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The concept of creating MSME Registration was to make the process of registering a firm as a Micro Small Medium Enterprise (MSME) easier for business owners.

Prior to the establishment of Udyam Registration, the procedure for doing so was a lengthy and time-consuming bureaucratic process that required the management of a large amount of documentation. Things have altered and, to some extent, improved for medium, small, and micro-enterprises since the implementation of Udyam Registration.

If you own a medium, small, or micro-enterprise and haven’t registered it yet, you should be aware that registering your MSME through Udyam Registration entitles you to a slew of perks.

There was a previous system of EM-I/II prior to the UAM system (Entrepreneur Memorandum). Entrepreneurs preferred a heterogeneous system under this arrangement.

Some of them used to rely on the national platform, while others used their own portal to register MSME. Furthermore, manual paperwork was used by only a few of them previously.

The biggest question on the minds of many new entrepreneurs is what Udyam Registration is. If you have the same question, you’ve come to the right place.

Udyam Registration, also known as Udyog aadhar Registration, is a government registration that comes with a certificate of recognition and a unique number. This is for the purpose of certifying small and medium-sized businesses and organizations.

The main goal of launching this facility was to give the government a way to provide the most benefits to medium and small-scale firms and industries in India that are registered through MSME using their Aadhar Card numbers.

The entity’s owner, director, or proprietor will supply his or her 12-digit Aadhar Number. This is a legal requirement regardless of whether the business or entity is a sole proprietorship, an LLP, a private limited company, or something else. It should have the MSME registration process’s recognition certificate.

Also read: udyam certificate download

Let’s clarify a few points. Organizations that are eligible for Udyam Registration are either in the business of manufacturing, producing, processing, or preserving commodities, or in the business of delivering services. Traders that buy, sell, import, or export goods, in other words, are ineligible for Udyam Registration.

However, you should be aware that a business must meet a set of criteria in order to be classed as a medium, small, or micro-enterprise and receive MSME registration.

Enterprise Types ( for Manufacturing or Service sector, Both)

Micro enterprises with a capital investment of up to Rs 1 crore and a turnover of up to Rs 5 crore

Small businesses with an investment of up to Rs 10 crore and sales of up to Rs 50 crore

Medium-sized businesses with a capital investment of up to Rs 50 crore and a turnover of up to Rs 250 crore

The Udyam Registration procedure is simple, as is the form completing the procedure. Today’s system has been revitalized, and it seeks far less data than the previous system. It’s worth noting that MSME registration is free, and the website doesn’t charge an official fee for obtaining a certificate of registration.

Things are a lot easier and more efficient today. Here’s a quick approach to registering for Udyam Registration under MSME.

Document requirement for registering for Udyam

The MSME registration process is entirely online, without the use of paper, and is based on self-declaration.

There are no documentation or proof requirements for registering an MSME.

For registration, only the Aadhaar Number will suffice.

PAN and GST-related information on investment and turnover of businesses would be automatically retrieved from government databases.

From April 1, 2021, you must have a PAN and a GST number.

In the event of a discrepancy or complaint, the General Manager of the concerned District Industries Centre will conduct an investigation to verify the details of the Udyam Registration filed by the firm.
After that, forward the matter with any necessary comments to the State Government’s Director, Commissioner, or Industry Secretary, who, after issuing a notice to the enterprise and allowing it to present its case, may amend the details or recommend the cancellation of the Udyam Registration to the Ministry of Micro, Small, and Medium Enterprises, Government of India.


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