Udyam Registration : Guide to Required Documents and Registration Process

  • Seema Dhaka
  • 18-05-2024

Overview

   udyam-registration-guide-required-documents-and-registration-process-1718616457
  • Seema Dhaka
  • 18-05-2024

Introduction

Do you run a small or medium-sized business in India that wants to grow? Say hello to the Udyam registration sign-up! This is a special programme from the government meant to help you with your business. You'll be able to get a lot of benefits from Udyam registration, such as easy access to loans, subsidies, and government help. To give your business the boost it needs, sign up for Udyam registration today.

Let's start the registration process by getting the papers you need. Do not worry; BTHAWK will take care of everything you need. This article lists all the paperwork you need to start your business with Udyam Registration. Whether you're launching a new business or have an existing one not yet registered with Udyam, the process remains straightforward. BTHAWK will help you through every step of the registration process, from filling out the online application to completing it. Here we go: let's use Udyam Registration to help your business grow.

What is Udyam registration?

The Udyam Registration Programme is an effort by the Indian government to make it easier for micro, small, and medium-sized businesses (MSMEs) to do business. It replaced the old MSME registration system and made the process easier for small businesses to register themselves. The system came into effect in 2020.
Udyam will classify your business as a micro, small, or medium company (MSMEs) based on the cost of your tools and plant. The best part? This registration is good for life and provides a lot of benefits for your business.

Eligibility for Udyam Registration

To be eligible for Udyam registration, your business must meet the following criteria:

  • Classification: Your business should fall under the micro, small, or medium category based on investment in plant and machinery or equipment. The investment limits for each category are as follows:
  1. Micro-enterprise: Investments up to INR 1 crore.

  2. Small-enterprise: Investments ranging from INR 1 crore to INR 10 crore.

  3. Medium-enterprise: Investment between INR 10 crores and INR 50 crores.

  • Type of enterprise: Both production and service businesses can sign up for Udyam. The Udyam system allows you to register your business, whether you make goods or offer services.

  • Valid Aadhaar number: You should have a legal Aadhaar number, whether you are an individual, a partner, or the business director. The Indian government gives out Aadhaar, which is a unique identification number.

  • Unique Entity Number (UEN): If your business is already up and running and registered under the old MSME registration system or any other system, you need to get a UEN before you can apply for Udyam registration. The UEN can be obtained from the Udyam registration site.

Documents required for Udyam Registration

Documents required for Udyam Registration

Now that you know what you need to do to be eligible, let's talk about the papers you'll need to register with Udyam. Getting these things together ahead of time is important to make sure that the registration process goes smoothly. You will need the following documents:

  1. Aadhaar card: A scanned copy of the business owner's, partner's, or director's Aadhaar card will be required. This is a must-have document for Udyam registration that demonstrates who you are.

  2. PAN card: A scanned copy of the owner's, partner's, or director's PAN card is required. The Income Tax Department issues the Permanent Account Number (PAN), a 10-digit code number.

  3. Bank account details: You'll need to provide the enterprise's bank account details, including the account number, IFSC code, and branch details. The registration process uses this information for bank verification.

  4. Business address proof: A scanned copy of the address proof of the enterprise is required. This can be in the form of a utility bill (electricity, water, or telephone bill) or a lease agreement, which shows the business's address.

  5. Business registration number (BRN number) certificate: You'll need to send a scanned copy of the registration certificate if your business is already up and running and listed with another agency. This group could include documents such as the MSME registration certificate and the GST registration certificate.

  6. Business information: You'll need to give general information about your business, like its name, address, contact information, type of business, and the date it started. During the registration process, this information helps people find and confirm your business.

  7. Investment details: Depending on the type of business, you'll need to provide information about the money you spent on plants, machinery, or equipment. This encompasses the initial cost, the date of purchase, and any other pertinent information.

Once you have gathered all the required documents, you're ready to proceed with the Udyam registration process.   

A step-by-step guide to the Udyam Registration process

The Udyam registration process is now done entirely online, which makes it easy for small business people all over India to use. To properly register your business under Udyam, follow these steps:

  1. Go to the Udyam Registration page: In your web browser, go to https://udyamregistration.gov.in. Make sure your internet link is strong.

  2. Create a new account: The portal has a "New Udyam Registration" tab. Click on that, and then choose the right choice for your type of business (individual, sole proprietorship, partnership, or company). Use your valid Aadhaar number to make an account, and fill out the registration form with all the required information.

  3. Type in information about your business: Once you create an account, a page will appear where you can enter details about your business. Give correct facts about your business, like its name, address, contact information, and what it does.

  4. Check your Aadhaar number: The next step is to verify your Aadhaar number. Click "Verify" after putting in your Aadhaar number. The phone number associated with your Aadhaar will receive a one-time password (OTP). To make sure your Aadhaar number is real, enter the OTP.

  5. Enter information about the investment: In this step, you'll need to provide information about the investment in your business. Provide details such as the initial cost, the purchase date, and any additional information required.

  6. Share documents: Now is the time to distribute the scanned copies of the requested documents. Make sure you can read and understand the papers. Follow the portal's directions to upload each file to its correct section.

