UDYAM Registration
Udyam registration, also known as MSME Registration, is a certification provided by the Ministry of Micro, Small and Medium Enterprises. By obtaining Udyam registration, a business qualifies for various government schemes and subsidies specifically designed for small enterprises.
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- Overview
- Registration
- Benifits
- Document
- Eligibility
- Canjain Support
UDYAM Registration – An Overview
Udyam Registration, also known as SSI or MSME registration, is a certification granted to micro, small, and medium-sized enterprises in India under the Micro, Small and Medium Enterprise Development Act of 2006 (MSMED). Previously, this certification was commonly referred to as MSME registration. The primary objectives of the MSME department in relation to Udyam registration include:
Facilitating the ability of micro, small, and medium enterprises to effectively compete in the global market;
Encouraging the extensive growth of micro, small, and medium enterprises to address the pervasive issues of unemployment and poverty;
Providing a centralized access point for SSI units to benefit from various government schemes;
Protecting SSI units from financial exploitation by larger industries.
Udyam Registration Eligibility
Udyam registration is not accessible to all businesses. Eligibility is restricted to entities that are categorized as micro, small, or medium enterprises according to the criteria outlined in the table below, which is based on their investment in plant and machinery.
| Classification | Investment in Plant & Machinery or Equipment | Turnover |
|---|---|---|
| Micro-Enterprise | Not more than 1 Cr. | Not more than 5 Cr. |
| Small Enterprise | Not more than 10 Cr. | Not more than 50 Cr. |
| Medium Enterprise | Not more than 50 Cr. | Not more than 250 Cr. |
Benefits of Udyam Registration
- Upon acquiring Udyam registration, a business is entitled to the following advantages
The applicant will obtain financial assistance for attending international exhibitions to present their products.
Additionally, the applicant will qualify for government grants.
The registration process will enable the seamless establishment of business bank accounts.
It will also permit businesses to seek government microloans and other advantageous programs.
This will lead to more accessible approval of bank loans at reduced interest rates.
Documents Required for Udyam Registration
- The primary requirement for acquiring Udyog Aadhaar in the case of a proprietorship is the applicant’s personal Aadhaar. In addition to this, only an email address and a mobile number are necessary. It is important that the mobile number is registered in the applicant’s Aadhaar.
- In case of proprietorship, the applicants Aadhaar must be used.
- In case of a partnership, the partners Aadhaar can be used.
- In the case of a company, the Directors Aadhaar can be used.
- In the case of LLP, the Designated Partners Aadhaar can be used.
In the event that an applicant or an authorized signatory of a business lacks an Aadhaar number, it is necessary for them to first submit an application for Aadhaar at an Aadhaar enrollment center. After successfully obtaining the Aadhaar, the process for Udyog Aadhaar may commence.
Details Required for Udyam Application
- The applicant’s 12-digit Aadhaar number.
- Owner’s Name – the name of the authorized signatory or owner as it appears on the Aadhaar Card. If there is a discrepancy between the name and the Aadhaar number, the applicant will be unable to finalize the form.
- Social Category – the caste of the applicant: General/Scheduled Caste/Scheduled Tribe/Other Backward Classes.
- Enterprise Name – the name under which the enterprise is recognized by customers and the public.
- An individual may acquire multiple Udyog Aadhaar registrations using the same Aadhaar Number if they operate several businesses.
- Organization Type – the legal classification of the business entity.
- PAN – the Permanent Account Number of the proprietor in the case of a sole proprietorship. For companies or LLPs, the PAN of the entity seeking Udyam registration is required.
- Plant Location – the address of all business locations.
- Official Address – the primary address or corporate office address, including mobile and email contact information.
- Commencement Date – the date on which the business commenced operations.
- Previous Registration Information – information regarding any prior MSME registration, if relevant.
- Bank Information – the details of the company’s bank account, including the IFSC Code and Bank Account Number.
- Primary Activity – the principal area of business activity, whether manufacturing or service-oriented.
- Employees – the total number of individuals employed by the business.
Investment in Machinery/Equipment – the financial investment made in machinery and equipment by the business, excluding the value of buildings or land.
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