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MSME / UDYAM Registration​

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UDYAM REGISTRATION Registration

Registration of Existing Enterprises ?

  1. All existing enterprises registered under EM-part II or UAM shall register again on the Udyam registration portal on or after the 1st day of july 2020
  2. All enterprises registered till 30th june 2020 shall be re classified in accordance with this notification.
  3. The existing enterprises registered prior to 30th june 2020, shall continue to be valid only for a period upto the 31st day of march 2021.
  4. An enterprise registered with any other organization under the Ministry of Micro, Small and medium enterprises shall register itself under Udyam Registration
    The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is given below.

Micro units
MSMEs will now be called Micro units if they have investments upto Rs 1 crore and turnover of less than Rs 5 crore. The definition earlier was on investment criteria of up to Rs 10 lakh for Service MSMEs earlier and Rs 25 lakh or manufacturing.

Small units
For an MSME to be defined as a Small unit, its investment limit has been raised from Rs 5 crore to Rs 10 crore with a turnover of less than 50 crore. This applies to all MSMEs inc ..

Medium units
Enterprises with investments up to Rs 20 crore with a turnover of less than Rs 100 crore will now be called Medium units. Earlier, the investment limit for Medium units was up to Rs 10 crore and Service enterprises up to Rs 5 crore.

Benefits of UDYAM Registeration

  • Government tenders.
  • Government tenders.
  • Import subsidy .
  • Ease in getting Approvals & Registrations.
  • Lower interest rates.
  • Tariff & Non-tariff tax subsidies.
  • Direct tax exemptions.
  • Benefits associated with government schemes.
  • credit availability from the government

Documents Required For UDYAM Registration

The entity has to submit documents like business address proof, copies of purchase and sale bill, and licenses from regulatory bodies.

  • Business Address Proof
  • Copies of Sale Bill and Purchase Bill
  • Partnership Deed/ MoA and AoA
  • Copy of Licenses and Bills of Machinery Purchased

Frequently Asked Questions On MSME Registration

Is Aadhaar card compulsory?

A. Yes. For registration under the UDYAM REGISTRATION, aadhaar card is compulsory. In case an applicant is other than the proprietor, the Aadhar card of the partner and the director will be required.

Can existing and new businesses both apply?

Yes, an existing and new business can apply for Udyam registration. Provided the existing unit is functioning and meets the threshold limits for registration.

What is the validity of the certificate?

There is no expiry of the Udyam Registration Certificate. As long as the entity is ethical and financially healthy there will be no expiry of the certificate.

Can trading companies register under Udyam Registration?

No. Udyam Registration covers only manufacturing and service industries. Trading companies are not covered by the scheme. Udyam Registration is to support startups with subsidies and benefits, trading companies are just like middlemen, a link between manufacturer and customer. Hence not covered under the scheme.

Do I need multiple registrations for manufacturing plants in different cities?

No. The Udyam Registration certificate is for a single entity irrespective of multiple branches or plants. However, information about multiple branches or plants must be furnished.

What are the activities specifically excluded from coverage under Udyam Registration?

Ministry of Micro, Small and Medium Enterprises (MSME) has clarified as per notification S.O 2576 (E) dated 18.09.2015 and subsequent notification no S.O 85(E) dated 10.1.2017, activities that would be specifically not included in the manufacturing or production of commodities or rendering of services as per Section 7 of the said Act.

  1. Forest and Logging
  2. Fishing and aquaculture
  3. Wholesale, retail trade and repair of motor vehicle and motorcycles
  4. Wholesale trade except for motor vehicles and motorcycles.
  5. Retail Trade Except of Motor Vehicles and motor cycles
  6. Activities of households as employees for domestic personnel
  7. Undifferentiated goods and services producing activities of private households for own
  8. Activities of extraterritorial organisations and bodies
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