What is Udyam Registration, and why should you do it?

The new procedure of classification and registration of firms will begin on July 1, 2020, as announced by the Union Ministry of Micro, Small, and Medium Enterprises (MSME) in a notification dated June 26, 2020. For this reason, the firm will be known as Udyam, and the registration procedure will be known as “Udyam Registration

Who may register for Udyam?

Anyone who wants to start a micro, small, or larger business can do so by filling out an online udyam form.

To register for Udyam, what papers do I need?

There is no need to upload any documents, certifications, papers, or proofs to the Online Udyam Registration application procedure because it is based on self-declaration.

For the registration procedure, the user will just need to give their 12-digit Aadhaar number, Pan card, and business bank account data.

The following are some of the other highlights of this process:

The MSME registration procedure is entirely electronic, paperless, and self-declaratory. For registering an MSME, no paperwork or evidence is required to be supplied.

  • Registration will necessitate the use of an Aadhaar number.
  • Following registration, you will be given a registration number.
  • An Udyam Registration Certificate will be provided once the registration procedure has been completed.
  • This certificate will include a dynamic QR code that will allow you to access our Portal’s web page as well as corporate information.
  • Registration will not be required to be renewed.
  • Details on the investment and revenue of businesses connected to PAN and GST will be automatically retrieved from the relevant government databases.
  • The online system for the MSME Ministry would be completely linked with the Income Tax and GSTIN systems.
  • Those with an EM-II or UAM registration, as well as any other registration issued by a Ministry of MSME authority, must re-register.
  • No business should have more than one Udyam Registration. However, under a single Registration, any number of activities, including manufacturing, service, or both, maybe indicated or added.

Registration of existing MSMEs/Enterprises on the Udyam Registration Portal:

  • On or after July 1, 2020, all present businesses registered under EM–Part-II or UAM must re-register on the Udyam Registration Portal.
  • All businesses that were registered before June 30, 2020, will be classed in line with this notice.
  • Existing firms that were established before June 30, 2020, will only be valid until December 31, 2021.
  • Any company that is already registered with another government agency in the Ministry of Micro, Small, and Medium Enterprises must also register with Udyam Registration.

Udyam Registration Benefits:

Udyam registration is extremely important, especially for small and medium-sized businesses in India. It has been shown that a country’s total economic growth is primarily dependent on its small and medium-sized companies.

Udyam registration online allows entrepreneurs to take advantage of tremendous benefits under the Indian government’s current MSME plan. One of the most important advantages of registering your business is that you may simply be involved in state and federal government business programs. If you wish to take advantage of these government-sponsored programs, you must first complete the necessary registration process.

Some of the benefits of enrolling for Udyam are as follows:

Protection: The company owner will be protected from payment delays.

Loans with no collateral: You can also get unsecured loans from the bank.

Benefits of Octroi: The octroi benefits are available to the company owner.

Charges should be claimed: Make a claim for stamp duty and registration fees.

Interest Rates: The bank’s interest rates can be lowered.

Electricity price reductions: Electricity rates may be reduced for company owners that use Udyog Aadhar.

Interest on OD: Overdrafts are exempt from a 1% interest charge.

Subsidies: Eligible for NSIC and credit rating subsidy, as well as IPS subsidy.

Reimbursement: Payment for getting the ISO certificate will be reimbursed.

Benefits of Making a Reservation: MSME and SSI have reserved items for exclusive production.

Exemption from excise: Take advantage of the Excise Exemption Scheme.

Tenders from the government: Get a break when applying for government contracts.

Taxation that is levied directly: Exemption from direct taxation.

Getting a bank loan: Bank mortgages are simple to obtain.

International issues: It is possible to participate in international business fairs.

States and Union Territories Benefits: States and union territories each have their own set of small-scale facilities and incentives.

Suggested Read- how to print udyam certificate

CONCLUSION:

I have discussed the udyam registration- process, benefits, and document requirements during the registration process. I hope you find this blog to be useful.

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