As of my last update in January 2022, “Udyam Registration” refers to the online registration process for micro, small, and medium-sized enterprises (MSMEs) in India. This registration is mandatory for businesses seeking to avail of various benefits provided by the government, including subsidies, incentives, and access to credit facilities.
To register for Udyam, you can follow these steps:
- Visit the official website for Udyam Registration, which is managed by the Ministry of Micro, Small & Medium Enterprises, Government of India. The URL is usually https://www.udyog-aadhaars.co.in.
- Create an account on the portal by providing necessary details such as your name, email address, mobile number, etc.
- Once your account is created, log in to the portal using your credentials.
- Fill in the online registration form with details about your business, including its name, type, address, PAN (Permanent Account Number), Aadhaar number of the proprietor/partner/director, etc. Make sure to provide accurate information as per your business documents.
- Verify the details provided and submit the registration form.
- After submission, you will receive an acknowledgment or registration certificate containing your unique Udyam Registration Number (URN). This number serves as proof of your MSME registration.
- Keep the URN safe, as you may need it for availing of various government schemes and benefits for MSMEs.
It’s essential to keep in mind that the registration process may evolve over time, and there might be updates or changes to the procedure or requirements. Therefore, it’s advisable to visit the official Udyam Registration portal or consult with relevant authorities for the most up-to-date information and guidance on the registration process.
Cabinet had defined the MSME sector on the basis of these factors:
As of my last update in January 2022, the Union Cabinet of India had indeed redefined the Micro, Small, and Medium Enterprises (MSME) sector, primarily on the basis of two factors: investment in plant and machinery or equipment, and turnover.
Here are the details of the redefinition:
- 1.Micro Enterprises: Firms with investments up to Rs 1 crore and turnover up to Rs 5 crore were classified as micro-enterprises.
- 2.Small Enterprises: Entities with investments up to Rs 10 crore and turnover up to Rs 50 crore were classified as small enterprises.
- 3.Medium Enterprises: Companies with investments up to Rs 50 crore and turnover up to Rs 250 crore were classified as medium enterprises.
The revision aimed to promote ease of doing business, encourage growth and employment generation in the MSME sector, and facilitate their access to various schemes and incentives provided by the government.
Please note that for the most accurate and up-to-date information, it’s advisable to verify with the latest government notifications or news updates as policies might have changed since my last update.
Features of Udyam registration
Udyam Registration is a government registration process in India for small and medium-sized enterprises (SMEs), previously known as MSME (Micro, Small, and Medium Enterprises). Here are some of its features:
- Online Registration: Udyam registration is an online process facilitated through the official Udyam Registration Portal. This allows for easy accessibility and convenience for business owners.
- Streamlined Process: The registration process is relatively simple and streamlined, requiring minimal documentation and time.
- Free of Cost: Udyam registration is free of cost, eliminating any financial burden on small and medium-sized businesses.
- Self-Declaration: The registration process involves self-declaration of information such as investment in plant and machinery or equipment, turnover, etc., by the business owner.
- Permanent Registration: Once registered, the Udyam registration certificate is valid for a lifetime. There’s no need for renewal as was the case with the earlier system.
- Promotes Government Schemes: Registered Udyam enterprises can avail of various government schemes, incentives, subsidies, and support programs aimed at fostering the growth of small and medium-sized businesses.
- Facilitates Bank Loans: Udyam registration can help in obtaining easier access to credit from banks and financial institutions, as it serves as a recognition of the enterprise’s existence and operations.
- Enhanced Marketability: Udyam registration provides credibility to the business, enhancing its marketability and competitiveness, especially when dealing with government departments, tenders, and contracts.
- Encourages Formalization: By encouraging businesses to register under the Udyam scheme, the government aims to promote formalisation of the MSME sector, which in turn contributes to economic growth and development.
- Data Transparency: Udyam registration helps in maintaining a comprehensive database of MSMEs, which facilitates policymaking, planning, and implementation of various government initiatives targeted towards the sector.
These features collectively aim to provide a conducive environment for the growth and development of small and medium-sized enterprises in India.