Udyam Registration

Udyam Registration is a new registration process introduced by the Government of India for small and micro-enterprises to avail various benefits and schemes. The main goals of Udyam Registration are to support Indian small enterprises and encourage ease of doing business. It was implemented to take the place of the earlier registration method known as the Udyog Aadhar Registration.

1.     Objective:

Udyam Registration is primarily aimed at promoting the ease of doing business and providing support to MSMEs in India. It replaces the earlier process known as Udyog Aadhar Memorandum (UAM).

2.     Eligibility Criteria:

To qualify for Udyam Registration, your business must fall within the definition of a Micro, Small, or Medium Enterprise. These categories are defined based on the investment in plant and machinery or equipment and the annual turnover of the enterprise. The specific criteria are as follows:

Micro Enterprise:

Investment in plant and machinery or equipment should not exceed INR 1 crore, and annual turnover should not exceed INR 5 crores.

Small Enterprise:

Investment in plant and machinery or equipment should not exceed INR 10 crores, and annual turnover should not exceed INR 50 crores.

Medium Enterprise:

Investment in plant and machinery or equipment should not exceed INR 50 crores, and annual turnover should not exceed INR 250 crores.

3.     Benefits of Udyam registration

Here are some of the benefits of Udyam registration :

Access to Government Programmes and Subsidies:

Companies that have registered with Udyam are qualified to take part in a number of government initiatives, programmes, and schemes.

Bank loans and credit:

Bank loans and credit are made easier since Udyam Registration is frequently required as part of the loan application process at banks and other financial organizations.

Improved Market Access:

Udyam Registration can increase MSME reputation and market visibility. They may become more attractive to partners, suppliers, and clients .

Subsidized Registration and Patent/Trademark Fees:

Organizations with Udyam registrations may be eligible for government grants to cover the cost of filing for patents and trademarks. This can support creativity and safeguard intellectual property.

Technology Upgrades:

A number of government initiatives and programmes are designed to encourage MSME to modernize their systems and procedures. Businesses with Udyam registrations may be eligible for grants and support in this area.

Types of Udyam Registration

There are three categories of MSME registration based on certain business factors, such as investments and turnover.

These are :

• Micro Enterprises: Enterprises where investment < ₹1 crore and turnover < ₹5 crores.
• Small Enterprises: Those whose investment < ₹10 crores and turnover < Rs 50 crore
• Medium Enterprises: Those whose investment <Rs. 50 crore and yearly turnover < 250 crores.

Documents Required for Udyam Registration

In the list of documents that are required for Udyam registration online, the elements required are as follows-

1. Aadhaar card
2. Pan card
3. Bank account details
4. Business address
5. Details of business activities
6. Information of the investment (plant, equipment, machinery)
7. Information on the turnover
8. Duplicates bill of sale and purchases
9. Partnership deed (if any)
10. NIC code of 2 digits
11. Copies of bill and license of the machinery purchased
12. Details of the applicant such as mobile number, email address, etc.
13. Certificate of disability (if any)
14. Miscellaneous information such as the number of employees, Social category, etc.