Udyam : What is Udaym or MSME? Registration, Benefits and Process

What is MSME / Udyam registration?

Udyam is also called as MSME Registration. MSME stands for Micro, Small, and Medium Enterprises. It is small and medium-sized businesses (MSMEs) who register on the Udyam Registration portal. Udyam certificate issued by the Ministry of Micro, Small and Medium Enterprises (MSME). The UDYAM certificate is a 12 digit number in the format of UDYAM-XX-00-0000XXX

The Udyam registration portal allows businesses to register themselves as micro, small, or medium enterprises based on their investment in plant and machinery or equipment and their turnover. It's aims to promote ease of doing business, provide better access to government schemes and benefits, and facilitate the growth of MSMEs in India.

Udyam registration is the new process of registering business in India under the Ministry of MSME. Udyam has been started from 06th JULY, 2020.

Documents required for Udyam Registration

- MSME Udyam registration process is fully online, paper less, and based on self-declaration.

- No requirement of documents or proof for registering an MSME Udyam registration.

- Aadhaar Number will be enough for registration.

- PAN & GST linked details on investment and turnover of enterprises will be taken automatically from Government databases.

- PAN & GST number is mandatory from 01.04.2021.

How to Apply for Udyam / MSME Registration online?

MSME Registration is free, paperless and based on self - declaration

Step 1: Visit the official website Udyam Registration Portal
Step 2: Fill all the details on the Udyam Registration application Form.
Step 3: Make the online payment for your Udyam Application
Step 4: One of the registration executives will process your Udyam application
Step 5: In 1-2 working days you will receive your Udyam certificate in your registered email address

Web Online CA team will help to you fill the application form for Udyam / MSME registraion.  

You can direct apply online on Web Online CA portal for Udyam registration and get in touch with help line number +91 7413826826 in case any query.

Benefits of Udyam Registration

Subsidised rates of loan: Loan support to Micro, Small and Medium industry is promoted by the government through -distinctly prescribed norms. The registered entity would be able to get their loans passed at a lower rate of interest and with much ease because of the subsidized rates offered to MSME registrants.

Avail 50% rebate on TM application: Government fees on Trademark Application for entities such as Company, Partnership Firm and LLP are higher compared to individual and proprietorship firms. These entities may claim 50% rebate on the Government fees by submission of MSME registration certificate. Similarly, there is a rebate prescribed in Patent registration also.

Protection against Delayed payment of Buyers: MSME registered businesses enjoy protection against delayed payment of buyers. When the buyers have accepted the goods or services, they are liable to pay on time.

Credit Guarantee Scheme: This is also known as Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE). It is more supportive to small scale industries that provide the credit and income input from various sources to support industries which are under struggle.

How Many Types of MSMEs?

MSME registration is an important step for small businesses, as it provides a range of benefits and can open up new opportunities. It grants businesses legal recognition and access to government subsidies, loan schemes, and other financial assistance. Additionally, it ensures compliance with laws and regulations, helps attract new customers and vendors, and creates a professional image. Furthermore, MSME registration also offers tax benefits, including exemptions on certain taxes, and simplifies the payment process with banks and other financial institutions. Therefore, registering an MSME is a crucial step for small businesses, allowing them to take advantage of a range of benefits and foster their growth.