Learn how registering with Udyam Registration can help your small business thrive in today’s competitive economy. With this helpful guide, you can learn how to register your business.
Small businesses are essential to every economy. They create jobs, generate wealth, and contribute to the country’s general progress. Small businesses in India are known as Micro, Small, and Medium Enterprises (MSMEs), and they account for roughly 30% of the country’s GDP. The Government of India has developed many programs and policies to assist these enterprises in growing and succeeding, one of which is Udyam Registration.
The Government of India will start Udyam enrollment, a new registration process for MSMEs, on July 1, 2020.
The goal of this registration is to provide MSMEs with numerous perks and programs, such as financing, subsidies, and other benefits. In this blog post, we will go over the various features of Udyam enrollment and how they can help small businesses succeed.
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What exactly is Udyam Registration?
The Government of India has launched a new registration method for MSMEs called Udyam enrollment. It is a completely online and low-cost process. The registration’s goal is to provide numerous benefits and programs to MSMEs, such as access to finance, subsidies, and other perks.
Criteria for Registration with Udyam
A business must meet the following qualifying criteria to register as an MSME through the Udyam Registration process:
- The company must be registered as a sole proprietorship, partnership, limited liability partnership, or private limited company.
- Plant and machinery or equipment investments must not exceed Rs. 1 crore for micro-enterprises, Rs. 10 crore for small businesses, and Rs. 50 crores for medium-sized businesses.
- The company’s turnover cannot exceed Rs. 5 crores for micro-enterprises, Rs. 50 crores for small businesses, and Rs. 250 crores for medium-sized businesses.
The Advantages of Udyam Registration
Udyam Registration offers a variety of perks and schemes to MSMEs. Some of the advantages are as follows:
- Easy Access to Credit: MSMEs registered through the Udyam enrollment process can take use of several credit-related schemes and perks. Banks and other financial institutions can provide them with collateral-free loans of up to Rs. 2 crores.
- Subsidies: MSMEs registered through the Udyam enrollment process are eligible for several government subsidies. These incentives can assist MSMEs in lowering expenses and increasing profitability.
- Priority in Government Tenders: MSMEs registered under the Udyam enrollment process are given preference in government tenders. The government has mandated that MSMEs account for 25% of its purchases, with women-led MSMEs accounting for 3%.
- Payment Protection: MSMEs registered through the Udyog enrollment process are shielded against late payments. All payments to MSMEs must be made within 45 days, according to the government.
How Do You Register for Udyam?
The application for Udyam enrollment is completed fully online. To apply for Udyog enrollment, follow the steps below:
- Go to the website Udyam Registration Portal, https://udyam-registrations.org.
- Complete the registration form with all the required information.
- Upload the required documents, such as your PAN card, GST registration certificate, and bank account information.
- When you submit the form, you will be given an acknowledgment number.
- The Udyam Registration certificate will be issued once the registration is complete.
Documents Required for Registration with Udyam
To apply for Udyam Registration, the following documents are required:
- PAN card
- GST registration certificate
- Aadhaar card of the proprietor/partners/directors
- Bank account details
- Business address proof
- Details of the business activities
Udyam Registration Renewal
The registration certificate obtained through Udyam Registration is valid for life. However, the company’s information must be updated on a regular basis. If any of the information submitted during registration changes, the company must update it on the Udyam Registration portal.
Also Read: Udyam Registration – The Hassle-Free Way to Register Your Business
Conclusion
Udyam Registration is a critical step for MSMEs to unlock several government advantages and initiatives. It not only allows for easy finance, but it also provides subsidies, preference in government procurement, and protection against late payments. The registration process is totally online and minimum of charge, making it simple for firms to apply.
If you are an MSME, it is recommended that you register with Udyam to unlock the power of your MSME and expand your firm. Udyog enrollment can be the key to small business success and assist MSMEs in contributing to the Indian economy’s growth.