India.
- Get exemption under Direct Tax Laws:
The Government helps registered Udyam company, in the reduction or removal of a liability. It may provide complete relief from taxes, reduced rates, or tax on only a portion of items.
- Take Part in International fairs:
The Indian government encourages and approves Udyam registered startups, entrepreneurs company, and existing small-medium businesses to take part in international fairs, to display and promote their products and services.
For Existing Enterprises
- All existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after the 1st day of July, 2020.
- All enterprises registered till 30th June, 2020, shall be reclassified in accordance with this notification.
- The existing enterprises registered prior to 30th June,2020, shall continue to be valid only for a period up to the 31st day of March, 2021.
- An enterprise registered with any other Organisation under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.
New registration process
- The form for registration shall be as provided in the Udyam Registration portal.
- There will be no fee for filing Udyam Registration.
- Aadhaar number shall be required for Udyam Registration.
- The Aadhaar number shall be of the proprietor in the case of a proprietorship firm, of the managing partner in the case of a partnership firm and of a karta in the case of a Hindu Undivided Family (HUF).
- In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the Organisation or its authorised signatory shall provide its GSTIN and PAN along with its Aadhaar number.
- In case an enterprise is duly registered as an Udyam with PAN, any deficiency of information for previous years when it did not have PAN shall be filled up on self-declaration basis.
- No enterprise shall file more than one Udyam Registration: Provided that any number of activities including manufacturing or service or both may be specified or added in one Udyam Registration.
- Whoever intentionally misrepresents or attempts to suppress the self-declared facts and figures appearing in the Udyam Registration or updation process shall be liable to such penalty as specified under section 27 of the Act.
1 – For new registration:
2- To migrate to Udyam