The Micro, Small, and Medium Enterprise sector has reached breaking point as a result of the pandemic’s attack. The outlook is dismal, as there appears to be no way for small businesses to recover without government intervention following the second wave. In this regard, the government is adopting a variety of steps, one of which is the Udyam Registration for Recognition.
Also, Read- print udyam registration certificate
What is the aim of registering for Udyam?
Small firms can register on Udyam, a website that allows them to do so. It is overseen by the Ministry of Micro, Small, and Medium Enterprises (MSME). It’s a website where businesses may register and the government will recognize them. It would be easier to obtain information about the company if you register. It would also make it easier to integrate other government initiatives, rules, and compliance needs, such as Income Tax and GST, more quickly (Goods and Services Tax).
Why is it so important for MSMEs to join Udyam?
The following elements contribute to the relevance of udyam registration for SMEs.
- By registering on Udyam, your company can get business tenders.
- Bank loans and credit for your company can be obtained at 1.5 percent lower interest rates than regular bank loans.
- You can take advantage of a number of tax reductions and exemptions after registering with Udyam.
- Small businesses in a range of industries would benefit from expedited licence approvals, certifications, and government registrations. Businesses that are not registered with Udyam will be given preference.
- Tax, tariff, and capital subsidies, as well as cheaper patent costs, are all advantages.
Criteria for Small Business Eligibility and the Application Process:
- Eligibility Requirements:
Businesses in the manufacturing and service industries are the most likely candidates for Udyam Registration. Previously, wholesale and retail traders were not eligible for Udyam. Wholesalers and retailers, on the other hand, are now eligible to apply after being classified as Micro, Small, and Medium Enterprises.
- The following is the procedure for submitting an application:
Here are some helpful hints for firms going through the application process.
- Each company must register on Udyam separately, regardless of whether it engaged in two or more activities.
- Aadhaar is a one-of-a-kind identifier.
You must submit the owner’s Aadhaar number if the company is a sole proprietorship.
If the company is a partnership, you must provide the Aadhaar number of the managing partner.
The Karta’s Aadhaar number must be given if the business is owned by a Hindu Undivided Family (HUF).
- The application process is straightforward, and businesses only need to comply once.
What does it mean to be a micro, small, or medium-sized business?
Udyam Registration covers the following enterprises.
- Micro enterprises can invest up to INR 1 crore and make up to INR 5 crore in sales.
- Small firms with a capital investment of up to INR 10 crore and a turnover of up to INR 50 crore are eligible to apply.
- Medium-sized firms with revenues of up to INR 250 crore and a capital investment of up to INR 50 crore.
What is the MSME Udyam Registration Process in India?
On the Udyam Registration portal, the registration form will be available.
- The proprietor must provide his Aadhaar number in a proprietorship firm; the controlling partner’s Aadhaar card is required in a partnership firm; and the karta’s Aadhaar card is required in a Hindu Undivided Family (HUF).
- The GSTIN and PAN, as well as the Aadhaar number, must be supplied by the organisation or its authorised signatory in the case of a Company, a Cooperative Society, a Limited Liability Partnership, a Society, or a Trust.
- When a company registers as an Udyam with a PAN but submits information that is inconsistent from previous years when it did not have a PAN, it is required to self-declare.
- Enterprises are not allowed to file for more than one Udyam Registration, although they are allowed to add or describe any number of operations, including service, manufacturing, or both, in a single Udyam Registration.
- Anyone who seeks to conceal facts or knowingly misrepresents self-declared numbers and facts in the Udyam Registration or updation procedure faces the penalties set forth in section 27 of the Act.
- All existing and registered enterprises under EM–Part-II or UAM must re-register on the Udyam Registration Portal on or after July 1, 2021.
- According to this notice, all businesses that are registered until June 30, 2021 will be reclassified.
- Existing enterprises that were established before June 30, 2020, will remain valid until December 31, 2021.
Any firm that has already been registered with the Ministry of Micro, Small and Medium Enterprises through another organisation is eligible to apply for MSME Udyam Registration.