Udyam Registration: Every MSME Should Know This
Table of contents
What is Udyam Registration?
Udyam Registration, formerly Udyog Aadhar, is a process of registration that provides coaching formally embraced in Micro, Small, and Medium Enterprises (MSME) by awarding WMs id Number umpwa recognized respective certificate to businesses. It is worth noting that registration is very important for businesses who want to be eligible for different state sponsored benefits and schemes. With the Udyam Registration system, there is no need for an entrepreneur to walk in-person or visit any relevant ministry as the entire procedure is online and self-declared.
Why is Udyam Registration Important?
- Access to Government Schemes and Benefits: Registered MSMEs are able to access a plethora of schemes and facilities such as subsidies, tax holidays and loan facilities at subsidized interest rates.
- Ease of Doing Business: Udyam Registration minimizes bureaucratic hurdles faced by small businesses in the process of obtaining licenses, approvals, registrations and starting up finally.
- Market Opportunities: Improved market access for the registered MSMEs as well as entry into government tenders that are mostly earmarked for the MSME category.
- Financial Support: Registered MSMEs provide an attractive lending base to banks and financial institutions which translate to more financial and growth prospects.
Transition from Udyog Aadhar to Udyam Registration
Udyog Aadhar registration was the base before udyam registration. Initially, an online self-registeration of MSMEs was launched in 2015, however neglected due to the revamped HIM set in by the Ministry of MSMEs in Uday reds last July. Being the stand-alone system connected to e-district portals this new system allows to interfaces with multitude of government databases providing easy and speedy registration.
Key Features of Udyam Registration
- Self Declaration: The registration is self-basis with no supportive documents required hence no over documentation.
- Integration with Government Databases: The system can be interfaced with PAN database and GSTIN database for the automatic verification of investment and turnover.
- Permanent Registration Number: The company is allocated a permanent registration number after completion of the registration and a registration certificate containing a dynamic QR code is granted.
- No Renewal Required: There is no need for other application forms and fellow-ups or reminders every year for Udyam Registration as opposed to other forms of registration.
Udyam Registration Process
- Sequence is of visit at the official website of Udyam Registration which is Udyam registration portal.
- Login with Aadhaar: Registration procedure starts with the submission of Aadhaar number of the owner of business
- Provide Business Information: Provide additional business information including the name of the business, its type and contact address.
- PAN and GSTIN Verification: System generated details verification of the PAN and GSTIN will be done by the system itself.
- Submit the Form: The application should be submitted after completing all the required sections. MSP will be issued with a permanent registration number and certificate after successful submission.
Features of Udyam Registration
- Subsidies and Incentives: Since registration has been done for these small enterprises, the government provides a lot of subsidies and incentives which includes that of technology and proper project achievers.
- Aid in timely payment of bills: Provisions in the MSME Development Act protect buyers from making after the agreed timelines which allows for good working conditions in terms of paying for services and making purchases.
- Credit Guarantee Scheme: Scheme offering Credit Guarantee Fund for Micro and Small Enterprises (CGTMSE) provides collateral free loans to registered MSME.
- Assistance in Marketing Development: SO – they give help to promote themselves at international markets. Registered MSME can participate in various international trade fairs and exhibitions.
Udyog Aadhar Registration: Importance and Instruction
For the businesses that have retired their registration under Udyog Aadhar, they need to shift to Udyam Registration. It is simple and just necessitates re-registration at Udyam portals. Post registration, such enterprises will be able to download Udyog Aadhar certificate from their portals. This certificate is a proof of registration and helps in getting a number of services.
Top Problems and Solutions
- A Technical Glitch: Although the Udyam portal has been designed and configured with a user-friendly interface so that the user experience will be pleasant. Sometimes, there are some technical issues to avoid. In this situation, talking to the support team or presenting oneself at the nearest MSME Development Institute will be helpful.
- Deviations on Hell: Confirm that the detail provided during registration is consistent with data in PAN and GSTIN matrices.
- Double Government Registration: One enterprise must have only one Udyam registration. Double applications for registration may cause problems. Make sure that all the businesses are registered in one registration certificate.
General Questions and Answers (FAQs) About UDYOG Registration
Q1: Who is eligible to obtain Udyam Registration?
A: All partitions of the enterprises micro, small, and medium as per revised criteria of classification are able to submit application of Udyam Registration.
Q2: Should all MSMEs pursue an Udyam Registration regardless of their status?
A: Yes. All MSMEs are mandated to be registered under the Udyam Registration process if they intend to access the advantages given by the government.
Q3: Can already registered Udyog Aadhar apply for registration under Udyam?
A: Yes, all the existing holders of Udyog Aadhar need to register again under the Udyam Registration portal.
Q4: Is there any charge for Udyam Registration?
A: No. The registration procedure is at no cost.
Q5: How can I obtain Udyam Registration certificate?
A: Upon registration being successfully completed, certification may be downloaded from the Udyam Registration web portal using the URN.
Q6: What are the documents required to get the Udyam Registration?
A: No documents need to be uploaded. The process of registration is said to be done through self-declaration only.
Q7: Am I allowed to make changes on Udyam Registration?
A: Yes. Udyam Registration details portal allows the users to make changes whenever necessary.
Q8: I want to know about the time period for which Udyam Registration certificate remains valid?
A: The Udyam Registration Certificate does not expire in lifetime which means that it is issued for life and there is no need to renew it.
Q9: In what ways does Udyam Registration assist in the availing of the loans?
A: MSME that is registered is entitled to unsecured debts and other financial assistance as per the various schemes of the government.
Conclusion
Increased reliance on Udyam registration aims to cut corner on the recalcitrance of the small enterprises in India. The intent of the government is to encourage the growth of small business by offering an uncomplicated, fast and electronic seed process of registration. Whether you are a fresh start-up or an existing owner of a business, you will be on numerous opportunities and benefits of your business once you seek for Udyam Registration. Take this initiative and take your business to the next level thanks to the Udyam Registration system.
