What is Udyam (MSME) Registration?

Udyam registration is a simplified online registration process for micro, small, and medium-sized enterprises (MSMEs) in India, introduced in July 2020 by the Ministry of Micro, Small and Medium Enterprises (MSME) to replace the earlier Udyog Aadhaar Memorandum (UAM) registration process. It is based on self-declaration and requires no documents or proof for registration. MSMEs need to provide basic information such as the name, location, and investment in plant and machinery or equipment to complete the registration process. Once registered, MSMEs receive a unique Udyam registration number (URN) and a certificate of registration, which enables them to access various benefits provided by the government of India, including easy access to credit, subsidies, and other support schemes.

Who Need to Register for Udyam (MSME) Registration?

All types of entities that qualify as micro, small, or medium-sized enterprises (MSMEs) under the MSME Act, 2006 are required to register for Udyam (MSME) registration. This includes sole proprietorships, partnerships, Hindu undivided families (HUFs), private limited companies, limited liability partnerships (LLPs), co-operative societies, and any other type of entity that meets the MSME criteria.

As per the revised MSME classification, the investment and turnover limits for the registration of MSMEs are as follows:

• Micro enterprises: Up to Rs. 1 crore investment and Rs. 5 crore turnover
• Small enterprises: Up to Rs. 10 crore investment and Rs. 50 crore turnover
• Medium enterprises: Up to Rs. 50 crore investment and Rs. 250 crore turnover

MSMEs that meet the above investment and turnover criteria are required to register for Udyam (MSME) registration to avail various benefits provided by the government of India, such as easy access to credit, subsidies, and other support schemes.

Procedure of Online Udyam (MSME) Registration through LegalHisaab

Legalhisaab is the most famous Udyam (MSME) registration service provider in India. We process Udyam (MSME) registration Application within same days. Legalhisaab Udyam (MSME) experts will assist you in getting the Udyam (MSME) registration and also provide free consultation.

• Get Free Consult with our Experts
• Provide Documents and Details
• Our Exports will process your application in same day
• Application number shall be shared for your reference
• Udyam (MSME) Department will issue Certificate in within 1-2 working days*
• As soon as we will get your Udyam (MSME) Registration Certificate, we will send you by E-mail.

Benefits of Udyam (MSME) Registration

Udyam (MSME) registration provides several benefits to micro, small, and medium-sized enterprises (MSMEs) in India. Some of the key benefits are:

• Easy access to credit: Udyam registration enables MSMEs to easily access credit from banks, financial institutions, and other lenders, as they are recognized as registered entities.

• Collateral-free loans: Udyam registered MSMEs can avail collateral-free loans under various government schemes, such as the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE).

• Eligibility for subsidies: Udyam registered MSMEs are eligible for various subsidies provided by the government of India for MSMEs, such as subsidies for technology upgradation, quality certification, and patent registration.

• Preferential treatment in government tenders: Udyam registered MSMEs get preferential treatment in government tenders, as the government has mandated a certain percentage of its procurement to be from MSMEs.

• Reduced interest rates: Udyam registered MSMEs can avail loans at lower interest rates under various government schemes, such as the Prime Minister’s Employment Generation Programme (PMEGP).

• Protection against delayed payments: Udyam registered MSMEs can file complaints against buyers who delay payments, and the government provides a mechanism for speedy settlement of such disputes.

Overall, Udyam registration provides various benefits to MSMEs and helps in promoting the growth and development of the MSME sector in India.

Steps after Obtaining Udyam (MSME) Registration

Once an entity obtains Udyam (MSME) registration, the following are the steps that need to be taken:

• Update existing registrations: Any existing registration, such as GST registration, PAN, and other licenses, needs to be updated with the new Udyam registration number.

• Avail benefits: MSMEs can start availing the various benefits provided by the government of India, such as easy access to credit, subsidies, and other support schemes.

• Registration with the Udyam portal: MSMEs are required to update their information on the Udyam registration portal periodically. Any changes in investment or turnover need to be updated on the portal.

• Compliance with regulations: MSMEs need to comply with all applicable regulations, such as tax regulations, labor laws, and environmental regulations, to ensure that they continue to enjoy the benefits of Udyam registration.

• Growth and expansion: Udyam registration enables MSMEs to grow and expand their business. MSMEs can explore new markets and opportunities, invest in new technologies and equipment, and expand their operations to new locations.

• Renewal: Udyam registration is valid for a period of 5 years. After 5 years, MSMEs need to renew their registration to continue availing the benefits provided by the government.