Why Register Your Business on Udyam?

Udyam Registration, formerly known as MSME Registration, is a government initiative to provide a unique identity to Micro, Small, and Medium Enterprises (MSMEs). Registering your business under Udyam helps in availing numerous benefits and support schemes offered by the government to promote the growth and competitiveness of MSMEs in India.

• Access to priority sector lending from banks.
• Eligibility for various government schemes and subsidies.
• Protection against delayed payments from buyers.
• Concessions in electricity bills and patent registration.
• Ease of obtaining government tenders and procurement.

Who Can Apply?

Any enterprise that falls under the definition of Micro, Small, or Medium Enterprise as per the Ministry of MSME's criteria can apply for Udyam Registration. The classification is based on investment in plant & machinery or equipment and annual turnover.

Udyam Registration Process

The Udyam Registration process is entirely online, paperless, and based on self-declaration. It's integrated with the Income Tax and GST systems.

1. Visit the official Udyam Registration portal: udyamregistration.gov.in .
2. Enter your Aadhaar number and name. Validate with OTP.
3. Fill out the Udyam Registration Form, providing details like PAN, GSTIN (if applicable), business activity, bank details, etc.
4. Self-declare the investment and turnover figures.
5. Submit the application. No fees are required.
6. Upon successful submission, an 'Udyam Registration Certificate' will be issued.

Information Generally Required

While the process is self-declaration based, you'll need to have certain information handy:

• Aadhaar Number: Mandatory for the proprietor/managing partner/director.
• PAN Number: Of the enterprise.
• GSTIN: Mandatory for enterprises with GST registration. (Optional for those exempted from GST).
• Bank Account Details: Account number and IFSC code.
• Business Activity Details: Nature of business, NIC Code.
• Investment in Plant & Machinery/Equipment: Self-declared value.
• Annual Turnover: Self-declared value.

Benefits of Udyam Registration

Registering your business as an Udyam offers a plethora of advantages:

• Credit Facilities: Easier access to bank loans at lower interest rates.
• Government Schemes: Eligibility for various central and state government schemes, subsidies, and incentives.
• Protection Against Delayed Payments: Under the MSMED Act, 2006, registered MSMEs can seek redressal for delayed payments.
• Tax Benefits: Exemption from certain direct taxes and concessions.
• Reduced Costs: Concessions in electricity bills, stamp duty, and registration fees.
• International Trade Support: Support for participation in international trade fairs and events.
• Procurement Preference: Preference in government tenders and public procurement policies.

Udyam Registration and Government Procurement

Udyam Registration plays a crucial role in government procurement processes. The government has mandated that a certain percentage of its annual procurement must be from MSMEs.

• Public Procurement Policy: Central Ministries, Departments, and Public Sector Undertakings (PSUs) are required to procure at least 25% of their total annual value of goods or services from MSMEs.
• Reservation for SC/ST and Women Entrepreneurs: Within the 25% target, a sub-target of 4% is earmarked for procurement from MSMEs owned by SC/ST entrepreneurs, and 3% from MSMEs owned by Women entrepreneurs.
• GeM Portal: Udyam registered enterprises can easily register on the Government e-Marketplace (GeM) portal to participate in government tenders and supply goods/services.

This policy provides a significant boost to MSMEs, ensuring a dedicated market for their products and services within the government sector.