MSME Registration: Udyam Registration Process

Step by Step Udyam Registration Process

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MSMEs (Micro, Small and Medium Enterprises) play an integral role in India's socio-economic development. The growth of these industries ensures the economic enhancement of the country. Though MSME registration is not compulsory, obtaining it from the Udyam portal will help businesses reap benefits in terms of getting credit facilities, taxation and business set-up. 

 

MSME registration or Udyam registration will enable these enterprises to avail numerous incentives, subsidies, etc., extended by the Government. The sections below highlight all the particularities related to the MSME registration process. 

MSME Online Registration Process on Udyam

With robust digitisation in every sector, it has become easy for entrepreneurs to do MSME registration online. MSME registration can be done under two categories-

 

  1. Entrepreneurs who are not registered as MSME or with EM-I

  2. Entrepreneurs who have the UAM or are registered as EM-II

1. Registration Procedure for Entrepreneurs Who Are Not Registered As MSME

Here are the steps that new entrepreneurs must follow to get their business or enterprises registered as an MSME:

 

  • Step 1: Firstly, visit the Udyam portal and select ‘For New Entrepreneurs who are registered yet as MSME or those with EM-II’. 

  • Step 2: Now enter the Aadhaar card, name of entrepreneur and then click on ‘Validate and generate OTP’.

  • Step 3: Provide the OTP to get redirected to PAN verification page.

  • Step 4: Then mention further details like ‘Type of Organisation’, and PAN details and click on 'Validate PAN' tab. The Udyam portal will retrieve all  PAN details from the government database and authenticate the entrepreneur's PAN.

  • Step 5: On successfully verifying PAN, entrepreneurs will come across the Udyam registration form. Entrepreneurs must fill out the form with necessary personal information and details related to the enterprise. 

  • Step 6: Proceed to click on ‘Submit and Get Final OTP’. 

  • Step 7: Enter the OTP to complete the Udyam registration process. On successful registration, entrepreneurs will receive a reference number. 

2. Registration Procedure for Entrepreneurs Who Have UAM 

The MSME registration process for new entrepreneurs will change along with PAN card details and without the PAN card. Entrepreneurs having the UAM must follow the mentioned steps to register their enterprises.

 

  • Step 1: Go to the Udyam portal and select ‘For those having registration as UAM’ or ‘For those already having registration as UAM through Assisted filing’. 

  • Step 2: Provide the UAM and select ‘Validate and Generate OTP’.  

  • Step 3: Enter the OTP, and fill out the MSME registration form with prerequisite registration details. 

MSME registration will be completed by providing relevant information, and entrepreneurs can see the reference number on screen. 

How to Login on to Udyam Portal

Business owners registered as MSME must follow the steps mentioned to log in on the Udyam portal:

 

  • Step 1: Visit the website and provide a 19-digit Udyam registration number.

  • Step 2: Enter mobile number and click on ‘Validate and Generate OTP’.

  • Step 3: Enter OTP and select ‘Validate OTP and Login’ tab to access the portal.

How to Get an MSME Certificate Online

Business owners can easily obtain the MSME certificate online by following the mentioned steps:

 

  • Step 1: Go to the Udyam portal and click on the 'Print/Verify' tab. Then select the ‘Print Udyam Certificate’.

  • Step 2: On the redirected page, provide the Udyam registration and contact numbers. 

  • Step 3: Proceed to click on ‘Validate and Generate OTP’.

  • Step 4: Enter the OTP and click on 'Validate OTP and Print' tab to view the MSME registration certificate displayed on the screen. Business owners can download and print the MSME registration certificate. 

Details Needed in MSME Application Form

Here are the following details that entrepreneurs must mention in the MSME application form to register their enterprises on the Udyam portal:

 

  • Aadhaar number

  • Name and gender of business owner

  • Organisation type (Proprietorship, partnership firm, cooperative society, public or private limited company, Hindu undivided family, self-help group, society of trust etc.)

  • Caste category

  • Enterprise name

  • PAN card details

  • Address of Enterprise

  • Bank account number along with IFSC code

  • Number of employees

  • NIC code of primary activity

  • Annual turnover

  • Capital invested in machinery and plant

Eligibility Criteria for MSME Registration

Business owners must adhere to the following eligibility criteria to register their enterprises as an MSME. Under the ABA (Aatmanirbhar Bharat Abhiyan), the Indian Government has classified MSME sectors based on investment and annual turnover.

