MSME Certification

MSME CERTIFICATION

Udyam Registration or MSME Registration is the new process for registering MSME (micro, small and medium enterprises) launched by the Ministry of Micro, Small & Medium Enterprises on July 1, 2020. The Ministry had also revised the definition of MSMEs from the same date. An enterprise for this process is known as Udyam, and its Registration Process is known as Udyam Registration. A permanent registration number along with a recognition certificate will be issued after Registration.

The Udyog Aadhaar registration has been transformed to the Udyam registration since July 2020. Udyam registration has made the process more accessible than it was earlier, at the time of Udyog Aadhaar registration. Udyam registration is essential for availing the various benefits of schemes or programs of the Ministry of MSME, such as the Credit Guarantee Scheme, public procurement policy, additional edge in Government Tenders and protection against delayed payments, etc.

Udyam Registration Certificate

After completion of the process of Udyam Registration, a certificate will be issued online. This Udyam Registration Certificate will have a dynamic QR Code from which the details about the enterprise can be accessed.

Renewal of Udyam Registration

Udyam Registration Number is a permanent identification number, and there will be no need for renewal of Registration.

Udyam Registration Benefits

The Udyam Registration is a simple process and there is no need to handle the paperwork for obtaining Udyam Registration. Having Udyam Registration for your venture entitles your Business to the following benefits:

  1. Special Preference in Procuring Government Tender. Udyam registration will help to get the bank loans without Collateral/ Mortgage. 1 % percent Exemption on the interest rate on Bank Overdraft (OD)
  2. There are various tax rebates available for Udyam registered enterprises.Higher preference is provided to businesses registered under Udyam for government license and certification.
  3. Registered Udyam gets tariff subsidies and tax and capital subsidies
  4. Concession in Electricity Bills
  5. It gives protection against the delay in payment from Buyers
  6. Tax Rebates. Special 50% discount on Government fees for Trademark and Patent filing
  7. Fast Resolution of Disputes

Who can apply for Udyam registration?

Any person who aspires to establish a micro, small, or medium enterprise can avail of Udyam Registration.

  1. Proprietorships,
  2. Hindu Undivided Family (HUF),
  3. Partnership Firm,
  4. One Person Company,
  5. Private Limited Company,
  6. Limited Company,
  7. Producer Company,
  8. Limited Liability Partnership,
  9. any association of persons,
  10. Co-operative societies or any other undertaking can obtain MSME Udyam Registration in India. 

Revised MSME definition – The Atamnirbhar Bharat package

After 14 years since the MSME Development Act, a revision in the MSME definition was announced in the Atmnirbhar Bharat package on 13.05.2020 to bring more units under the purview of the schemes announced. According to this package, the composite criteria for the definition of MSME are investment and turnover; the limit has been revised upwards. The distinction between the service and the manufacturing sector has also been eliminated.

The limit of the Micro units (both manufacturing and services) was increased to Rs. 1 Crore investment and Rs. 5 Crore turnover.

Similarly, the limits of the small unit also increased to Rs. 10 Crore of investment and Rs 50 Crore of turnover.

The limits of the medium enterprises were increased to Rs. 20 Crore of investment and Rs. 100 Crore turnover.

For better understanding, go through the table attached here:

Composite Criteria: Investment in Plant / Machinery and Turnover

Sl. No

Type of Enterprises

Investment

Turnover

1

Micro enterprises

Less than Rs.1 Crore

Less than Rs.5 Crore

2

Small enterprises

Less than Rs.10 Crore

Less than Rs.50 Crore

3

Medium enterprises

Less than Rs.20 Crore

Less than Rs.100 Crore

When to apply for MSME Udyam Registration?

Obtaining Udyam Registration is not mandatory and is at the sole discretion of the Entrepreneur. However, it is recommended that most businesses obtain MSME registration right after Registration to enjoy various benefits offered by the Government.