  7. Review and submit: Once you've posted all the necessary files, go back and look over the information you gave. Check again to see if there are any mistakes or problems. Click the "Submit" button to finish the registration process if everything looks good.

  8. Get a registration card for Udyam: When your application goes through, you'll get a confirmation number. With this acknowledgement number, you can check on the progress of your registration. Once it's ready, you can download the Udyam registration certificate from the site.

Your business has successfully completed the Udyam Registration process and received an official licence from Udyam Registration. Congratulations!

Benefits of Udyam Registration for Small Businesses

Udyam Registration offers a range of benefits and incentives for small businesses in India. Let's explore some of the key advantages:

  1. Credit access: Registered businesses can obtain loans and credit from banks and other financial institutions without having to pledge property. Making this happen helps the business meet its cash needs and grow.

  2. Government schemes and subsidies: The Udyam Registration provides access to numerous government programs and grants designed to assist MSMEs. Some of these plans include tax breaks, handouts, incentives to use new technology, and help with learning new skills.

  3. Ease of doing business: With Udyam Registration, starting and running a business is easier. It eliminates the need for multiple registrations and provides a single place for people to comply and receive benefits. This will make it easier for small businesses to do business.

  4. Preference in government tenders: Many government bids reserve a specific portion of the work exclusively for MSMEs. Once you have Udyam registration, your business can fight for government contracts and participate in these tenders. This will bring in a lot of extra money for you.

  5. Credibility and trust: Udyam registration enhances your business's credibility and trustworthiness. It provides official recognition and establishes your business as a legitimate entity in the market. This can attract more customers and business partners, leading to increased opportunities and growth.

step-by-step guide to the Udyam Registration process

Udyam Registration vs. MSME Registration

There are some important changes between Udyam registration and the old way of registering MSME. Both Udyam Registration and the old method were recognized by small businesses, but Udyam Registration has a few advantages over the old method:

  1. Registration unification: Unified registration: Udyam Registration is a replacement for a number of different forms, including Udyog Aadhaar, MSME registration, and EM-II/EM-III registration, among others. It provides individuals with a centralized location to register, making the procedure simpler and more expedient.

  2. Lifetime validity: Udyam Registration is permanent, so there is no need to periodically renew it. This ensures that your company will continue to receive benefits and rewards after registration, without the need for periodic registration renewals.

  3. Online process: Udyam Registration operates exclusively online, providing small business proprietors with the convenience of registering their enterprises from their residences or workplaces. This feature enhances accessibility and convenience, particularly for enterprises situated in geographically isolated regions.

  4. Revised investment limits: With the implementation of Udyam Registration, investment limits for micro, small, and medium-sized enterprises have been revised. These increased limits allow a greater number of organizations to take advantage of the benefits of Udyam registration.

Udyam Registration vs. MSME Registration

Conclusion:

Registering your business under the Udyam scheme is essential for small and medium-sized enterprises seeking to thrive and take advantage of the array of government incentives on offer. BTHAWK ensures the proper preparation of all your important documents, minimizing the likelihood of errors or delays in your registration process. Trust BTHAWK to make the process smoother and hassle-free for you! 🚀

Kindly be informed that the information shared above is strictly intended for educational purposes only. It is highly recommended to seek the guidance of a skilled professional for any financial transactions or compliance services to guarantee legal adherence and mitigate any potential challenges.

Frequently Asked Questions

Udyam Registration is a government initiative for registering micro, small, and medium enterprises (MSMEs) in India. It is crucial as it provides businesses with various benefits like easy access to credit, subsidies, and government schemes. Registering under Udyam also helps in obtaining various statutory and regulatory benefits.

Businesses involved in manufacturing or service activities with investment and annual turnover criteria defined for micro, small, and medium enterprises are eligible for Udyam Registration. The eligibility criteria vary based on the sector of operation.

The documents required for Udyam Registration include Aadhar card, PAN card, business address proof, and details of the enterprise's investment and turnover. Additional documents such as partnership deed, registration certificate, and others may be needed based on the type of business entity.

To apply for Udyam Registration online, visit the official Udyam Registration portal, fill out the registration form with relevant details, upload the necessary documents, and complete the payment, if applicable. Verification and approval are usually done within a few working days.

Udyam Registration is free of cost, and no fee is charged for the registration process. Beware of any third-party service providers claiming to charge a fee for Udyam Registration, as the process can be completed independently without any charges.

The benefits of Udyam Registration for MSMEs include easier access to credit, priority sector lending benefits, government subsidies, protection against delayed payments, eligibility for various government schemes, and exemptions under certain regulations.

Udyam Registration is not mandatory for all MSMEs but is highly recommended to avail of the benefits offered under various government schemes and to establish the credibility of the business. It also helps in participating in trade fairs and exhibitions on a subsidy basis.

Yes, an enterprise can update its details like investment, turnover, and other information after obtaining Udyam Registration by revisiting the Udyam Registration portal and making the necessary changes in the registered profile.

The validity of Udyam Registration is indefinite, provided the business continues to meet the qualifying criteria for its respective category (micro, small, or medium). However, businesses are encouraged to update their information in case of any changes.

To check the status of your Udyam Registration application, log in to the Udyam Registration portal using your credentials, navigate to the application status section, and track the progress of your registration. Notifications are also sent via email or SMS.