Everything You Should Know About Online Udyam Registration

Many new entrepreneurs may wonder, “What is Udyam Registration?” when they establish their businesses. As it is a new initiative from the Ministry of MSME, most entrepreneurs aren’t aware of the Udyam registration and the documents they need to submit while registering on the portal. If you are one among them, you have arrived at the right place. We are here to walk you through everything you need to know about Udyam registration.

Udyam registration is also known as MSME registration and it was introduced to maximise benefits for micro, small and medium enterprises (MSMEs) in India. Udyam registration is a recognition certificate with a unique identification number which is provided to small, and medium enterprises.

Udyam portal has seen over 90 lakh registrations in just two years. According to a recent report from the Ministry of MSME, there are around 1 crore micro, small, and medium-sized businesses registered on the Udyam platform, employing 7.6 crore people, of which 1.7 crore are women. This is a clear pointer to how quickly the right people receive assistance from the Government at the right time.

Udyam or MSME registration doubles up as a business licence and carries a lot of other benefits than just being a mandatory requirement for MSMEs to avail of business loans. The Udyam registration process is completely digital, paperless and based completely on self-declaration. The Adhaar number was usually enough for registration, however, from 01-04-21 PAN and GST numbers have also become mandatory.

What are the Benefits of Udyam Registration?

Registering your business as an MSME (Micro, Small, and Medium Enterprise) can unlock a multitude of advantages that not only promote growth but also enhance your financial stability. Some compelling benefits of MSME registration include:

Access to formal credit: MSMEs with registration enjoy access to loans from formal lenders. Some lenders even provide loans without the burden of providing collateral, easing the financial constraints of expansion and development.
Excise Exemption: MSMEs can benefit from an excise exemption scheme, leading to reduced direct tax liabilities, which can significantly impact your bottom line.
Tailored Tax Breaks: Special tax breaks designed specifically for MSMEs, such as exemptions from the Minimum Alternate Tax (MAT), can substantially reduce your tax obligations.
Trademark Subsidy: Registration also opens doors to subsidies for trademark filing, safeguarding your intellectual property rights while saving costs.
ISO Certification Reimbursement: Reimbursement for ISO certification expenses helps in enhancing the credibility of your business, facilitating easier access to global markets.
Rebates and Concessions: Special rebates and concessions on patents and industrial setups lower the cost of innovation and expansion.
One-Time Settlement Fee: In cases of outstanding dues, MSMEs can benefit from a one-time settlement fee, providing a feasible solution for debt resolution.
Access to government contracts: The government prioritizes MSMEs, which can lead to having a competitive edge in accessing various government contracts.
Electricity Bill Concession: Registered MSMEs often qualify for electricity bill concessions, further reducing operational costs.
Credit Guarantee Programs: Government-backed credit guarantee programs, which provide a safety net for businesses, are extended to registered MSMEs, making it easier to secure financing.
International Trade Fairs: MSMEs are encouraged to participate in international trade fairs, fostering global exposure and potential partnerships.
Subsidy for Barcode Registration: Barcode registration subsidies streamline inventory management and product distribution, contributing to efficiency and competitiveness.

Eligibility Criteria for Udyam Registration

Let’s get things sorted out! As per the latest guideline from the Ministry of MSME, the benefits of registering with the Government are restricted to organisations that meet certain criteria. There are three basic factors that make up the primary requirements for Udyam registration. Whether an MSME qualifies for the benefits of Udyam registration depends on the type of business, annual turnover, and investment.

MSMEs must be micro, small, or medium-sized businesses.
The benefits change according to the annual turnover of the MSMEs. Micro businesses with an annual turnover of up to 5 crores, small businesses with sales between 5 and 75 crores, and medium businesses with sales up to 250 crores are all eligible for registration and benefits.
To be eligible for the benefits of Udyam registration, micro-enterprises must not have investments totalling more than Rs. 1 crore. Investments in small and medium-sized businesses cannot exceed 10 crores and 50 crores, respectively.

How to Update or Edit Udyam Certificate Information Online?

The first step is to visit the Udyam Registration website.
Then, select the Update Udyam Certificate tab.
Fill out the form with your information and your Udyam registration number.
Type the mobile number or email address where you want to receive the OTP (which was previously listed on the Udyam Registration form). The OTP will be sent to the email or mobile number on file.
Make the online application processing payment.
You will be contacted by their executives, and you will need to provide them access to the OTP in order to continue processing your application.
The Updated Udyam Certificate will be sent to the email address you provided.

Conclusion

Many small business entrepreneurs are setting up various MSMEs in India. Therefore, Udyam registration can be beneficial for these newly expanding businesses.

Udyam Registration is a government registration that comes with a certificate of recognition and a unique identifying number called the Udyam registration number.

The main goal of establishing this facility was to give the Government a means of helping MSMEs in India registered with MSMEs.

An e-certificate is given upon completion of the registration process. So, if your business hasn’t already registered with Udyam registration, do it right now to start enjoying its benefits.

As previously mentioned, MSMEs who register with Udyam are eligible for various perks. Availing of credit facilities or business loans has become a much-simplified process via the Udyam Registration number.

If you are a Udyam registered business owner, you can apply for unsecured loans from Kinara Capital within a short time period.

NBFCs like Kinara Capital are trying to bridge the gap for MSMEs in India to access formal credit and avail of fast business loans without any property collateral.

Kinara Capital’s digital process enables small business owners to check their eligibility in just 1 minute through the myKinara app.

MSME entrepreneurs can avail of a collateral-free business loan from ₹1 lakh – ₹30 lakhs with doorstep services in their preferred vernacular language. With Udyam registration and minimum documentation, an MSME business owner can go from decision to disbursement within 24 hours. Give a missed call to 080-68264454 to reach our in-house customer care team for more questions.