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A Step-By-Step Guide for Udyam Registration Certificate

By IIFL Home Loans | Published On Jan 11 2024 8:53 AM 1 min read 292 views 532 Likes
IIFL Home Loans

Micro, Small, and Medium Enterprises, what we popularly call MSMEs, are one of the most crucial sectors in India. As per the Ministry of Micro, Small and Medium Enterprises, the share of MSMEs in India’s GDP stood at 29.15% in the financial year 2021-22. In the case of the manufacturing sector, MSMEs share stood at 40.83% in the same year. Further, the share of exports by MSMEs was a staggering 45.56% of the total exports from India for the year 2023-24 (till September 2023). The statistics itself show the importance of MSMEs in India.

To assist MSMEs in conducting business and expanding operations, the government launched various schemes and initiatives for the MSMEs in India. To benefit from these incentives and schemes, you need to register yourself as an MSME enterprise. UDYAM registration online is the sole MSME registration certificate. 

Let’s check the eligibility criteria for MSME registration followed by a step-by-step guide on how to apply UDYAM registration certificate.

Eligibility Criteria for UDYAM Certificate in India


Here are the eligibility criteria to obtain an MSME UDYAM certificate in India:

Classification

Micro Enterprises

Small Enterprises

Medium Enterprises

Investment in Plant and Machinery

Not more than Rs. 1 crore

Not more than Rs. 10 crores

Not more than Rs. 50 crores

Annual Turnover

Not more than Rs. 5 crores

Not more than Rs. 50 crores

Not more than Rs. 250 crores

If you satisfy the above criteria, then you can register yourself as an MSME enterprise by applying for UDYAM registration online.

How to Register UDYAM Registration in India?

Here’s the step-by-step process to apply UDYAM registration online:

  1. Visit the UDYAM registration portal of the Ministry of Micro, Small and Medium Enterprises.
  2. Click on the tab ‘For New Entrepreneurs who are not Registered yet as MSME or those with EM-II’.
  3. Enter your Aadhaar number and name as per the Aadhaar card. In case you are a partnership firm, LLP, or company, then the Aadhaar number of any one of the directors or partners should be entered. In the case of Hindu Undivided Family (HUF), the Aadhaar number of Karta is required.
  4. Check on the declaration and click on ‘Validate & Generate OTP’. An OTP will be sent to your mobile number registered in your Aadhaar card.
  5. After Aadhaar validation, select the ‘type of organization’ from the dropdown menu i.e., a proprietorship concern, partnership firm, LLP, or company. Enter the PAN (of proprietorship, partnership firm, LLP, or company as the case may be) for verification.
  6. The UDYAM portal will automatically capture the name of the organization from PAN. Fill in the remaining details in the UDYAM registration form. These include location, office address, plant address, caste, type of business, business incorporation date, date of commencement of business, NIC code of your business, number of persons employed, investment in plant and machinery, bank details, etc.
  7. You can enter multiple activities if you are running more than one business simultaneously.
  8. You can also opt for automatic registrations on other government portals like TReDS, Government e-Marketplace, the B2B portal of the National Small Industries Corporation (NSIC), and the National Career Service alongside the UDYAM registration certificate. You just have to select the ‘Yes’ option to register on these portals.
  9. After filling in all the required details, click on ‘Submit and Get Final OTP’. Enter the OTP sent on your mobile number.
  10. After successful OTP verification, a ‘Thank You’ message will appear on your screen along with your UDYAM registration number. Copy this number and select the ‘Print UDYAM Certificate’ option.
  11. Paste the UDYAM registration number here and send OTP.
  12. Enter the OTP and the MSME UDYAM certificate will appear on your screen. Save both the normal UDYAM certificate and the UDYAM registration certificate with Annexure.

In a Nutshell

UDYAM certificate is the only MSME proof in India. If you wish to avail yourself of any benefits extended to MSMEs in India, it is mandatory to obtain UDYAM registration online. The process is really simple and if you have all the documents handy, then you can get your UDYAM registration promptly. It also allows you to obtain concessional bank loans with lower interests and relaxed eligibility. You just need to select the right lending institution. If you are searching for the best rates on MSME and business loans, visit IIFL Home Loans now!

FAQs

Q1: What are the benefits of UDYAM registration?

Ans: UDYAM registration carries a lot of benefits including but not limited to the following:

  • You can avail of benefits of various government schemes like Credit Linked Subsidy Scheme, Public Procurement Policy, Credit Guarantee, etc.
  • MSMEs are eligible for priority sector lending from banks. Therefore, UDYAM registration allows you to obtain business loans at affordable rates and relaxed criteria.
  • UDYAM registration allows you to register on the other government portals simultaneously without having to file a separate application.
  • It acts as a business proof in most banks and financial institutions.

Q2: How much time does it take to generate a UDYAM certificate?

Ans: If you have details handy, then you can generate a UDYAM registration certificate within a few minutes. The certificate gets generated as soon as you submit the application form.

Q3: I already have Udyog Aadhaar. Can I get a UDYAM certificate?

Ans: Yes. Udyog Aadhaar was replaced with the UDYAM certificate by the government. Therefore, if you already have a Udyog Aadhaar, you can directly convert it to UDYAM.

Q4: What are the fees to register for UDYAM?

Ans: There are no government fees to apply for an MSME UDYAM certificate.

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