A Step-by-Step Guide to Register Your Business Under the New MSME Classification
Udyam Registration online Enrollment is another drive by the Service of Miniature, Little, and Medium Endeavors (MSME) of the Public authority of India. This new registration system was introduced in 2020 to replace the old MSME registration process. The Udyam Registration process is aimed at simplifying the process of registering small and medium-sized businesses in India. In this article, we will provide a step-by-step guide on how to register your business under the new MSME classification.
Step 1: Check Eligibility
Before starting the Udyam registration process, it is important to ensure that your business is eligible for registration. The new arrangement framework characterizes miniature, little, and medium-sized undertakings in view of their interest in plant and apparatus or hardware. The investment limit for each category is as follows:
Micro Enterprise: Investment up to Rs. 1 Crore
Small Enterprise: Investment up to Rs. 10 Crore
Medium Enterprise: Investment up to Rs. 50 Crore
In addition to the investment limit, the Udyam registration is also available for businesses that have an Aadhaar card. Therefore, if your business meets the investment criteria and you have an Aadhaar card, you are eligible for Udyam registration.
Step 2: Gather Required Information
To register your business under the Udyam scheme, you will need to provide some basic information about your business. The information required includes:
Business name and address
Type of organization (Proprietorship, Partnership, LLP, Private Limited, etc.)
Container (Super durable Record Number) or GST (Labor and products Expense) number
Date of incorporation
Number of employees
Bank account details
Industry sector
Aadhaar card details of the owner/promoter
Make sure you have all the necessary information at hand before starting the registration process.
Step 3: Visit the Udyam Registration Portal
Once you have the required information, you can visit the official Udyam Registration portal to begin the registration process. On the homepage, click on the “For New Entrepreneurs who are not registered yet as MSME” option.
Step 4: Fill in the Udyam Registration Form
On the next page, you will be directed to the Udyam Registration form. You will need to fill in all the required details, including your business name and address, type of organization, PAN or GST number, and Aadhaar card details.
Step 5: Verification of Aadhaar Details
Once you have filled in the Udyam Registration form, you will need to verify your Aadhaar details. An OTP will be sent to the registered mobile number linked to your Aadhaar card. Enter the OTP and click on the “Validate & Generate OTP” button.
Step 6: Final Submission
After successfully verifying your Aadhaar details, you will need to submit the Udyam Registration form. Once submitted, an Udyam Registration number will be generated, and a certificate of registration will be issued to you. You can download and print the certificate for future reference.
Step 7: Update Information
It is important to note that if there are any changes in your business information, such as investment or turnover, you will need to update the information on the Udyam Registration portal within 30 days of the change.
Benefits of MSME registration
MSME stands for Micro, Small and Medium Enterprises, and the registration of an enterprise as MSME provides several benefits, including:
- Access to Credit: MSME registration makes it easier for small businesses to obtain credit from banks, as the government provides financial support to such businesses.
- Subsidies: MSME registered businesses are eligible for subsidies on various expenses such as electricity bills, taxes, and more.
- Protection under MSMED Act: The MSMED Act provides protection to MSMEs against delayed payments from buyers, ensuring timely payments and cash flow.
- Access to Government Tenders: MSME registered businesses are eligible to participate in government tenders, which can provide a significant boost to their business.
- Access to Schemes: MSMEs are eligible for various schemes and programs launched by the government, such as Make in India, Startup India, and others, which can provide assistance in various aspects of business operations.
- Tax Benefits: MSME registered businesses enjoy various tax benefits such as lower rates of interest on loans, exemption from certain taxes, and more.
Overall, MSME registration can provide several benefits to small businesses, making it an important step for any entrepreneur looking to grow their business.
Suggested : online msme registration process in india
Conclusion
Udyam Registration is a simple and straightforward process that can be completed online. It is an important step for small and medium-sized businesses in India to be recognized and to avail various government schemes and benefits. By following the above steps, you can easily register your business under the new MSME classification and contribute to the growth of your business and the Indian economy.The Udyam registration process involves providing basic details about the business and its owner, and once the registration is complete, a certificate of registration is issued.
