Any business who need Indian government benefits needs to apply for online Udyam Registration in Udyam Registration Portal.
A company can be classified on the basis of various criteria. Such as a company where the investment in plant and machinery or equipment does not go above one crore rupees and turnover does not go above five crore rupees are called micro enterprises.
A firm where the investment in plant and machinery or equipment does not go above ten crore rupees and the turnover does not exceed fifty crore rupees are called small enterprises.
Whereas, a company where the investment in plant and machinery or equipment does not go above fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees are classified as medium enterprises.
Udyam (MSME) Registration is completely paperless and it does not include any offline agency. There is only a single Government portal for Udyam registration.
There is only a portal of Government of India and Government’s single window system for Udyam registration. Except this portal there is no other private online or offline system, service or agency or person who is authorized or entitled to do MSME registration or undertake any of the activity related to the process. The Government has organized a full system of facilitation for the registration process of Udyam.
An enterprise for the purpose of registration of the MSMEs is known as Udyam and its Registration Process is known as ‘Udyam Registration’.
A permanent registration number will be given after the Udyam registration. After completion of the process of registration, an online certificate is issued by the Government. From the web page of the Udyam registration portal the details about the companies can be accessed since the Udyam certificate has a dynamic QR code.
The Udyam registration does not need any renewal. They have a single windows system at the Champions Control Room that will help people in the process of registration. Hence they do not take any money from anyone for the registration. Renewal of registration is not required in the certificate.
The Udyam registration process is completely online, paperless and it is based on self-declaration. For registering an MSME, no documents or proofs are required to be uploaded. Only Aadhaar card number is required for Udyam registration.
The PAN and GST linked details on the investment as well as the turnover of the companies are taken automatically from the databases of the Government. Hence, it is compulsory to have a PAN and GST number by everyone. Their online system is completely integrated with Income Tax and GST IN numbers. Those companies have to re-register themselves for the Udyam registration who have EM-II or UAM registration or any other type of registration which is issued by any authority under the Ministry of MSME. Companies cannot file more than one Udyam registration. But, they can include any number of manufacturing or service activities and it can be specified or added in one registration.
Any person who wants to set up a micro, small or medium enterprise has to file Udyam Registration online in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates or proof.
After the registration, a company is assigned with a permanent identity number on the Udyam registration portal which is known as the Udyam registration number. Completing the registration process the enterprise will get an e-certificate which is called the Udyam registration certificate.
The form for the registration is available in the Udyam registration portal. The classification of the companies are based on the information collected for the income tax return or the goods and service tax return.
Udyam registration provides many benefits to the enterprises like easy bank loan without any collateral mortgage, special preference in procuring Government tenders, concession in electricity bills, 1% of exemption on interest rates on bank overdraft, tax rebates, fast resolution of disputes, protection against the delay in payment from buyers and special 50% discount on Government fees for trademark and patent.
The information regarding the turnover of the enterprise is linked to the GSTIN number and the last year filed GST return. The amount of turnover is checked by the portal of registration at the back end after the submission of the application. Also, the purchase value of plant and machinery or equipment is to be taken under account for the registration process.