Udyam Registration is a government registration process for Micro, Small and Medium Enterprises (MSMEs) in India.
Who can apply for Udyam registration?
Any business entity that falls under the revised MSME definition can apply for Udyam registration. As per the revised definition, the classification of MSMEs is based on their turnover and investment in plant and machinery or equipment.
Revised MSME definition
The Atamnirbhar Bharat package The Atmanirbhar Bharat package, announced by the government in May 2020, revised the MSME definition to make it more inclusive and to provide benefits to a larger number of businesses. The revised definition is as follows:
Micro enterprises – with a turnover up to Rs. 5 crore and investment up to Rs. 1 crore Small enterprises – with a turnover up to Rs. 50 crore and investment up to Rs. 10 crore Medium enterprises – with a turnover up to Rs. 250 crore and investment up to Rs. 50 crore
When to apply for MSME Udyam Registration registration?
Businesses that meet the MSME definition and are interested in availing the benefits of various government schemes and initiatives should apply for Udyam registration. The registration process is online and can be done at any time.
Documents Required for Udyam Registration
• Aadhaar card of the proprietor or the managing partner or the authorized signatory
• PAN card of the business entity
• Bank account details
• Business address proof
• Details of the business activity
• Investment in plant and machinery or equipment
• The turnover of the business for the previous financial year
Udyam registration of New Enterprise
Udyam Registration Portal New enterprises can register for Udyam registration through the Udyam Registration portal. The registration process is online, and the application can be submitted by providing the required documents and information.
Udyam Registration Benefits
Udyam registration provides various benefits to MSMEs, including easier access to credit, subsidies, and various government schemes. It also helps in enhancing the credibility of the business and increases its visibility in the market.
Difference between udyaog aadhar to udyam registration
Udyog Aadhaar and Udyam registration are two separate processes that aim to provide benefits and support to micro, small, and medium enterprises (MSMEs) in India. Here are some of the main differences between Udyog Aadhaar and Udyam registration:
Name and Logo: Udyog Aadhaar was the earlier name of MSME registration in India, while Udyam registration is the new name given to MSME registration under the Atmanirbhar Bharat Abhiyaan. Also, Udyam registration comes with a new logo that represents the dynamic and vibrant nature of MSMEs in India.
Eligibility: In Udyog Aadhaar, only the micro, small, and medium enterprises with a turnover of up to Rs. 5 crore were eligible for registration. However, in Udyam registration, the eligibility criteria have been revised, and the maximum turnover limit has been increased to Rs. 250 crore for MSMEs.
Registration Process: The registration process for Udyam is different from Udyog Aadhaar. Udyam registration is an online process, and it requires aadhaar card details, PAN card details, and other business-related information. The registration process for Udyog Aadhaar was also online, but it did not require as many details as Udyam registration.
Validity: The validity of Udyog Aadhaar was for a lifetime, and there was no need to renew the registration. However, in Udyam registration, the registration is valid for a period of 10 years, and it needs to be renewed after the expiry of the validity period.
Benefits: The benefits provided under Udyog Aadhaar and Udyam registration are similar, such as access to credit, subsidies, and government schemes. However, under Udyam registration, the government has introduced new benefits, such as the provision of collateral-free loans and a one-time settlement of outstanding dues.
Frequently asked questions
Any business entity that falls under the MSME definition and has a valid Aadhaar number can apply for Udyog Aadhar or Udyam registration.
There are no fees for Udyog Aadhar or Udyam registration. The registration process is free of cost.
Udyog Aadhar or Udyam registration provides various benefits to MSMEs, including easier access to credit, subsidies, and various government schemes. It also helps in enhancing the credibility of the business and increases its visibility in the market.
NIC code stands for National Industrial Classification code, and it is a unique code assigned to a business based on its nature of activity. For Udyam registration, one needs to select one or more NIC codes that represent the business activities.
One can add up to 5 NIC codes to NIC registration.
Udyam registration is the process of registering an MSME under the revised MSME definition to avail various benefits and schemes provided by the government.
Any business entity that falls under the revised MSME definition can apply for Udyam registration.
Any business entity that falls under the MSME definition can apply for MSME registration.
- Micro enterprises - with a turnover up to Rs. 5 crore and investment up to Rs. 1 crore
- Small enterprises - with a turnover up to Rs. 50 crore and investment up to Rs. 10 crore.
- Medium enterprises - with a turnover up to Rs. 250 crore and investment up to Rs. 50 crore
Yes, traders that fall under the MSME definition are eligible for Udyam registration.
No, only one Udyam registration is allowed for each business entity.
Yes, Aadhaar card of the proprietor or the managing partner or the authorized signatory is mandatory for Udyam registration.
No, only one Udyam registration is allowed per PAN card.
There is no specific NIC code for Udyam registration. One needs to select one or more NIC codes that represent the business activities.
Udyam registration provides various benefits to MSMEs, including easier access to credit, subsidies, and various government schemes. It also helps in enhancing the credibility of the business and increases its visibility in the market.
The Udyam registration process is online, and the registration certificate is issued immediately after successful submission of the application.
Yes, there are chances of rejection of Udyam registration if the information provided is incorrect or incomplete.
Yes, Udyam registration has replaced the earlier registration process of MSMEs under