Udyam Registration is here to take the position of Udyog Aadhaar registration for all small and medium firms in India. Our government created this platform for MSME in India with the goals of single-page registration and simplified processes in mind. Since 2015, Udyam Registration has provided businesses with e-certificates of recognition and twelve-digit unique identification numbers. As of 2018, over 48 lakh businesses had enrolled for Udyog Aadhaar. Proprietorships, HUFs, One Person Companies, Partnership Firms, LLPs, Private Limited Companies, Co-operative Societies, and other types of businesses are permitted to register.
MSME Udyam Registration comes with a slew of advantages that can help MSMEs flourish. Let’s have a look at some of the advantages of Udyam Registration.
Loans with no collateral: The Udyam certificate, which is accepted by the Government of India, the Ministry of Micro, Small, and Medium Enterprises, and the Small Industries Development Bank of India, permits loans without collateral under the Credit Guarantee Trust Fund Scheme. A collateral-free loan opens up a lot of doors for small business owners, which is one of the best Udyam perks for them.
Interest-free overdraft: MSMEs are also eligible for the benefit of the overdraft under the Credit Guarantee Trust Fund Scheme. Under the MSME Act, businesses that are classified as MSME/SSI are eligible for a 1% interest rate reduction on their overdraft. From one bank to the next, this service is different.
ISO Certification Fees: Reimbursement: The money spent on ISO certification can be claimed back by an Udyam registered MSME.
Concession on electricity: MSMEs that have enrolled on the Udyam portal may be eligible for a discount on their electricity expenses.
Tenders from the government are available: MSME owners who participate in a government procurement auction may be eligible for exemptions when submitting their applications.
Exemption from direct taxes: A Udyam Company might be exempt from all direct taxes or pay a tax on specified commodities if it is registered.
Clearance of funds: When dealing with an Udyam registered company, the buyer is required to pay for the goods or services within 15 days. If he waits more than 45 days to pay, the corporation is entitled to levy compound interest, which is three times the rate set by the RBI.
Fees for trademarks and patents are reduced by 50%: Patent registration can be subsidized by up to 50% for Udyam registered businesses. It makes far more sense to register before trademarking.
The Udyam platform is a step towards the Indian government’s vision of Atma nirbhar Bharat. In addition, it has introduced a number of initiatives and services aimed at boosting the MSME sector. It’s finally time to dive in and make the most of it. For registration services through the Udyam Registration portal, contact National Tenders right away.
All existing enterprises should register again on the Udyam Registration
MSMEs are classified according to their investment in plants and machinery. Regardless, this definitional approach has long been questioned because authorities did not have easy access to credible and detailed facts of investments. As a result, the Union Cabinet decided in February 2018 to shift the foundation to “yearly turnover,” which was more in line with the GST burden.
Following the Advisory Committee’s recommendations, the Central Government has announced specific requirements for classifying businesses as micro, small, and medium businesses, as well as the structure and mechanism for recording updates (Udyam Registration), which will take effect on July 1, 2020.
Anyone who wants to launch a micro, small, or medium business can complete a self-declaration Udyam Registration via the Udyam Registration platform. Registration for Udyam has no costs associated with it. In order to register for Udyam, the proprietor, partner, promoter, director, or Karta must have a valid aadhaar number.
FOR EXISTING BUSINESSES:
- On or after July 1, 2020, all current firms registered under EM–Part-II or UAM must re-register on the Udyam Registration portal.
- All businesses that were registered before June 30, 2020, will be classed in accordance with this notice.
- Existing businesses that were founded before June 30, 2020, will be valid until December 31, 2021.
- Any company that is already registered with another Ministry of Micro, Small, and Medium Enterprises agency is required to register with Udyam Registration as well.
How can you figure out how much money you’re going to spend on plants and machinery and how much money you’re going to make as a small business owner?
In the event of an existing business, the investment amount is determined using the information from the previous ITR. In the event of a new business, the promoter must self-declare the amount of investment to be considered.
Incorporation and exclusion from the investment amount calculation:
Assets in physical form
Excluding GST, the purchase price of used or new plant and machinery.
Construction and Land
Fittings and furnishings
Inclusion and exclusion from the Turnover calculation:
In the case of a new business, the turnover information must be taken from the previous ITR. In the event of a new business, the promoter must make a self-declaration in order to assess the investment amount.
Procedure for registering an existing business with UDYAM:
All businesses that were categorized using the old approach before June 30, 2020, will be reclassified. Existing business registered till March 30, 2020 – valid until December 31, 2021. Suspension of registration if you do not update before the deadline. The classification will be updated based on the most recent information. The registration procedure for UDYAM is as follows:
Step 1: go to the udyam registration portal.
Choose an option. “Those who have already registered for EM-II or UAM.”
Step 2: Enter your Udyog Aadhaar information and choose whether you want your OTP sent to your phone or to your registered email address.
Now, go to “Validate & Generate OTP” and input the OTP number that was sent to your phone or email address, then select Validate.
Your Udyog Aadhaar will be successfully validated.