Udyam Registration
What Is Udyam Registration
Udyam Registration is a government registration process for Micro, Small, and Medium Enterprises (MSMEs) in India. It provides businesses with a unique identification number (Udyam Registration Number) and a certificate, making them eligible for various government benefits and subsidies.
Who Can Apply for Udyam Registration?
Any Micro, Small, or Medium Enterprise (MSME) involved in manufacturing, production, or service activities can apply. The classification is based on investment in plant & machinery and annual turnover:
| Category | Investment Limit | Turnover Limit |
|---|---|---|
| Micro Enterprise | Up to ₹1 crore | Up to ₹5 crore |
| Small Enterprise | Up to ₹10 crore | Up to ₹50 crore |
| Medium Enterprise | Up to ₹50 crore | Up to ₹250 crore |
Benefits of Udyam Registration
Easier Access to Loans:
Collateral-free loans under government schemes.
Lower interest rates on bank loans.
Government Subsidies & Schemes:
Subsidies on patent registration, ISO certification, and electricity bills.
Priority in government tenders.
Tax & Compliance Benefits:
Exemption from direct tax laws in certain cases.
Reduced compliance requirements.
Protection Against Delayed Payments:
MSME Samadhan portal helps recover payments from buyers.
Easier Business Expansion & Recognition:
Helps in applying for various licenses and approvals.
Documents Requried For Udyam Registration
Udyam Registration is a paperless process, and most details are verified automatically using Aadhaar and PAN. However, the following documents and details are required:
1. Basic Business Information
Aadhaar Card of the business owner (Mandatory for Proprietors, Directors, or Partners).
PAN Card of the business or owner.
2. Business Registration Details
Business Name & Type (Sole Proprietorship, Partnership, LLP, Private Limited, etc.).
Address & Contact Information (including email and mobile number).
3. Financial Information
Bank Account Details (Account Number & IFSC Code).
Investment in Plant & Machinery or Equipment (Approximate amount).
Annual Turnover Details (for MSME classification).
4. Other Optional Documents (if applicable)
GSTIN (if registered under GST).
Business Registration Certificate (if applicable) (e.g., Partnership Deed, Incorporation Certificate).
NIC Code (National Industrial Classification Code) for business activity.
Number of Employees working in the business.