MSME/Udyam Registration

Contents Covered

• What is Udyam Registration?
• Benefits of Udyam Registration
• Documents Required for Udyam Registration
• Process to Get Udyam Registration Online
• Conclusion

What is Udyam Registration?

Udyam Registration is a process introduced by the Government to register as Micro, Small, and
Medium Enterprises (MSMEs). It’s an online platform that helps businesses formalize their
existence, making it easier for them to access government schemes, incentives, and support.

Benefits of Udyam Registration

• Smooth Payment Cycle: Section 43B (h) provides large companies or entities to settle their dues with MSMEs within the  specified time frame, which is 15 days without a written agreement and 45 days with an agreement. The provision ensures better bargaining power for MSMEs when negotiating payment terms with larger enterprises or entities. Sec 43B (h) is applicable to Manufacturing and services Providers Only.
• Better chances of getting Government tenders & at reduced fees: Registered MSMEs have priority in getting government tenders and also exempt from paying tender fees
  and earnest money.
• Reimbursement for Patent, Trademark, Geographical Indications (G.I.) registration and
  ISO certification: The maximum financial assistance to the eligible applicants under the IPR component is as follows:
  

  S.No.	Item	Maximum Financial Assistance
  1.	Foreign Patent	Rs. 5.00 lakhs
  2.	Domestic Patent	Rs. 1.00 lakhs
  3.	GI Registration	Rs. 2.00 lakhs
  4.	Design Registration	Rs. 0.15 lakhs
  5.	Trademark	Rs. 0.10 lakhs

• Concession on Electricity Bills under Low Tension Power Tariff (LTPT) Subsidy:
  Registered MSMEs can also get concession upto 20% on Electricity Bill under LTPT
  Subsidy scheme. It may vary from state to state.

• Access to Government Schemes like Credit Linked Capital Subsidy, Credit Guarantee,
  Public Procurement Policy, and many more.

• Lower Interest Rates: Ability to secure bank loans at lower interest rates and collateralfree loans from banks.

• Priority Sector Lending: Eligible for priority sector lending from banks more efficiently
  and at favorable terms.

Documents Required for MSME Registration

• Aadhar Card of Proprietor/ Authorized Partner/ Authorized Director/ Karta
• PAN Card of the Proprietorship/ Partnership/ Company/ LLP/ HUF
• Copy of ITR Filed, if available
• GSTIN Number, if available
• Mobile Number/ Email Id of Proprietorship/ Partnership/ Company/ LLP/ HUF
• Bank Details of the Company
• Details of Business Activity
• Details of Number of Persons Employed in Business

Process to Get Udyam Registration Online

To obtain Udyam Registration online, MSMEs can follow these simple steps on the Udyam
registration portal:

• Visit the Udyam registration portal.
• On the homepage, click the option ‘For new entrepreneurs who are not registered yet as MSME or those with EM-II.’
• Enter the ‘Aadhaar Number’ and the ‘Name of Entrepreneur,’ then click the ‘Validate & Generate OTP’ button.
• An OTP will be sent to the mobile number linked with the Aadhaar card. Enter the OTP and click on the ‘Validate’ button.
• Once the Aadhaar is validated, proceed to the PAN verification page. Enter the ‘Type of Organisation’ ‘PAN’ number, and click the ‘Validate’ button. Also, indicate whether you have filed the previous year’s ITR and if you have a GSTIN.
• The Udyam registration application form will appear. Fill in all required details, including the name of the entrepreneur, mobile number, name of the enterprise, location of the plant/unit, address of the enterprise, status of enterprise, bank details, and activity of the unit, NIC code, and number of persons employed.
• Provide the following Details. Click the Submit button and Get the Final OTP. Investment in plant and machinery details and turnover details.
  Select the declaration.
• Enter the final OTP received and submit the form. You will receive the Udyam e
  
  

Conclusion

Lastly, Udyam Registration is not mandatory. If anyone wants to avail the above mentioned benefits and also many more, which is provided under the MSMED Act from the Central or State Government and the Banking Sector, then must apply for Udyam Registration. There is no any Govt. fee for Udyam registration and also certificate is available hand to hand after filing registration.

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