The idea behind introducing Udyam Registration was to simplify the procedural format that business owners had to go through to register their business under Micro Small Medium Enterprise or MSME.
Before the introduction of Udyam Registration, the procedural format for the same was quite hectic and a time-consuming bureaucratic process that used to require handling of lots of paperwork. However, with the introduction of Udyam Registration, things have changed and to some extent, have improved for medium, small, and micro-enterprises.
If you own a medium, small or micro-enterprise and you haven’t registered your MSME yet, you should know that on registering your MSME via Udyam Registration, you will be liable to enjoy numerous benefits.
Prior to the UAM system, there used to be a former system of EM-I/II (Entrepreneur Memorandum). Under this system, entrepreneurs used to opt for a heterogeneous system.
Some of them used to rely on the national portal, and some of the states had their portal for carrying out MSME registration. Additionally, Few of them used to rely on manual paperwork.
However, things have changed after the replacement of the old system.
The main question that several newbie entrepreneurs have in their minds is what Udyam Registration is. If you are having the same question, then you are at the right place.
Udyam Registration also known as MSME Registration is nothing but a government registration that is provided along with a recognition certificate and a unique number. This is to certify small/medium businesses or enterprises.
The central motive behind the launch of this facility was to offer a way to the government to provide the maximum benefits to medium or small-scale businesses or industries in India, who are registered via MSME through their Aadhar Card Number.
The owner, director, or proprietor of the entity will provide his/her 12-digit Aadhar Number. This is a compulsory guideline whether the enterprise or entity is a sole proprietor, an LLP, a Private limited company, or anything else. It should have the recognition certificate provided via the MSME registration process.
Let’s get some things clear! The organizations which are eligible for Udyam Registration are meant to be either in manufacturing or producing or processing or preservation of goods or in providing the services. In other words, Traders who buy, sell, import, or export the goods are not even eligible for applying for Udyam Registration.
But you should know that there are a set of criteria that an entity has to meet to be classified as a medium, small, or micro-enterprise for obtaining the MSME registration.
As per the current notification,
Investment up to Rs 1 Cr and turnover up to Rs 5 Cr
Investment up to Rs 10 Cr and turnover up to Rs 50 Cr
Investment upto Rs 50 Cr and turnover upto Rs250 Cr
One will get to enjoy several advantages after registering his/her business and by obtaining Udyam Registration. Some of them are listed below:
Hope you enjoyed reading this article. At Falcon eBiz, we continuously work to empower Indian businesses. If you own a business, you might want to Register for Udyam Registration