What Is Udyam MSME Registration?

Posted by udyam registrationonline on August 26th, 2021

MSMEs are the heart and soul of India’s economy, creating millions of employment each year and making significant contributions to the country\'s growth and development.

The following are three inspirational facts regarding MSMEs in India:

• By 2023, MSMEs and small enterprises will employ 16 crore Indians.

• MSMEs are responsible for 30% of India\'s GDP.

• MSMEs account for 40% of all exports generated in India.

This clearly demonstrates that small companies and small enterprises distributed over India have immense potential and a bright, exciting future. If you own a small business but haven\'t yet registered, you\\'re missing out on valuable business and subsidy opportunities. Udyam registration in India is advantageous and necessary for a variety of legal and tax reasons.

MSME is defined as a small and medium-sized business. What exactly is MSME?

A Micro-Small and Medium Enterprises (MSME) is a small business that has been registered with the Ministry of Micro, Small, and Medium Enterprises (MMSME). It is divided into two categories: manufacturing businesses and service businesses.

Here are the definitions, as per the most recent government guidelines (May 2020):

• A microenterprise is a business with a capital investment of less than Rs 1 crore and a revenue of less than Rs 5 crore.

• A small business is defined as one having capital investment of less than Rs 10 crore and a revenue of less than Rs 50 crore.

• A medium-firm is defined as a business with a capital investment of less than Rs 20 crore and a revenue of less than Rs 100 crore.

How to do MSME Udyam Registration Online:

The MSME Udyam registration site allows you to complete the process online. In addition, the official website of udyam registration for msme provides additional information on the different programs for MSMEs in India, including credit and lending schemes, subsidy schemes, and so on.

An Aadhaar card, as well as the registered phone number, are now required to begin the MSME Udyam registration procedure.

List of other documents which are required for MSME Udyam registration:

• Documents of ownership or a lease arrangement

• Canceled cheque

• PAN Card (Personal Identification Number)

• Documents relating to a company\'s registration (sale/purchase bill)

• Documents such as the lease deed, property tax receipt, and others are required for self-owned properties.

• NOC from the owner, rent receipts, utility bills, and other documents are required for rented premises.

• Deed of Partnership (if exists)

• Association Memorandum (MoA)

• Association Articles (AoA)

• Copy of Purchased Machinery Licenses and Bills of Sale

Important Considerations for MSME Udyam Registration:

• On or after July 1, 2020, all existing companies registered under EM-II or UAM must re-register on the Udyam Registration Portal.

• The investment and turnover criterion will be used to determine whether a company is classified as a Micro, Small, or Medium Enterprise.

• The previous year\'s Income Tax Return will be used to determine the amount of investment in plant and machinery or equipment (which includes all tangible assets excluding land, buildings, furniture, and fixtures). In the event of a new business with no past ITR, the investment will be based on the promoter\'s self-declaration.

• Exports of products, services, or both are not included in the computation of turnover.

• All businesses that were registered before June 30, 2020, will be classed.

• An e-certificate named \"Udyam Registration Certificate\" will be given upon completion of registration.

Suggested Read- how to print udyam certificate

Benefits of MSME Udyam Registration in India:

1. Obtain Loans with No Collateral

2. Subsidy of 50% on Patent Registration

3. Interest on overdraft fees are waived

4. Eligibility for Industrial Promotion Subsidies

5. Payments that aren\'t made on time

6. Electricity Bill Subsidies

7. ISO Certification benefits

8. Additional Tax Benefits

9. Increased Chances of Getting Government Tenders

10. One-Time Settlement Fees