Udyam Registration - an Overview

MSME, i.e. Micro, Small and Medium Enterprises, is considered as the backbone of the Indian Economy. The MSME sector encompasses a massive number of small scale industries under its belt, making it one of the prominent GDP contributors of India. MSME is a government-backed initiative that seeks to boost the growth of small scale industries operating in the organized and unorganized sectors.

Small scale businesses play a vital role in improving the economy of any country. To encourage new and existing business, the government of India has launched many schemes to help small and medium scale businesses to sustain and grow. To avail all these beneficial schemes, you need to get your Udyam registration done. Udyam registration is also known as Udyog Aadhaar or SSI registration. Barrister Babu can complete the process in just a few steps.

Benefits of MSME/Udyam Registration

The following are the major benefits given to registered MSMEs under the Micro, Small & Medium Enterprises Development (MSMED) Act:

• You can get collateral-free loans from banks under the credit guarantee fund scheme for micro and small enterprises (CGS).
• Some items have been earmarked to be manufactured only by small scale enterprises.
• Once you get the MSME certificate for your microenterprise, it gets much easier to get licenses, registrations, and approvals for the same. Being able to show your MSME certificate while making these applications will speed up the process.
• You get special consideration for participating in international trade fairs, exhibitions, and buyer-seller meets. You can also hold international seminars and conferences which are in the interest of MSME sector.
• When you have MSME registration, you get many things done at a subsidised price: barcode registration, NSIC performance and credit ratings, industrial promotion subsidy (IPS), ISO certification, electricity bill, and patent registration can be done easily.
• The interest rate charged by banks for MSME registered enterprises is lower than the normal interest rate.
• To promote technological growth among the micro industries Credit Linked Capital Subsidy Scheme (CLCSS) scheme was introduced that provides 15% capital subsidy up to 15 lakhs for the purchase of plant and machinery.
• While applying for a government tender, the ministry of micro, small and medium enterprises gives the following benefits to a microenterprise:
  • Tender sets can be issued free of cost
  • They are exempted from paying earnest money
  • Security deposit is waived up to a certain monetary limit.

There are many other benefits under the Act and benefits are introduced through annual budgets as well.

Types of MSME Registrations

1. Provisional MSME Registration

This is apt for entities which are yet to begin functioning. With provisional registration the MSME can:

• Obtain facilities for accommodation, land, etc.
• Obtain important approvals and NOCs.
• Obtain clearances from regulatory bodies such as Pollution Control Board and Labour Regulations.
• Obtain term loans and working capital from financial institutions and banks under priority sector lending.

A PRC (provisional registration certificate) is allotted to new enterprises without any field enquiry and is valid for 5 years.

2. Permanent MSME Registration

It is given to industrial units that are already functioning. All the benefits available to MSMEs can be availed by them. The following conditions have to be met for getting a permanent registration:

• The unit has obtained statutory and administrative clearances as required.
• The unit does not violate any regulation or restriction.
• The value of plant and machinery in the unit does not exceed the prescribed limits.
• There should be proof that the enterprise is not owned, a subsidiary of or controlled by another industry.

Documents Required for Udyam Registration (MSME) Certificate:

• Aadhaar card
• A bank passbook with a picture
• Election ID card
• Passport
• PAN Card
• A driving permit
• A government-issued ID card for employees (if any)
• Certificate of caste (for SC, ST, and OBC category)
• Owner's name and Aadhar number for the business
• Name of the business
• Information about the initial registration procedure for the business
• Documentation confirming the kind of the business
• Documents pertaining to the bank account information and mailing address.
• Code for National Industrial Classification.

Udyam Registration Eligibility

The entities that fall under the following three categories can apply for MSME registration.

Micro Enterprises

Where the investment in plant and machinery is not more than ₹1 crore and the annual turnover is not more than ₹5 crores.

Small Enterprises

Where the investment in plant and machinery is not more than ₹10 crores and the annual turnover is not more than ₹50 crores.

Medium Enterprises

Where the investment in plant and machinery is not more than ₹50 crores and the annual turnover is not more than ₹250 crores.

Who can Apply for Udyam Registration?

Applying for MSME registration is open to all manufacturing, service, wholesale, and retail businesses that meet the updated MSME classification criteria for annual sales and investment. Thus, an entity's yearly sales and investment determine whether it is eligible for MSME registration. The following organisations are qualified to register as MSMEs:

• Individuals, small businesses, and business owners.
• Both public and private limited businesses.
• Limited Liability Partnerships (LLPs) owned by a single person.
• SHGs (Self Help Groups).
• Cooperative organisations.
• Trusts.

Udyam Registration Process

Barrister Babu uses an easy three step process to complete the Udyam registration process. However the complete process is much more complex and time consuming.

Udyam registration official website.

Go to https://udyamregistration.gov.in/Udyam_Login.aspx, the Udyog Aadhar's official website.

Provide Personal Information

Type in your personal data.

• Your name and 12-digit Aadhar number must be entered first
• Choose ‘Validate & Generate OTP’
• The OTP number will then be sent to your registered number
• Aadhar card is a must for getting udyog Aadhar.

Business information

Complete the information about the company or companies you wish to register. You must fill in the name of the company. If you have more than two businesses, you should enter the names of the businesses under Enterprise 1 and Enterprise 2.

Communication details

The postal address, registered email address, registration mobile number, and other details about the company or companies must all be entered in this section.

Additional details

Fill in the remaining information needed. In this section, you must include the date the business was founded as well as any other information previously related to the company's registration.

Registration Proof

Information about registration through the SSI, EM1, or EM2 processes is included in this category

Provide the bank information

For this section, you must provide the bank information for the company, which includes the account number, bank name and IFSC code, and branch name.

Classification of the Company

Now specify the company's primary line of business, i.e., whether it engages in manufacturing or delivering services. It is important to mention the main business.

Services

If your business deals with different types of prospects, you must pick the one where it has a strong presence. For instance, you would choose manufacturing as your core business if the company's core processes consisted of 70% production and 30% service.

Capital

Provide information regarding the total number of employees in your company as well as the total investment in lakhs. When registering under this category, if you own multiple businesses, you will need to complete the necessary data for each business separately.

Location of the firm

Select the industry district center and finally accept the declaration from the list provided on the website. Then, click the submit button after accepting the declaration. You will receive an acknowledgement number following the selection.

Why Connect with Barrister Babu Support for registration and licensing services?

Barrister Babu is one of the most trustable platforms for government registration and licensing services. We ensure that our clients get top of the line services regardless of the quantum of compliances and rules set out under different Acts. 

Top reasons for choosing Barrister Babu services

• Presence of highly experienced professional and field experts.
• Ability to simplify complicated pre-registration requirement for the sake of client’s understanding.
• Proven track record of rendering flawless services to different clients. 
• Ensure on-time delivery of government license and registration.