 

The following investment and annual turnover brackets must be considered to determine an MSME:

 

  • For a micro-enterprise, the maximum investment bracket must be Rs. 1 Crore, and maximum annual turnover must be Rs. 5 Crores.

  • A small enterprise must have a maximum investment and annual turnover bracket of Rs. 10 Crores and Rs. 50 Crores respectively.

  • A medium enterprise's maximum investment and annual turnover limit must be Rs. 50 Crores and Rs. 250 Crores respectively.

Documents Required for MSME Registration

The documents entrepreneurs must submit to register their business are the Aadhaar card and PAN card. As the PAN and GST are linked, the Udyam Registration Portal can obtain all information related to investments and annual turnover.

 

However, to be on the safer side, entrepreneurs can keep business PAN cards, bank details, bank statements, NOC, business establishment certificates, lease agreements etc. 

Benefits of MSME Registration

There are several benefits that a business owner can reap through MSME registration:

 

  • Businesses registered as MSMEs can obtain loans at a lower interest rate and get MSME loans easily. 

  • MSME Udyam registration will help entrepreneurs avail of tax benefits as per the MSME act.

  • Business owners can get a minimum alternate tax for up to 15 years instead of 10 years.

  • It becomes easy for business owners to get government tenders, licenses, registration and approvals.

  • Once the business is registered, business owners can get rebates and concessions on the cost of patenting or during a factory set-up. 

MSME Helpline Numbers

Here is the list of helpline numbers that entrepreneurs can reach out to resolve any of their queries:

 

  • For general queries: 011- 23063288

  • For administrative queries:  011- 23063800

  • For technical queries: 011- 23062354

In conclusion, as MSME sectors are significant contributor to India’s GDP, Government has been taking several initiatives to help these flourish. The MSME registration or Udyam registration will help all small businesses scale heights and sustain in this competitive era and get robust support from government.

FAQs on MSME Registration

  • ✔️Who can apply for MSME registration?

    Here are the following entities that can apply for MSME registration:

    • Individuals, MSMEs, Startups, business owners, entrepreneurs

    • Sole proprietorship

    • Partnership firms

    • Limited liability partnerships

    • Self-help groups

    • Trusts, cooperative societies etc.

  • ✔️How can I get a copy of my MSME certificate?

    A copy of the MSME certificate will be displayed on Udyam portal. Business owners have to download and take a printout of the copy.

  • ✔️What is the MSME certificate update fee?

    Business owners do not have to bear any cost for MSME registration or for obtaining MSME certificate.

  • ✔️When will the MSME certificate be issued?

    Entrepreneurs will also receive MSME Registration Certificate within 1 to 2 days of submitting an application for their business registrations.

  • ✔️What are the rejection chances of an online MSME application?

    Incomplete documentation, non-fulfilment of eligibility criteria, unpaid debts, inadequate cash flow, loan defaults, etc., can lead to the rejection of an online MSME application.

  • ✔️Can MSME borrowers get collateral-free loans from banks?

    Yes, MSME borrowers can easily avail of loans from banks without pledging any collateral. However, they must have a healthy credit scores and decent repayment history.

  • ✔️What is the difference between Udyam Registration and MSME/ Udyog Aadhaar?

    Udyam registration refers to the process of registering a business as an MSME that will make a business body functional under the Ministry of Micro, small and medium enterprises. MSME/ Udyog Aadhaar is a 12-digit number that is assigned MOMSME to a particular business.

  • ✔️Is the Aadhaar number mandatory for online MSME registration?

    Yes, business owners must provide their Aadhaar number while doing an online MSME registration.

  • ✔️Is a credit score or CIBIL score necessary for MSME borrowers?

    It is not necessary for MSME borrowers to have healthy CIBIL score. However, keeping a good credit score will give them an upper hand in receiving low-interest loans.

  • ✔️Do I get a hard copy or a physical copy of the MSME certificate?

    Business owners will get a soft copy of the MSME certificate if they opt for an online MSME registration.