MSME Aadhar Udyog Registration in India | Seedling Associates

Author : Seedlingassociates Advocates | Published On : 10 Jul 2024

MSME/UDHYOG Aadhar Registration
(Price Start at Rs 3499 /-)

Micro, Small, and Medium Enterprises (MSME) registration, now known as Udyam registration in India, is a government initiative to promote and support small businesses. It provides enterprises with official recognition and various benefits, such as easier access to credit, subsidies, and preferential treatment in government procurement. To register under Udyam, businesses need to meet certain criteria based on investment and turnover. The online registration process involves submitting relevant documents and information through the Udyam Registration portal. This streamlined registration aims to simplify compliance and enhance the competitiveness of MSMEs, fostering economic growth and job creation in the country.

Benefits of MSME Registration:

  • Financial Support: Access to credit at lower interest rates, with various government schemes providing financial assistance to MSMEs.
  • Subsidies: Eligibility for subsidies on various schemes and programs, reducing operational costs for the registered businesses.
  • Priority Sector Lending: Priority consideration for loans and support from financial institutions, facilitating easier access to funds.
  • Government Tenders: Preferential treatment in government procurement processes, enhancing business opportunities for MSMEs.
  • Market Access: Increased visibility and market opportunities due to official recognition, potentially leading to expanded customer bases.
  • Technology Upgradation: Incentives for adopting new technologies and upgrading processes to improve efficiency and competitiveness.
  • Statutory Benefits: Enjoyment of various statutory benefits, including exemption under Direct Tax Laws and Credit Linked Capital Subsidy Scheme.
  • Ease of Obtaining Licenses and Permits: Simplified processes for obtaining licenses and permits, reducing bureaucratic hurdles for MSMEs.
  • Protection against Delayed Payments: Timely resolution and compensation for delayed payments through the Micro and Small Enterprises Facilitation Council.
  • Skill Development: Access to government-sponsored skill development programs for employees, enhancing the overall skillset of the workforce.

Eligibility Criteria for MSME Registration:

Here are the key eligibility criteria for MSME/Udyam registration in India:

 

  • Entity must be engaged in manufacturing or production of goods, or providing services.
  • Annual turnover should be less than:
  1. Rs 250 crore for medium enterprises
  2. Rs 100 crore for small enterprises 
  3. Rs 50 crore for micro enterprises
  • Investment in plant and machinery or equipment should be less than: 
  1. Rs 50 crore for medium enterprises
  2. Rs 20 crore for small enterprises
  3. Rs 10 crore for micro enterprises 
  • Entity must have Udyog Aadhar Number (UAN) or GSTN to apply online.
  • Entity should be registered in India under the Companies Act or LLP Act or any other law.
  • Entity must not be formed by splitting up or reconstruction of a business already in existence.

 

The key criteria are focused around turnover thresholds, investment thresholds in plant and machinery, and nature of business operations. All criteria have to be met by the enterprise to be eligible for Udyam registration.

Documents required for MSME Registration:

Here are the key documents required for MSME/Udyam registration in India:

  • Aadhaar card of the proprietor/owner/CEO/Partners/Directors.
  • Business proof like Certificate of Incorporation/Partnership Deed/Registered Office Documents.
  • Bank statements of business/Personal bank account of directors/partners .
  • GST registration documents (if available).
  • Udyog Aadhaar registration documents (if available).
  • Last Income Tax Return (ITR) of the business (if available).
  • Caste certificate (if applying for support benefits under SC/ST categories).
  • Import/Exporter certificate (if applying as an exporter/importer).
  • Proof of investment in plant and machinery or equipment (bills/invoices).
  • Details of business premises like ownership or rental documents.
  • Photos of business activity/business premises.
  • Cancelled cheque.
  • Rent agreement and NOC from landlord (in case of rented property).

 

Essentially, identity proof, address proof, business documents linking owners/partners/directors, proof of bank account, proof of investment in business, and tax documents need to be provided in most cases. The submission is completely online.

Procedure to Register MSME/Udyog Adhaar registration

 

  • Visit Udyam Registration Portal: Go to the official Udyam Registration portal (https://udyamregistration.gov.in/) to initiate the registration process.
  • Aadhaar Verification: Provide the Aadhaar number of the business owner for verification and authentication purposes. Ensure the information matches the Aadhaar details.
  • Business Details Submission: Enter essential business details, including the name, type, PAN, and location. Specify the date of commencement and previous registration details, if any.
  • Investment and Turnover Information: Furnish the investment made in plant and machinery or equipment, and the turnover of the business during the previous financial year.
  • Category Selection: Choose the appropriate category of enterprise—Micro, Small, or Medium—based on the investment and turnover criteria.
  • Bank Details Input: Provide the bank account details of the business for transactions and benefits associated with MSME registration.
  • Document Upload: Upload the necessary documents, such as PAN card, Aadhaar card, and business registration proof, in the prescribed format.
  • Submit and Obtain Registration Certificate: Review the entered information, make corrections if necessary, and submit the application. Once approved, obtain the Udyam Registration certificate instantly.

Time Required for MSME Registration:

The time required for MSME registration, also known as Udyog Aadhaar registration in India, typically takes a few minutes to complete online. The process involves providing basic business information and relevant documentation through the official Udyog Aadhaar portal. Once the application is submitted, the registration certificate is usually issued instantly, making the overall registration process efficient and swift for entrepreneurs and small businesses. 

How seedling can help you with MSME registration

Seedling is a leading management consultancy firm providing end-to-end support for MSME registration and compliance services. Our experienced team of consultants includes chartered accountants, company secretaries and legal professionals with expert knowledge across all MSME laws and guidelines. With years of experience and many successful MSME registrations, our dedicated consultants hand-hold clients through the entire registration journey - from checking eligibility, document preparation, online form filling to issuance of final certificate. What sets us apart is our relationship management focus and technology expertise that makes the process smooth, efficient and stress-free for our clients. We assist at every step to ensure 100% accuracy in application and approval success

Most common question about our services

Who can avail your services for MSME registration?

Any new or existing micro, small or medium enterprise with operations in manufacturing or services sectors can utilize our registration services.


What is the validity of the registration certificate?

The Udyam registration certificate issued is valid for lifetime. It has to be updated in case of changes in activity or investment/turnover thresholds.


Are there any additional costs or hidden charges?
No hidden charges. Our quotes are fixed-cost packages covering end-to-end registration formalities without any hidden fees. Outstation travel/lodging extra if required.