Udyog Aadhar Registration is a scheme launched by the Ministry of Micro, Small and Medium Enterprises (MSME) in India, which aims to provide various benefits to small businesses. The Udyam registration scheme is designed to provide a single platform for the registration and tracking of MSMEs in the country. In this article, we will provide a complete detail about Udyam Registration, including its benefits, eligibility criteria, and the process to apply for it.
Benefits of Udyam Registration
Udyam registration provides several benefits to small businesses, including the following:
Access to Government Schemes: Businesses registered under Udyam registration can avail of various benefits provided by the government, including access to various schemes and subsidies.
Easy Access to Credit: Udyam registration makes it easier for small businesses to access credit from banks and other financial institutions.
Priority in Procurement: Businesses registered under Udyam registration get priority in procurement from government entities.
Income Tax Exemption: Small businesses registered under Udyam registration can avail of income tax exemption under the MSME Development Act.
Recognition: Udyam registration provides recognition to small businesses, which can help them in building their brand and reputation.
Eligibility Criteria for Udyam Registration
The eligibility criteria for Udyam registration are based on the investment in plant and machinery or equipment for manufacturing or service activities. The following are the investment limits for different categories of businesses:
Micro Enterprises: Businesses with an investment of up to Rs. 1 crore in plant and machinery or equipment are eligible for Udyam registration.
Small Enterprises: Businesses with an investment of up to Rs. 10 crore in plant and machinery or equipment are eligible for Udyam registration.
Medium Enterprises: Businesses with an investment of up to Rs. 50 crore in plant and machinery or equipment are eligible for Udyam registration.
The turnover limit for MSMEs has also been revised under the Udyam registration scheme. Businesses with turnover up to Rs. 250 crore are eligible for Udyam registration.
Process to Apply for Udyam Registration
The process to apply for Udyam registration is simple and can be completed online. The following are the steps involved in the Udyam registration process:
Step 1: Visit the Udyam registration portal (https://udyamregistration.co) and click on the “New Entrepreneurs” option.
Step 2: Enter the Aadhaar number and the name of the applicant, and click on the “Validate & Generate OTP” button.
Step 3: Enter the OTP received on the registered mobile number, and click on the “Verify OTP” button.
Step 4: Fill in the required details, including the name of the business, PAN card number, email address, and bank account details.
Step 5: Enter the details of the business activity, including the type of business, the address of the business, and the investment in plant and machinery or equipment.
Step 6: Upload the required documents, including the PAN card, Aadhaar card, and bank statement.
Step 7: Review the details and click on the “Submit” button.
After submitting the application, a registration certificate will be generated, which can be downloaded from the Udyam registration portal.
Can a business with multiple locations apply for Udyam registration?
Yes, a business with multiple locations can apply for Udyam registration. However, each location will have to be registered separately under the Udyam registration scheme. Each location will be considered a separate unit and will be issued a separate Udyam registration number.
It is important to note that each unit must meet the eligibility criteria for Udyam registration separately. The eligibility criteria for Udyam registration are based on the investment in plant and machinery or equipment for manufacturing or service activities. Therefore, each unit must meet the investment limit criteria to be eligible for Udyam registration.
Additionally, each unit must have a unique PAN card and bank account. The details of each unit, such as the name, location, and other relevant details, must be provided separately during the Udyam registration process.
In summary, a business with multiple locations can apply for Udyam registration, but each location will have to be registered separately and must meet the eligibility criteria for Udyam registration.
Is Udyam registration applicable for startups?
Yes, Udyam registration is applicable for startups as long as they meet the eligibility criteria for Micro, Small and Medium Enterprises (MSMEs). In fact, the government has recently revised the definition of MSMEs to make it more inclusive and to provide greater benefits to startups and other small businesses.
As per the revised definition, the investment limit for micro enterprises has been increased from Rs. 25 lakhs to Rs. 1 crore, for small enterprises from Rs. 5 crore to Rs. 10 crore, and for medium enterprises from Rs. 10 crore to Rs. 50 crore. Additionally, the turnover limit for MSMEs has been increased from Rs. 10 crore to Rs. 250 crore.
Startups that meet the investment limit criteria for micro or small enterprises can register themselves under Udyam registration and avail of various benefits provided by the government. These benefits include access to government schemes, subsidies, and other incentives, as well as priority in procurement from government entities.
In conclusion, Udyam registration is applicable for startups as long as they meet the eligibility criteria for MSMEs. The revised definition of MSMEs provides greater benefits to startups and other small businesses, making it easier for them to register under Udyam registration and avail of various benefits provided by the government.
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Conclusion
Udyam Registration is a scheme launched by the Ministry of Micro, Small and Medium Enterprises (MSME) in India, which aims to provide various benefits to small businesses. The Udyam registration scheme provides a single platform for the registration and tracking of MSMEs in the country. The eligibility criteria for Udyam registration are based on the investment in plant and machinery or equipment for manufacturing or service activities.
