MSME Udyam Registration Process, Criteria, and Udyam Benefits :

We have a big topic to discuss today, here I will get you the complete details about the MSME registration or the Udyam registration and its complete process the MSME registration, the benefits of this registration, and the full criterias under MSME. 

About MSME :

MSME basically stands for “micro, small, and medium enterprises”. It is the highest governing body of the government of India, it has been founded under the MSME act 2006.

The main intentions of the MSME ministry are to formulate and administer the rules and regulations for the MSME. It is the regulating as well as the executive body of the GOI  which supports or helps the small-scale enterprises who intend to establish their business in the market. It makes it easy to register for the MSME.

Criterias for the MSME :

Earlier the classification of existing MSMEs was based on what the enterprises made their investment and the machinery or the equipment they required. so to avail of the benefits of MSME, enterprises have to manage the limit their investment to a certain limit, which has been shown below :

Existing MSME classification :

For the micro-enterprises: the investment range in manufacturing sectors should be below Rs 25 L and for the service sectors the investment range should not exceed Rs 10 L.

For Small enterprises: the investment range in manufacturing sectors should below Rs 5 Cr and for the service sectors the investment should below Rs 2 Cr.

For Medium enterprises: the investment range in manufacturing sectors should not be more than Rs 10 Cr.and for the service sectors the investment should not be more than Rs 5 5 Cr.

Reason for the revised criteria:

These lower limits hamper the enterprises to grow their business or expand their operations further to avail of the MSME benefits, apart from this it was the long-time demand for the MSME revision plan to get the government schemes. 

But now under the ABA( Atmanirbhar Bharat Abhiyan), the government of India revised the criterias to insert the composite criteria of investment and annual turnover. and another one is they remove the distinction between the Manufacturing and the Service sectors under the MSME ministry.

Now under the government of India, the MSME ministry will consider only the investment and the annual turnover for deciding the MSME.

Revised criterias for the  MSME ;

For Microenterprises: the investment annually is lower than Rs 1Cr and the annual turnover is less than Rs 5 Cr.

For Small enterprises: the annual investment is less than  Rs 10 Cr and the yearly turnover is less than Rs 50 Cr.

For the medium enterprise: the annual investment of the enterprise is less than Rs 50 Cr and the annual turnover should be less than Rs 250 Cr.

Knowing the above criterias for the MSME, now we will learn about the Udyam registration.

In the next paragraph, we will see what MSME registration is.

MSME Registration or the Udyam MSME registration :

Our government(Government of India ) has launched this Udyam registration or MSME registration for the small business in India whIch are running in the market without availing any types of benefits under the MSME.

many small scales business in India are engaged in several activities like manufacturing goods or providing services to consumers in the Indian market, so to support these enterprises, MSME registration or the Udyam registration has been introduced for the enterprises that encounter a lot of trouble managing their business by the government under various initiatives which launched by the MSME ministry. 

Now we have ideas about the Udyam registration or the MSME registration. Now we will know about the process of Udyam registration, before going ahead we discuss the required documents for the Udam registration.

Also, Read –  Udyam Registration benefits

Required documents for the Udyam registration :

For enterprises, the aadhar card and the PAN card (  in special cases ) are required to provide for the Udyam registration.  This is an online process, applicants need an online portal to register the enterprises, and no proof of documents is to be provided by the owners for the registration. And the other details like the GST and PAN linked details are to be taken by the online Udyam portal website automatically which is integrated with the government database. It is completely integrated with the Income-tax and GST IN systems.

It is worth noting that GST is not mandatory for the company owner but where it is necessary then the enterprises need to provide this for the Udyam registration.

As here it is to be noted that the enterprises who have this UAM registration or any registration which has been issued by the authority which comes under the MSME ministry, shall have to re-register in the Udyam registration portal.

and UAM-registered enterprises will have to migrate to udyam registration by 31/12/2021, otherwise, the old registration will be invalid and they will not be able to attain the benefits provided by the MSME.

Now the below paragraph deals with the process of Udyam registration online :

Stepwise process for Udyam registration :

• first, visit the Udyam registration portal website whose link  is given below:
• tap on the tab “ For new entrepreneurs”  
• here you have to fill in the Aadhar details and name as shown in the aadhar card and now tap on “ Validate and Generate OTP ”.
• you will get the OTP on the registered mobile no. , you select for validation. now your aadhar no will be verified successfully.
• here you have the option to select the type of organization and enter the PAN details and validate it.
•  After validation of PAN, you fill in the personal details here like a mob. no., email id, name of the enterprises, add. pf office etc.

After filling in the details you tap on the terms and conditions box and click on “ submit and get the final OTP ”.

Now you get the OTP you received on your registered mobile no. and finally you click on the “Final submit”, option.

After the final submission, you get a registration number and after the details are verified by the MSME ministry you will receive an E-registration document on your registered email id.

Now after finishing the process of registration I will tell you the benefits of the Udyam registration one by one in the paragraph below.

Benefits of Udyam registration under the MSME :

• registered enterprises will receive the benefits of government schemes like easy-to-take bank loans at very low rates of interest, loans without collateral, subsidies on various taxes, etc.
• financial support is provided by the government if they participate in foreign exposure to showcase the products.
• It provides the enterprises hassle-free in the process to open a current bank account in the name of enterprises.
• it will make enterprises eligible for government tenders, loans, etc.

The Final Thought

These are the key benefits that are available by the enterprise to support their business and ease of doing business.

So in the whole article, we knew about the MSME and the MSME Udyam registration along with the criterias for eligibility and the benefits of the Udyam registration. I am quite sure the applicants or the others will have this article beneficial to solve their queries.