Documents Required for Udyam Registration Online

  1. The Online Udyam Registration application process is based on self-declaration, and there is no further requirement to upload any documents.
  2. The applicant will only need to furnish their 12-digit Aadhaar Number, PAN, and Bank Account details of Business for the registration process.
  3. Udyam registration of New Enterprise – Udyam Registration Portal
  4. The new enterprise is required to follow the below steps to register on Udyam Registration Portal:
  5. The new enterprise is willing to establish itself as an MSME and needs to apply for online Udyam Registration in Udyam Registration Portal.
  6. The application is based on self-declaration, and there is no further requirement to upload any documents, certificates, papers, or proofs. Udyam registration is free of cost.
  7. An Aadhaar number is mandatory for obtaining Udyam Registration. Following Aadhaar number is required based on the type of firm

Type of firm

The person whose Aadhaar number is required

Proprietorship firm

Proprietor

Partnership firm

Managing partner

Hindu Undivided Family

Karta

Company or a Co-operative Society or a Trust or a Limited Liability Partnership

Authorized signatory

  1. PAN and GST-linked details on investment and turnover of enterprises will be taken automatically from Government databases.
  2. MSME online system is fully integrated with Income Tax and GSTIN systems.
  3. On successful application submission, the enterprise will be assigned a ‘Udyam Registration Number’ (i.e., permanent identity number).
  4. On completion of the registration process, the enterprise shall be issued an ‘Udyam Registration Certificate.’

Note: Importantly, an enterprise can file only one Udyam Registration. Additionally, multiple numbers of enterprise activities, i.e., manufacturing, services, or both, can be added to one Udyam Registration. 

BRITSI can help you get UDYAM registration and LEDGERS Accounting Software for providing estimates, invoices, tracking purchases, filing GST returns, and generating GST eWay bills.

Documents Required For UDYAM Registration

  1. Aadhar Card
  2. PAN Card
  3. Business address proof
  4. Copies of Sales bill or purchase Bill
  5. Partnership Deed or MoA and AoA
  6. Bills of machinery
  7. Copies of licenses

CA Services List is as below:

Who is eligible for Udyog Aadhar?

Anyone wishing to establish a micro, small, or medium enterprise can apply for Udyam Registration.

  1. Partnership Firm
  2. One Person Company
  3. Proprietorships
  4. Private Limited Company
  5. Limited Company
  6. Producer Company
  7. Limited Liability Partnership
  8. Any association of persons
  9. Co-operative societies
  10. Any other undertaking
  11. Hindu Undivided Family (HUF)

Note: As per the Revised Guidelines for MSME, retail and wholesale trades will be allowed to register on Udyam Registration Portal.

What are Udyog Aadhar Fees?

The Registration for MSMEs under Udyam Registration Portal is entirely online, and there is no fee for MSME registrations. It is free of cost.

The registration process can be tedious and time-consuming, but BRITSIs can help you make it easier. With our assistance, you can quickly get your Udyog Aadhar/Udyam Registration done with minimal effort and hassle.

What is Udyog Aadhar Benefits?

  1. Udyog Aadhar/ Udyam Registration will be an enterprise’s permanent registration and primary identification number.
  2. MSME Registration is paperless and based on self-declaration.
  3. Udyam registration is permanent, and there will be no need for renewal.
  4. Any activities, including manufacturing, service, or both, may be specified in one Udayam Registration.
  5. Enterprises may register themselves on GeM (Government e Portal along with the Udyam Registration.
  6. MSMEs themselves can also be onboard on the TReDS Platform 
  7. The Udyam Registration may also help MSMEs in availing the benefits of the following Schemes of the Ministry of MSMEs :
  8. Credit Guarantee Scheme
  9. Public Procurement Policy
  10. Additional edge in Government Tenders & Protection against delayed payments.
  11. Udyam registered entity becomes eligible for priority sector lending from Banks.

What is NIC code for Udyam Registration?

The NIC code is a business code that is provided by the government to track the business proceedings for the organization under the micro, small and medium enterprises.

How many NIC codes can one add to NIC registration?

One can add a maximum of 10 NIC codes for Udyam registration.

What is the Udyam Registration?

Udyam registration is the latest Registration procedure for the Micro, Small, and Medium Enterprises (MSME), launched on July 1, 2020, by the government to ease the registration process.

Who is eligible for Udyam registration?

Anyone intending to establish micro, small, or medium enterprise may apply online. for Udyam registration.

Who is eligible to apply for MSME registration?

