Why Do You Need an MSME-Udyam Registration?
Did you know that with an Udyam Registration, you can get a concession on your power bills, avail overdraft facility with interest rate exemption and borrow funds without collateral?
In case you have registered in the past, do you know that your existing registration will be invalid from April 1, 2021?
Read further to learn about the revised MSME classification definition and the procedure to follow to acquire your updated Udyam Registration online for free.
What Is Udyam Registration for MSMEs?
Udyam Registration is the registration to classify any enterprise under the Micro, Small, or Medium category. You can apply for your Udyam registration online simply through self-declaration without submitting any documents.
An Udyam Registration Number (URN) and an e-certificate called Udyam Registration Certificate (URC) are issued upon the completion of the registration process.
Why Is Udyam Registration Important for MSMEs?
There are several benefits of Udyam registration for MSMEs. Many benefit schemes introduced by the government related to loans, subsidies, interest subvention, loan restructuring, cluster development, subordinated debt, venture capital funding, technology upgradation, solution for delayed payments, trade receivable e-discounting, etc., are available only to MSMEs with Udyam Registration.
How Can You Get Udyam Registration?
The process requires only the Aadhaar number of the following entities:
- proprietor in the case of a proprietorship firm,
- managing partners in the case of a partnership firm,
- karta in the case of a Hindu Undivided Family (HUF), and
- authorised signatory in the case of a -
- limited liability partnership
- cooperative society
You can get only one Udyam Registration for one enterprise. However, you may specify or add different activities such as manufacturing or services or both under the same registration.
Do You Need Udyam Registration if Your Business Is Already Registered as an MSME?
Prior to the change in definition of MSMEs, the registration was called as Udyog Aadhar Registration (UAM) and before that, it was called EM-Part-II.
All enterprises with UAM or EM-Part-II registrations were required to register again on the Udyam Registration portal on or after July 1, 2020.
The enterprises registered till June 30, 2020 will be reclassified in accordance with the changed definition of MSMEs.
The enterprises with existing Udyam Registration acquired prior to June 30, 2020 will continue to be valid only till March 31, 2021.
What Are the Steps for Udyam Registration?
You can get your Udyam Registration regardless of whether you have your corporate Permanent Account Number (PAN).
The procedure to get your Udyam Registration is available at www.udyamregistration.gov.in
Note: Udyam Registration is available based on self-declaration. Any intentional misrepresentation or attempt to suppress the self-declared facts and figures appearing in the Udyam Registration or while updating the registration will be liable to penalty as specified under Section 27 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006).
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