Udyam Registration is another internet based approach for enrolling MSMEs. Preceding the execution of the Udyam enrollment, the Udyog Aadhar/MSME Enlistment was laid out to make it more straightforward for MSME to enlist without finishing up many structures to be qualified for government motivations under different projects.
Characteristics of Udyam Registration
The following are the most important characteristics:
- Registration for Udyam should be done in conjunction with your Aadhar card.
- With one Aadhar card of the company’s main representative, only one registration may be completed.
- Other associated activities/branches of the firm must be listed in the registration.
- By validating Aadhar/PAN details, the existing Udyog Aadhar can be renewed to a new Udyam registration.
- Following registration, the business will be assigned a unique Udyam Registration Number for identification, which can be utilised to take advantage of MSME initiatives.
Registration for Udyam requires the following documents.
- Aadhar card
- PAN Card
Instructions for completing the Udyam Registration Form
- Visit the Udyam online registration website.
- Applicant Name: Type the applicant’s name exactly as it appears on his or her Aadhar card.
- Phone Number: Please enter your ten-digit mobile phone number.
- Enter the applicant’s email address here. The certificate will be sent to this email address.
- Enter the applicant’s complete plant address, including state, district, and ZIP code.
- Select the applicant’s social category (ST/ SC) from the drop-down menu.
- Aadhaar Number: Enter the applicant’s Aadhaar number.
- PAN Card Number: Fill in the applicant’s PAN card information.
- Bank Account Number: Enter the applicant’s bank account number.
- IFSC Code: The bank account’s IFSC code must be provided by the applicant.
- Business Name: This is the name of the company.
- Date of Business Inception: Mention the date on which the company was founded.
- Select the organization’s kind from the drop-down menu.
- Select the applicant’s company’s primary business activity.
- Additional Business Information: Fill in the applicant’s business information.
- Terms & Conditions: Check this box if you agree to our company’s terms and conditions. Please keep in mind that your application will be processed only if you provide an OTP.
- If you want to submit your application, click the submit application button.
Note: If you have an old Udyog Aadhar or UAM, you can use it to apply for Udyam re-registration.
Benefits of Udyam Registration:
Credit with a reduced rate of interest:
There are a variety of programmes that provide cheap loans to the MSME sector for their capital needs. With the help of the Udyam certificate, the MSME can obtain loans from several banks at lower interest rates. Many borrowers-friendly initiatives have been created by banks to provide customers with loans for their daily monetary needs.
SIDBI is a government-owned financial institution dedicated to promoting, supporting, and expanding small businesses. The SIDBI bank restructures loans from primary lending institutions and makes them available to small businesses.
Deduction for taxes
Tax relief is available to industries that are registered via the Udyam registration system. Previously, the threshold level for tax exemption for MSMEs was lower, however the investment limit for MSMEs has been increased as a result of the amended definition of MSME. As a result, many MSMEs will be able to benefit from tax relief.
Corporate tax reduction
The corporate tax is a levy levied by the government on a company’s earnings. The corporate tax rate in the Manufacturing sector has been reduced to 15% for new businesses and to 22% for existing businesses. To stimulate investment in small size industries, the government has decreased the tax on them.
Avoiding a Tax Audit
If the company’s yearly turnover is greater than Rs. 1 crore, it must undergo a tax audit. According to the income tax law, a tax audit is required if the total sales of the firm reach Rs. 1 crore, and for other professions whose total revenue surpasses Rs. 50 lakhs in any given financial year. According to the Union Budget 2020, the turnover criteria for MSMEs has been raised from Rs. 1 crore to Rs. 5 crores.
Tariff for Electricity
Under government-sponsored programmes, MSMEs have received subsidies on their electricity bills. The Haryana government has also launched a Power Tariff Subsidy Scheme to help MSME businesses lower their electricity rates. This scheme is available to MSME enterprises based in Hyderabad.
Support for the Market
The government has also offered market support to small and medium-sized businesses. The government has introduced initiatives to provide financial assistance to MSMEs by reimbursing 75% of the fees for barcode registration for MSME businesses on a one-time basis.
Loans with No Collateral
Banks can provide collateral-free loans to enterprises that are registered under MSME. The government established the Credit Guarantee Fund for Micro and Small Enterprises Scheme to assist MSME companies with collateral-free financing.
GeM is available for use.
For public procurement of products and services, the government has launched GeM, an online marketplace. Companies registered under the MSME programme can sell and acquire goods and services on GeM. The GeM is a large marketplace for government agencies to buy and sell goods and services.
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The Udyam registration is a streamlined online approach for registering MSMEs. The Udyam registration portal gives users access to a variety of online benefits, such as online procurement of commodities through GeM, an online forum for resolving government concerns through e-samadhan, and so on. The government has launched a number of MSMEs-friendly initiatives that are easily accessible to MSMEs registered with Udyam.