Step-by-Step Process for MSME (Micro, Small, and Medium Enterprises) and Udyam Registration
Udyam Registration is a simplified process introduced by the Ministry of MSME for the registration of Micro, Small, and Medium Enterprises. It replaced the older system of MSME registration under Udyog Aadhaar.
Step 1: Determine Eligibility
Classify your business as Micro, Small, or Medium based on the following criteria:
| Enterprise | Investment in Plant/Equipment | Annual Turnover |
|---|---|---|
| Micro | Up to ₹1 crore | Up to ₹5 crore |
| Small | Up to ₹10 crore | Up to ₹50 crore |
| Medium | Up to ₹50 crore | Up to ₹250 crore |
Step 2: Gather Required Information
Prepare the following details before starting the registration:
- Aadhaar Number: Mandatory for the proprietor or authorized signatory.
- PAN Number: For proprietors, companies, and LLPs
- Business Name and Address:Exact details as per official records
- Bank Account Details: Account number and IFSC code.
- Investment and Turnover Details: Amount spent on plant and machinery, and annual turnover
- Type of Organization: Proprietorship, Partnership, LLP, or Company
- NIC Code:National Industrial Classification (NIC) code for your business activity.
Step 3: Visit the Udyam Registration Portal
- Open the official Udyam Registration Portal (https://udyamregistration.gov.in).
- Choose the appropriate section:
- For New Entrepreneurs: Who do not have Udyog Aadhaar.
- For Entrepreneurs with EM-II or Udyog Aadhaar: To migrate to Udyam.
Step 4: Complete the Online Form
- Enter Aadhaar Detail
- Enter PAN Details
- Fill in Business Information
- Provide Financial Details
Step 5: Submit Declaration
- Review all entered details carefully.
- Submit the self-declaration agreeing to the terms and conditions.
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Step 6: Obtain Udyam Registration Certificate
- Upon successful submission, a Udyam Registration Certificate will be issued online.
- The certificate contains a unique Udyam Registration Number (URN).
Step 7: Regular Updates
- Update your Udyam registration details annually, especially if there are changes in business classification, investment, or turnover.
Benefits of Udyam Registration
- Ease of Doing Business: Simplified access to government schemes.
- Financial Assistance: Access to loans at lower interest rates and credit facilities.
- Tax Benefits: Various direct and indirect tax exemptions.
- Government Subsidies: Eligibility for subsidies, including electricity bills and capital investment.
- Ease of Tenders: Preference in government tenders and procurement.
- Protection against Delayed Payments: Legal assistance for delayed payments from buyers.