Udyam Registration for new enterprises is one of the crucial steps for budding entrepreneurs who want to establish their businesses. Just keep apart the thrilling venture; a new enterprise comes with challenges and opportunities.

It doesn't matter if you're starting a medium, small, or micro enterprise; there is a need to have a clear understanding of Udyam registration. Well, we're going to walk you through the essentials of Udyam registration.

What is Udyam registration?

The Ministry of MSME wants to simplify the registration process for MSMEs, and that's why they came up with Udyam Registration. In 2020, it will have successfully replaced the earlier system of Udyog Aadhaar. However, the chief objective is to facilitate the ease of doing business and provide a range of benefits to all the registered enterprises.

Importance of Udyam Registration for New Enterprises

Udyam Registration acts as an existence proof of the enterprise and its classification as an MSME. We've mentioned some reasons why Udyam registration is crucial:

Ease of Obtaining Loans: Generally, financial institutions prefer registered MSMEs, and thus, they get easier access to loans at lower interest rates.
Reduction in the Cost of Patents and Trademarks: Get your enterprise registered with Udyam and enjoy substantial concessions on fees for trademarks and patents.
Access to Government Schemes and Subsidies: As a registered enterprise, you can avail of a range of incentives, subsidies, and schemes provided by the government.
Protection Against Delayed Payments: As per the MSME Development Act, there should be timely payments to MSMEs. Whenever you face any delay, you can instantly seek legal recourse.

Eligibility Criteria for Udyam Registration

If you want to be eligible for Udyam registration, your enterprise must fall within the mentioned criteria:

Micro Enterprises: Turnover up to ₹5 crores and investment up to ₹1 crore.
Small enterprises: turnover up to ₹50 crores, whereas investment up to ₹10 crores.
Medium Enterprises: Turnover up to ₹250 crores, while investment up to ₹50 crores.

Step-by-Step Process for Udyam Registration

Step 1: Visit the Official Udyam Registration Portal

Firstly, go and hit the official portal for Udyam registration. Keep in mind that there is only one authorized platform for the registration process.

Step 2: Aadhaar Number Entry

Further, there would be a need for the Aadhaar number of the authorized signatory or the entrepreneur. In the case of partnership firms, the managing partner’s Aadhaar is needed. When it comes to proprietorship firms, the Aadhaar of proprietors is a must. At last, the authorized signatory's Aadhaar should be provided for the company.

Step 3: Validate Aadhaar with the OTP

When you enter your Aadhaar number, your registered mobile number linked with Aadhaar will receive an OTP. You have to just enter the OTP for validating the Aadhaar.

Step 4: Fill in the details

After your Aadhaar validation, you'll be required to fill in the details, such as:

Name of the business or entrepreneur
Type of organization
business address
Number of employees
PAN number
Bank account details
Investment details (plant and machinery/equipment)
Major activity (manufacturing or service)
NIC Code

Step 5: Submit the application

Once you've filled out all your details, it's time to verify your information and submit the application. Just wait, and an acknowledgement with a unique URN will be generated.

Step 6: Udyam Registration Certificate

When you're done with verification, your Udyam registration certificate will be issued. Such a certificate acts like a digital document that doesn't require any kind of renewal.

Post-Registration Compliance

Now, you might have obtained Udyam registration, but you must comply with certain post-registration requirements. It comprises annual performance details and an update of your business information on the portal.

Conclusion

So, it can be said that securing Udyam registration is more than just a regulatory requirement for your enterprise. It's your turn to take advantage of such a streamlined system and let your business thrive in the market.