In a rapidly evolving business landscape, the Indian government has taken significant steps to promote and support small and medium-sized enterprises (SMEs) through various schemes and initiatives. One such initiative is the Udyam Registration Certificate, formerly known as the Udyog Aadhaar. Udyam Registration is a unique identifier provided to eligible MSMEs (Micro, Small, and Medium Enterprises), facilitating several benefits like access to subsidies, easier credit availability, and protection under various government schemes.
In this comprehensive guide, we will walk you through the step-by-step process of obtaining an Udyam Registration Certificate, empowering you to leverage the advantages it offers and propel your business to new heights.
Step 1: Determine Eligibility
Before commencing the registration process, it is crucial to determine whether your enterprise falls under the eligible categories for Udyam Registration. The government has defined certain parameters based on investment in plant and machinery or equipment and annual turnover for enterprises to qualify as MSMEs. As of my last update in September 2021, the eligibility criteria were as follows:
Micro Enterprise: Investment in plant and machinery or equipment should not exceed INR 1 crore, and annual turnover should not exceed INR 5 crores.
Small Enterprise: Investment in plant and machinery or equipment should be more than INR 1 crore but not exceed INR 10 crores, and annual turnover should be more than INR 5 crores but not exceed INR 50 crores.
Medium Enterprise: Investment in plant and machinery or equipment should be more than INR 10 crore but not exceed INR 50 crores, and annual turnover should be more than INR 50 crores but not exceed INR 250 crores.
Step 2: Gather Necessary Information and Documents
Once you have determined your enterprise’s eligibility, gather the required information and documents to complete the registration process smoothly. The primary information and documents typically required include:
Aadhaar Card of the applicant: The applicant must provide their 12-digit Aadhaar number issued by the Unique Identification Authority of India (UIDAI).
PAN Card: The Permanent Account Number (PAN) of the enterprise or the applicant’s PAN in case of a proprietorship.
Business Address: The official address of the enterprise, along with the contact details.
Bank Account Details: The bank account number and the IFSC code of the bank branch where the enterprise’s account is operational.
Nature of Business: A brief description of the primary activities undertaken by the enterprise.
NIC Code: The National Industrial Classification (NIC) code(s) relevant to the products or services offered by the enterprise.
Step 3: Online Registration Process
As of September 2021, the Udyam Registration process was exclusively online, and you can follow these steps to complete the registration:
- Visit the Official Udyam Registration Portal: Go to the official Udyam Registration portal to initiate the registration process.
- Aadhaar Verification: Enter your 12-digit Aadhaar number and provide the name as mentioned on the Aadhaar card. An OTP (One-Time Password) will be sent to the registered mobile number linked to your Aadhaar. Verify the OTP to proceed.
- Personal Information: Fill in the required personal details of the applicant, such as name, gender, category, and physical disability status (if applicable).
- Enterprise Information: Enter the details of your enterprise, including name, type of organization (proprietorship, partnership, etc.), and official address.
- Business Activity Details: Provide a brief description of the enterprise’s primary business activities and select the appropriate NIC code(s) from the list provided.
- Investment and Turnover Details: Enter the investment amount in plant and machinery or equipment and the annual turnover of your enterprise as per the eligibility criteria.
- Bank Account Details: Input the bank account number and the IFSC code of the bank branch where your enterprise holds its account.
- Verification and Declaration: Review all the information provided for accuracy and completeness. Once satisfied, make a self-declaration stating that the information provided is true and correct to the best of your knowledge.
- Submit the Application: After making the declaration, submit the application. You will receive an acknowledgment containing the Udyam Registration Number (URN), which will be used for future reference.
Step 4: No Fee for Registration
As of my last update in September 2021, the registration process for obtaining an Udyam Registration Certificate was free of charge. Be cautious of any websites or agents claiming fees for the registration process, as the government does not charge any fee for Udyam Registration.
Step 5: Modification and Updation
It’s essential to keep your Udyam Registration Certificate up-to-date. In case of any changes to the enterprise’s information, such as the addition of new products or expansion of operations, you must update the details in the Udyam portal within the prescribed time.
See Also: Update Udyam Certificate
Obtaining an Udyam Registration Certificate can be a game-changer for your enterprise, providing access to numerous benefits and opportunities offered by the government to support MSMEs. By following the step-by-step guide outlined above, you can navigate through the registration process with ease and harness the advantages that come with being a registered MSME.
Remember, the government may introduce updates or changes to the registration process, eligibility criteria, or other aspects over time. It is essential to verify the latest information on the official Udyam Registration portal or seek professional advice to ensure compliance with the current regulations. Embrace this opportunity, register your enterprise, and set yourself on the path to growth and success.