Who is eligible for udyam registration - Who is eligible for udyam registration?
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Who is eligible for udyam registration?

Udyam Registration portal, also known as MSME Registration, is a certificate issued under the Micro, Small, and Medium Enterprise Development Act of 2006 to Micro, Small, and Medium-sized Enterprises in India (MSMED). Previously, Udyam Registration was known as MSME Registration. The MSME department’s major goals in terms of delivering Udyam Registration are as follows:

  • To allow Micro, Small, and Medium Enterprises to compete effectively against worldwide competition.
  • To encourage the expansion of Micro, Small, and Medium Enterprises on a broad scale in order to effectively combat unemployment and poverty.
  • To provide Small Scale Industries (SSI) firms with the benefits of different government schemes in one place.
  • To protect SSI against financial exploitation by large corporations.

Eligibility for Udyam:

Udyam Registration is not available to all companies. On the basis of the following criteria, an enterprise is categorized as a micro, small, or medium enterprise:

  • a microbusiness with a total investment in plant and machinery or equipment of less than one crore rupees and a turnover of less than five crore rupees
  • a small business with a plant and machinery or equipment investment of less than ten crore rupees and revenue of less than fifty crore rupees; and
  • a medium-sized business with an investment in plant and machinery or equipment of not more than fifty crore rupees and a turnover of not more than 250 crore rupees

The method for registering is as follows:

  • On the Udyam Registration portal, the registration form will be available.
  • An Aadhaar number will be required for Udyam registration.
  • In the event of a proprietorship company, the Aadhaar number will be that of the owner; in the case of a partnership corporation, it will be that of the controlling partner; and in the case of a hindu undivided family, it will be a karta.
  • The organization or its authorized signatory must submit its GSTIN and PAN, as well as its Aadhaar number, in the case of a Company, a limited liability partnership, a cooperative Society, a Society, or a Trust.
  • If an entity is properly registered as an Udyam with a PAN, any information gaps from prior years when it did not have a PAN must be filled out on a self-declaration basis.
  • Any number of operations, including production, service, or both, maybe included or added to a single Udyam Registration, but no firm may submit more than one Udyam Registration.
  • Anyone who willfully misrepresents or seeks to conceal self-declared facts and statistics during the Udyam Registration or update procedure will be punished under section 27 of the Act.

Existing Business Entity Registration:

  • On or after July 1, 2020, all existing companies registered under EM–Part-II or UAM must re-register on the Udyam Registration site.
  • All firms registered before to June 30, 2020, will be reclassified in accordance with this notification.
  • Existing businesses that were registered before June 30, 2020, will only be valid until December 31, 2021.
  • Any business that is registered with another ministry agency within the Ministry of Micro, Small, and Medium Enterprises must register with Udyam Registration.

Udyam Registration Benefits:

The government provides free Udyam registration, which is straightforward and quick to get online. A firm can profit from Udyam Registration in the following ways:

  • The applicant will be given financial assistance in order to participate in international trade shows and promote their products.
  • In addition, the applicant will be entitled to government assistance.
  • The registration would make it quick and easy to create current accounts in the company’s name.
  • Businesses would also be able to apply for Government Micro Business Loans and other such helpful programs.
  • Bank loans are easier to get and have lower interest rates.

 

Registration for Udyam requires the following documents:

In the case of a proprietorship, the applicant’s personal Aadhaar is the most important criterion for getting Udyam Registration. Aside from an e-mail address and a phone number, no additional papers are necessary.

  • The applicant’s Aadhaar must be used in the event of a proprietorship.
  • The partners’ Aadhaar can be utilized in the case of a partnership.
  • The Directors Aadhaar might be utilized in the case of a company.
  • The Designated Partners Aadhaar can be utilized in the case of LLPs.

The following is the procedure for submitting an application for Udyam Registration:

To register for Udyam online, follow the procedures below:

  • To get started, go to the Udyam Registration Portal.
  • Complete the verification procedure by entering the applicant’s 12-digit Aadhaar number.
  • Owner’s Name – Provide the authorized signatory or owner’s name as it appears on the Aadhaar Card. The applicant would be unable to finish the form if the name does not match the Aadhaar number.
  • Social Category – Indicate the caste of the applicant: General/Scheduled Caste/Scheduled Tribe/Other Backward Castes. If and when necessary, the competent authorities may request verification of SC, ST, or OBC status.
  • Name of Business – Fill in the name by which the company is known to clients and the general public, as well as whether or not it is a legal entity with the ability to conduct business.
  • In the event of numerous companies, a single applicant can acquire one Udyam Registration using the same Aadhaar Number.
  • Type of Organization – Choose the legal entity for your company.
  • pan- Enter the PAN of the entity for whom Udyam Registration has required whether it is a corporation or LLP.
  • Plant location – Fill in the addresses for all of the company’s locations.
  • Enter the primary address or company office address, as well as your phone number and email address.
  • Commencement Date – Enter the date the company was established.
  • Information about previous registrations –  If appropriate, provide data from a prior MSME registration.
  • Bank Account Information –  Enter the company’s bank account information, including the IFSC Code and Bank Account Number.
  • The main activity –  Choose the main company activity, such as manufacturing or service.
  • NIC (National Identification Code) –  From the National Industrial Classification (NIC) manual, choose the relevant NIC Code.
  • Employed people –  Enter the total number of employees who work for the company.
  • Plant and Machinery/Equipment Investment –  Enter the amount of money spent by the company on machinery and equipment. Do not include the cost of the structure or the cost of the land.
  • DIC (Department of Corrections) – If necessary, provide the information for the District Industry Centre closest to the firm.

