The Indian Ministry of MSME launched the new Udyam Scheme to address the pandemic crisis.
Udyam scheme is designed to help micro and small enterprises overcome financial difficulties during times of crisis.
Udyam Registration is a new and simplified method that aids your company in acquiring MSME classification.
It is only necessary if you want to participate in government programmes only toward the registered Micro, Small, and Medium Enterprises.
Udyam Registration Scheme, which was established by the Government of India on July 1, 2020, has always existed, but under a different name. Udyam Registration, formerly known as Udyog Aadhaar, assists companies in obtaining MSME (micro, small, or medium enterprises) registration.
Apart from numerous other benefits for companies, this is the most significant advantage of the Udyam Scheme.
But first, let us define the Udyam Scheme and then learn about its numerous benefits.
MSME Udyam Scheme
Micro, Medium, and Small Enterprises (MSME) generate roughly a third of India’s GDP while employing more than 110 million people.
However, most small firms are vulnerable to financial insecurity, especially during economic downturns when demand decreases and the business cycle slows.
This was obvious during the COVID-19 epidemic and in the aftermath.
The government has redesigned Udyog Aadhaar into the new Udyam registration scheme in order to integrate India’s MSMEs under one roof and secure them with different advantages.
If you own an proprietor business, private ltd company, or public ltd company, then you can apply for Udyam registration, a new online registration scheme.
Businesses are registered using the Ministry of MSME’s Udyam registration portal.
What is Udyam Scheme?
UDYAM scheme is an online registration process that allows units in the manufacturing and service sectors to be classified as Micro Small Medium Enterprises based on investment and turnover. The Udyam scheme connects income tax and GST returns in order to determine qualifying turnover and investment conditions.
Udyam registration is a straightforward, user-friendly process that allows MSMEs to sign up using an on-page registration form.
You can submit online at udyam registration portal, and upon completion, you will be given a permanent Udyam Registration Number as well as an e-certificate. This registration is open to any type of entity that falls into the MSME category.
During this pandemic the Indian Government released many benefits under the udyam schemes, for the welfare of the local businesses.
Udyam Scheme Eligibility
Each MSME category has a single eligibility criterion based on investment and turnover.
- Micro enterprises must have an investment of less than Rs 1 crore and a turnover of less than Rs 5 crores.
- Small enterprises are required to have an investment of less than Rs.10 crores and a turnover of less than Rs.50 crores.
- For medium enterprises, the investment has to be less than Rs.50 crores while the turnover must be below Rs.250 crores.
If your company meets any of the two requirements, it is automatically assigned to the higher category. However, your business will be put in a lower category only if it meets both the investment and turnover criteria.
Udyam Registration process
New entrepreneurs who have not yet been registered as an MSME or under the Entrepreneurs Memorandum II may apply for Udyam registration.
You can move or re-register under the Udyam registration if you were previously registered under the Udyog Aadhaar Memorandum, including assisted filing cases.
To register, go to the udyam registration site and fill out the registration form. It is a paperless system based on self-declaration.
This is an easy online registration process because it is solely dependent on the Aadhaar number.
A Registration Executive processes the online application. If the registration is successful, the registration certificate is delivered to the registered email address.
As per the new MSME Udyam’s registration scheme, the overall system is linked to the Income Tax and GSTIN systems.
GST registration and a PAN will be required for Udyam registration from April 1, 2021.
The Advantages of Registering with Udyam Scheme
- One of the most major benefits of registering is that you can now apply for bank loans without putting up any collateral.
- The government, the Small Industries Development Bank of India, and the Ministry of MSME’s Credit Guarantee Trust Fund Scheme all accept these loans.
- As part of the Credit Guarantee Trust Fund Scheme, Udyam registered MSMEs can also access overdraft facilities.
- They are also eligible for interest rate exemptions, the rates of which vary from bank to bank.
- It is simpler to apply for numerous government licences, certifications, and registrations in India with an Udyam certificate.
- These businesses are also eligible for credit-linked capital subsidies.
- Registered MSMEs are also eligible to participate in government bids and receive a waiver on the earnest money deposit.
- They are also given preference when it comes to participating in international trade shows and advertising or showcasing their products and services.
Furthermore, as a registered MSME, you are entitled for a variety of exemptions and incentives, including,
- ISO certification fees will be reimbursed.
- Electricity expenditure reduction
- Waiver of stamp duty and registration costs
- Exemptions from direct taxation
- Patent registration subsidy
- Subsidy for barcode registration
- Subsidy for trademark registration and industrial promotion
Thus, Manufacturing and service sector firms who file for Udyam Registration get access to a variety of subsidies, as well as eligibility for numerous Government schemes and perks, which in turn help the businesses expand.
However, in order to receive MSME Udyam certification, firms must first obtain Udyam Registration. Micro, Small and Medium enterprises that are registered as MSME can take advantage of the numerous benefits that Udyam Registration has to offer.
The Ministry of MSME has Champions Control Rooms established at various institutions and agencies to handle registration and follow-up with registered MSMEs.
In addition, the District Industries Centres will serve as a single point of contact for facilitation within their respective districts.
The Udyam scheme registration, which goes into force on July 1st, 2020, provides you with financial benefits and also propagating the mantras “Atmanirbhar Bharat” and “Vocal for Local,”
As a result, we encourage entrepreneurs, startups, and enterprises who have not yet registered under the new MSME “Udyam Scheme” should apply for udyam registration certificate.
FAQ on New Udyam Registration Scheme
It is not necessary to obtain Udyam Registration. However, once you are registered, you will be able to take advantage of any MSME-related advantages and schemes.
No, after March 31, 2021, ‘Udyog Aadhaar Registration’ is no longer valid.
Yes, new and existing firms are eligible to apply for Udyam Registration.
Yes, you can edit udyam registration certificate.
No, a company may only have one Udyam Registration.
Yes, you can cancel your udyam registration.
Check out these other important articles –
Benefits of Udyam Registration
Difference Between Udyog Aadhaar And Udyam
Cancellation of Udyam Registration
How to Check Udyam Registration Status
Forgot Udyam Registration Number
Udyam Registration Edit Online
Udyam Registration Certificate Download Online
Businesses always contact to us for help with the Udyam Registration procedure and information.
