Udyam Registration

What is the meaning of Udyam Registration?

Udyam Registration in India, also known as MSME Registration or SSI Registration, is a certificate issued under the MSME Act of 2006 to micro, small, and medium-sized enterprises in India. In India, Udyam registration was previously known as MSME registration. The following are the major objectives of Micro, Small, and Medium Enterprises in relation to Udyam registration:

To allow large-scale Micro, Small, and Medium Enterprises to effectively combat widespread unemployment and poverty; to extend the advantages of different government programmes to SSI units in one place;

To protect the SSI against financial exploitation at the hands of major businesses

Other than the Digital Signature Certificate, this USB token is secured in such a way that it cannot store any other documents.

Udyam Registration Eligibility

In India, who is qualified for Udyam registration?

In India, not all companies are required to get Udyam registration. The entities listed below are eligible for Udyam registration if they are categorised as micro, small, or medium businesses based on their investment in plant and machinery.

Developing a Business

Anyone planning to start a micro, small, or medium business in India should apply for an Udyam registration.

The permanent identifying number known as the Udyam Registration Number is issued to a company known as Udyam once the registration is completed.

After the registration procedure is completed, an Udyam Registration Certificate is provided.

All units with the same Goods and Service Tax Identification Number ( GSTIN) listed against the same Permanent Account Number ( PAN) should be treated as one enterprise, and the turnover and investment figures for all entities should be viewed together, with only the aggregate values being used to determine whether the entity is classified as a micro, small, or medium enterprise.

Calculation of plant and machinery investment

The computation of investment in plant, machinery, or equipment must be connected to the previous year’s Income Tax Return submitted under the Income Tax Act of 1961.

If a new business does not have an ITR filing, the investment will be based on the promoter’s self-declaration, and this relaxation will expire after the 31st March of the financial year in which the first ITR is filed.

The term “plant and machinery or equipment” must have the same meaning as “plant and machinery” in the Income Tax Rules, 1962, which are enacted under the Income Tax Act, 1961, and shall refer to tangible assets other than land, buildings, furniture, and fittings.

If a company is freshly created without an ITR, the invoice value of a plant, machinery, or equipment should be examined, whether it is acquired first hand or second hand, and the GST should be deducted on a self-disclosure basis.

The cost of certain items listed in explanation I to subsection 7 of the Act should be omitted from the calculation of the amount of plant and machinery investment.

Turnover calculation

When measuring the turnover of a business, whether it is micro, small, or big, exports of products or services, or both, should be eliminated.

The Income Tax Act or the CGST and the GSTIN should be connected to information about an enterprise’s turnover and export turnover.

For the period up to and including March 31, 2021, the turnover relevant to the figures of such a company that does not have a PAN will be examined on a self-declaration basis. The PAN and GSTIN will be required.

For categorization, we used a combination of investment and turnover factors.

The categorization of a business as micro, small, or medium should be based on a combination of investment and turnover criteria.

If an enterprise exceeds the ceiling limits for the current category in either of the two criteria of investment or turnover, it will cease to exist in that category and be moved to the next higher category; however, no enterprise should be moved to the lower category unless it falls below the ceiling limits for the current category in both investment and turnover.

All units with a valid GSTIN that are listed under the same PAN are to be treated as a single entity, and the turnover and investment figures of these entities should be viewed together, with only the aggregate values being used to determine whether the entity is classified as a micro, small, or medium enterprise.

What information is needed for Udyam registration?

Aadhar Number is a unique identification number assigned to each individual (Mandatory)

The entrepreneur’s name as it appears on the Aadhar Card (Should be linked with the mobile number)

  • Phone Number
  • PAN (Personal Identification Number) (Pvt/LLP/Partnership/Company PAN)
  • Email\s Gender
  • Physically challenged
  • Social Classification
  • The business’s name
  • Entity classification;
  • The Firm’s Complete Address
  • Date of business start-up Bank account information for the company or for the individual (current/savings)
  • Account No. IFSC code
  • Name and location of the bank ( Only the proprietor can use a savings account )
  • Manufacturing/services is a major activity.
  • ITR information NIC Code Number of people employed by the company
  • Are you a member of the GSTIN District Industry Centre?
  • Indicate the location ( Urban or Rural)
Udyam Registration Application Procedure

What is the process for getting an Udyam Registration?

The processes to get Udyam registration are as follows:

  1. We at SRCC assist you in obtaining a paperless Udyam registration in India.
  2. A business consultant initially contacts you and assesses your needs.
  3. The consultant will walk you through the whole procedure and inform you of the papers you’ll need to get your Udyam registration in India.
  4. Once the paperwork have been obtained, payment will begin. A relationship manager is assigned, who then completes the registration procedure.
  5. Regular follow-ups and adequate consultation are used by our relationship managers to ensure that the process runs well.
What are the Benefits of getting Udyam Registration in India?
  1. Udyam Registration has simplified the process of registering the business under MSMEs but there are also some additional benefits to it.
  2. Bank Loans can be availed at a lower rate of interest in some cases the loans can also be availed without the collateral or mortgage.
  3. The applicant is eligible for receiving government subsidies.
  4. The applicant gets the financial support to participate in foreign expos to showcase their products.
  5. Udyam registration can also help you save money on startup costs and even patenting.
  6. Small and medium-sized businesses with Udyam registration can also take advantage of numerous tax breaks and exemptions.
  7. Tariff subsidies, as well as capital and government subsidies, are available.
  8. With Udyam Aadhar registration, obtaining licences, permissions, and registration becomes easier.

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