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After you’ve completed all of the fields, double-check your work and click the Submit button. Verify the OTP number produced by the registered phone number, as well as the requisite Captcha code. The applicant will get an acknowledgment number, which should be noted for future reference.

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Udyog Aadhar
Business

Registration for Udyog Aadhar: What is Udyog Aadhar?

With over 3.62 crore MSME (Micro, Small and Medium Enterprises) in operation during the 2017-18 financial year, India’s MSME sector is a major contributor to the country’s economy. The MSME industry employs 55 million people and contributes around 8% of GDP. As a result, micro, small, and medium-sized enterprises (MSMEs) play an essential role in India’s business economy. The use of an Udyog Aadhar number is required for MSME Registration / SSI Registration in India. In this article, we will discuss what Udyog Aadhar is, how to register for one, and how it has made it easier for MSME’s (Small Scale Industries) to register and receive government benefits (SSI).

Eligibility for MSME status

According to the MSME Development Act of 2006, the Ministry of MSME establishes the criteria for a Small Scale Industry (SSI) to be classified as an MSME. The fundamental distinction between the three categories of enterprises included in the MSME, namely Micro, Small, and Medium Enterprises, is outlined below.

  • Micro Enterprises: Micro manufacturing firms with a plant and machinery investment of less than Rs. 25 lakh, and microservice enterprises with a plant and machinery investment of less than Rs. 10 lakh, are the smallest entities.
  • Small Enterprises: These are small manufacturing firms that have invested between Rs. 25 lakh and Rs. 5 crore in equipment and machinery. and small service companies with equipment investments of between 10 lakh and 2 crores.
  • Medium Enterprises: Small service businesses invest between 2 crore and 5 crores in equipment, while medium manufacturing businesses invest between 5 crore and 10 crores in plant and machinery.

In order to promote the ease of doing business in India as well as the Make in India programme, the Indian government has enabled several initiatives and is offering multiple incentives to MSMEs registered in India. MSME benefits under GST and GST returns are among the benefits of registering your MSME under the rules of the Udyog Aadhar Memorandum (UAM).

MSME’s Before Udyog Aadhar

The ministry introduced Udyog Aaadhar in an attempt to simplify and declutter the process of registering an MSME in India. The former system for registering businesses under MSME regulations was lengthy and time-consuming, including a considerable quantity of paperwork and bureaucratic red tape. The Entrepreneur Memorandum, or EM-I/II, was the old procedure for registering an MSME before the present UAM system. The MSME certificate was distributed in this system in a very random and heterogeneous manner. Some businesses had to use the national portal for SSI registration, while others had to use the state-specific portals. Additionally, in some areas and states, hardcopy paperwork was the only method to receive your MSME registration.

Introduction to Udyog Aadhar

The primary responsibility for the growth of MSMEs is with the state governments of the individual states. However, as a result of the lengthy procedures, delays, and problems in carrying out the operations, the federal government decided to intervene to assist the state governments. The government did so by providing incentives and making the registration process easier for such organisations. 

The Central Government, in collaboration with the Ministry of MSME, took a bold step in September 2015 by issuing a notification proclaiming that the current system of Entrepreneur Memorandum would be abolished (EM- I). In addition, the government promised ease of registration as well as a broader coverage of MSME to take advantage of the state/federal government’s initiatives for these enterprises.

The major goal of the Udyog Aadhar was to provide the government with a streamlined manner to assist and facilitate the maximum amount of benefits to India’s small-scale companies.

Whether the business or corporation is a sole proprietorship, an LLP, or a Private Limited Company, the owner/director/proprietor will supply their 12-digit Aadhar Number.

Udyog Aadhar Memorandum

The Udyog Aadhar Memorandum (UAM) is a one-page registration form that has a self-declaration format in which the respective MSME self-certifies their existence, bank account details, promoter/owners Aadhar Card Details, and other information like PAN Card Details.

The Udyog Aadhar is free to file; there is no charge for filing the Udyog Aadhar.

After the form is submitted, an Udyog Aadhar Acknowledgement number is generated and delivered to the e-mail address provided in the Memorandum, together with the Udyog Aadhar Number.

The UAM is filed on a self-declaration basis, and it normally does not require any supporting documentation as a rule of thumb.

The central and state governments, on the other hand, are perfectly within their rights to demand confirmation of the facts provided in the Memorandum.

Who is qualified to receive an Udyog Aadhar number?

Every type of business, in theory, is eligible for the Udyog Aadhar and can apply if they so desire. It could be any sort of business structure, including Hindu Undivided Family (HUF), Proprietorship, One Person Company (OPC), or any other.

However, as previously stated, some qualifying conditions must be completed in order to be recognised as an MSME. The qualifications for either of the MSME categories have already been stated. Go here to check if you’re eligible.

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