What is Udyam Registration?

Udyam registration refers to the online registration process introduced by the Indian government for Micro, Small, and Medium Enterprises (MSMEs) to avail themselves of various benefits and schemes offered by the government. It replaced the earlier system of Udyog Aadhaar registration. Under Udyam registration, MSMEs can register themselves with relevant details such as business name, type, PAN, Aadhaar, location, and other information. This registration enables MSMEs to access subsidies, schemes, and support provided by the government for their growth and development. It also helps in obtaining loans, participating in government tenders, and availing various tax benefits and incentives.

Advantages of Udyam Registration

• 100% Autonomous Loans Without Collateral
  A 12-month moratorium or waiver on loan repayment is applicable.Completely protected by a government guarantee. There will be no payment for the assurance. Program offered through October 31, 2020.
• Funding of Rs. 50,000 crore for MSMEs in Equity
  The government will use the Fund of Funds program to invest in shares of MSMEs with growth potential and to offer equity capital.
• Assistance with Stock Exchange Listings
  The government would support MSMEs in growing their capacity and size, and it will motivate them to list on stock exchanges' main boards.
• Preference for Obtaining Contracts from the Government
  Using government tenders, the Indian government offers preference to purchasing from micro and small firms.
• 1% Bank Overdraft (OD) Interest Rate Exemption
  Organizations that are registered as MSME's are eligible for a 1% interest rate exemption on overdraft (OD).
• Lowering of Electricity Bills
  Organizations with MSME registration certificates can apply to the electrical department to receive a discount on their electricity bills.
• Protection against Buyers' Payment Delays
  The maximum payment period for purchases made from MSME suppliers is 45 days; if this time is exceeded, the buyer will be responsible for interest at three times the bank rate, which will be charged to the SME supplier.
• Special 50% Off on Government Trademark and Patent Fees
  Patent and trademark registration fees are 50% subsidized for businesses with an MSME certificate
• Quick Dispute Resolution
  Businesses who are having a payment problem may send it to the MSME Facilitation Council for arbitration and conciliation.

Required Documents for Udyam Registration

• LLP & Partnership Firm
  PAN card of Firm
  Address Proof of Firm
  Partnership deed/ LLP Agreement
  
• Proprietorship Firm
  Shop Act / Gumasta License
  PAN card of Proprietor
  Address proof of Firm
  
• Pvt. Ltd. /Public Ltd./OPC
  PAN card of Company
  Address Proof of Company
  MOA, AOA & Incorporation Certificate
  

Important information listed below is included in MSME registration

• For Services & Manufacturing Sectors:
• Micro: Less than Rs. 1 Crore in investment and less than Rs. 5 crore in turnover
• Small : Less than Rs. 10 crore in investment and less than Rs. 50 crore in turnover
• Large: Less than Rs. 50 crore in investment and less than Rs. 250 crore in turnover