MSME registration can be obtained by the following entities that fulfill the revised MSME classification criteria of annual turnover and investment:

  1. Individuals, startups, business owners, and entrepreneurs
  2. Private and public limited companies
  3. Sole proprietorship
  4. Partnership firm
  5. Limited Liability Partnerships (LLPs)
  6. Self-Help Groups (SHGs)
  7. Co-operative societies
  8. Trusts
  9. These entities involved in the following activities are eligible for Udyam registration:
  10. Manufacturing Enterprises
  11. Service Enterprises
  12. Small retailers or wholesalers

What are the definitions of MSME effective from 01/7/2020?

Composite Criteria: Investment in Plant / Machinery and Turnover

Sl.No

Type of Enterprises

Investment

Turnover

1

Micro enterprises

Less than Rs.1 Crore

Less than Rs.5 Crore

2

Small enterprises

Less than Rs.10 Crore

Less than Rs.50 Crore

3

Medium enterprises

Less than Rs.20 Crore

Less than Rs.100 Crore

Are traders eligible for Udyam registration? 

Earlier, the MSME registration covered only manufacturing and service industries. The scheme does not cover trading companies. However, in July 2021, the government announced that the wholesale and retail trade would come under the MSME classification and thus can apply for their wholesale/retail business registration.

Can we have two Udyam registrations?

When the enterprises are different, i.e., established under other names and registered or incorporated separately, the enterprise proprietor can apply for MSME registration. However, an enterprise cannot file for more than one Udyam Registration. All the activities, including manufacturing or service, should be specified or added to one Udyam Registration. An entrepreneur can add additional actions to the Udyam Registration by clicking on the ‘Update Details’ option on the homepage.

Is the Aadhar card compulsory for Udyam Registration?

Yes. For obtaining Udyam registration, an Aadhaar card is compulsory. In case an applicant is other than the proprietor, the Aadhaar card of the partner and the director will be required.

Can I obtain more than one Registration on the same PAN?

No, one cannot take more than one Udyam Registration on the same PAN.

What is the NIC code for Udyam Registration?

The NIC code is a business code that is provided by the government to track the business proceedings for the organization under the micro, small and medium enterprises. One can add a maximum of 10 NIC codes for Udyam registration.

What are the uses of Udyam Registration?

  1. MSME registration helps in getting government tenders
  2. Under bank loan, 15% import subsidy on fully automatic machinery
  3. It becomes easy to get licenses, approvals, and registrations, irrespective of the field of business
  4. Compensation of ISO certificate expenditure
  5. It helps in getting low-interest rates on loans
  6. Registered MSMEs get tariff subsidies and tax and capital subsidies
  7. Gets exemption under Direct Tax Laws
  8. Concession in electricity Bills
  9. Protection against payments (Delayed payments) MSME Samadhan
  10. Technology and quality up-gradation support to MSMEs

How long does it take to obtain Udyam Registration?

The processing is dependent on the submission of the documents by the client.

Are there any chances of rejection of Udyam?

The application will be approved based on the information provided by the applicant. The documents and details should be up to date to avoid any chances of rejection.

Is Registration of MSME /Udyog Aadhar replaced with Udyam Registration?

Yes, MSME / Udyog Aadhaar registration is replaced with Udyam Registration. As per the notification of MSME dated 26.06. 2020, Udyam Registration is the new process of Registration launched by the Ministry of Micro, Small, and Medium Enterprises, effective from July 1, 2020.

Is the MSME Udyam registration compulsory?

No. The enterprises that come under the MSME category need not mandatorily apply for MSME registration. However, it is better to obtain MSME/Udyam registration as the government provides a lot of benefits in terms of loan facilities, easy access to credit, low-interest rates, eligibility to many schemes, etc., to the enterprises that have Udyam registration.

Do I need multiple registrations for manufacturing plants in different cities?

No. The MSME/Udyam Registration Certificate is for a single entity irrespective of multiple branches or plants. However, information about various departments or plants must be furnished.

Whose Aadhaar number is required to be entered when filling the MSME registration?

In the case of a company, its authorized signatory should provide the PAN and Aadhaar number while filling in the MSME registration.

Is Aadhar mandatory for Udyam Registration?

Yes, Aadhar is mandatory for obtaining the Udyam registration.

What documents are required for Udyam Registration?

The user will have to provide their 12 digit Aadhar number, PAN Card, and the bank account details of the business for the registration process.

What is the validity of Udyam registration?

The registration is valid till the existence of enterprises and there is no need to renew the registration.

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