Trying to get your Udyam Registration Certificate but finding it confusing how to go about it?
Be it to avail benefits under the government’s Credit Linked Capital Subsidy Scheme or to get short-term funds through Invoice Discounting on the TReDS (Trades Receivable and Discounting System), you may need an Udyam Registration Certificate.
If your MSME is already registered on the UAM portal, you must register on the Udyam portal to make sure your GST details are linked with your registered MSME on the backend and download your Udyam Registration Certificate so you do not face any hassle while trying to get credit from banks.
What is an Udyam Registration Certificate?
It is an e-certificate provided to MSMEs that register on the Udyam portal. The certificate is issued by the Ministry of Micro, Small, and Medium Enterprises to enterprises registering on the Udyam portal.
Upon successful registration on the Udyam portal, a permanent identity number is also issued to the enterprises.
The Udyam portal was launched by the government on 1st July, 2020 and has since issued more than 2 crore Udyam Registration Certificates as on 21st July 2023.
Udyam Registration Certificate Sample
Who can apply for an Udyam Registration Certificate?
All enterprises that are not yet registered as an MSME can register themselves on the Udyam portal and apply for an Udyam Registration Certificate.
At the same time, those enterprises which had earlier registered on UAM portal and hold a UAM Registration Certificate can also register themselves on Udyam Registration. Doing so is essential since RBI has allowed lenders to ask for Udyam Registration Certificates while lending and hence, it may be put forth by banks as a requirement for disbursing loans.
The criteria to determine whether an enterprise is Micro, Small, or Medium is based upon the enterprise’s investment and turnover and is as such-
| Classification | Investment in Plant and Machinery or Equipment | Turnover |
|---|---|---|
| Micro | Not more than 1 crore | Not more than 5 crores |
| Small | Not more than 10 crores | Not more than 50 crores |
| Medium | Not more than 50 crores | Not more than 250 crores |
Suggested Read: MSME Advantages and Disadvantages | Updated List [2023]
Step-by-Step guide to procure Udyam Registration Certificate.
To get your Udyam Registration Certificate, one must follow these steps-
Step 1: Visit the Udyam Portal for registration as an MSME.
Step 2: If you’re an entrepreneur and have not registered your enterprise as an MSME yet, you must first register yourself here.
Step 2.1: If you had previously registered on the UAM portal and your enterprise is registered as an MSME, you must register yourself here.
Step 2.2: If you’re an informal enterprise and lack the technical know-how to register on the portal, an option to register through Designated Agencies (usually banks and NBFCs) has been provided.
Step 3: Once there, you must provide your Name and Aadhaar number if you’re an entrepreneur and validate using an OTP.
Step 3.1: If you’re an enterprise with a UAM certificate, you must provide your Udyog Aadhar number and validate either through email or mobile number.
Step 4: Once validation through OTP is complete, you must fill in your PAN details and the Type of Organisation.
Then, you will be required to fill out the Udyam form and provide the required details and get it validated using a final OTP.
Step 5: After completing the steps, you would receive your Udyam Registration Number and Udyam Registration Certificate in your email.
Otherwise, you can print your Udyam Registration Certificate from the portal itself.
You must visit the “Print Udyam Certificate” section on the portal which would lead you to this page.
Once there, you must fill in your details and validate using an OTP. You would then receive your Udyam Registration Certificate on the webpage which could be downloaded.
Benefits of Udyam Registration
There are a plethora of benefits of registering yourself as an MSME on the Udyam portal-
- It is completely free of cost and entails no fee.
- Upon successful registration, a permanent identification number would be allotted to you which would make your enterprise a part of the formal economy.
- New avenues of credit would open up to your enterprise on the basis of your Udyam Registration Certificate.
- You would be eligible for government schemes for MSMEs and eligible for Priority Sector Lending from banks.
- Access to TReDS portal through which you could discount your invoices.
- Access to SAMADHAAN portal for MSMEs which is a grievance portal for MSMEs to address issues of timely payments.
- An altogether different portal (Udyam Assist Platform) has been provided for informal enterprises wherein Designated Agencies (Banks and NBFCs) would hand-hold and guide through the registration process.
- No need for renewal of registration.
Eligibility for Udyam Registration
The following are the parameters to determine the eligibility under Udyam Registration-
1.The enterprise must conform to the criteria of classification as shared by the Government of India for MSMEs which is as such-
- For micro-enterprises, the investment value must not exceed rupees 1 crore, and the turnover should not exceed 5 crores.
- For small enterprises, the investment value must not exceed rupees 10 crores, and the turnover should not exceed 50 crores.
- For medium enterprises, the investment value must not exceed rupees 50 crores, and the turnover should not exceed 250 crores.
2.The entity must be either of the following-
- Hindu Undivided Family (HUF)
- Private Limited Company
- Limited Company
- Co-operative Society
- One-Person Company
- Proprietorships
- Limited Liability Partnership
- Limited Liability Company
- Partnership Firms
- Any other association of persons or undertaking.
Suggested Read: 7 Types of Company Registration In India
Documents required for Udyam Registration
The following documents are required for successfully registering yourself on the Udyam portal-
- GST details– of the Company/LLP/Co-operative/Trust.
- Aadhar number– of the Proprietor in case of a Proprietorship, Managing partner in case of a Partnership, and of the Karta in case of an HUF (Hindu Undivided Family).
In case of MSMEs previously registered on UAM portal, Udyog Aadhaar Number will be required. - PAN number– of the organisation or its assigned signatory.
- Self-declaration in case an organisation registers with a PAN number that didn’t possess a PAN number in years prior to the registration.
- MSME Certification (in case the MSME is already registered).
Conclusion
The UDYAM portal, launched by the government on July 1st, 2020 provides an opportunity for informal enterprises to become a part of the formal economy, opening up various opportunities and schemes which were hitherto unavailable to them.
Udyam registration would also make the objective of mapping enterprises easier for the government since it is linked with the GST and Income Tax network on the backend.
Udyam Registration Certificate is thus bound to become an essential document in the future if they wish to avail of services and schemes being designed by the Government for MSMEs.
FAQs
Is Udyam Registration mandatory?
Yes, Udyam registration is mandatory if one wishes to register their firm as an MSME.
Do previously registered MSMEs have to re-register on the Udyam portal?
Yes, all previously registered MSMEs must re-register on the Udyam portal. However, an enterprise cannot register twice as an Udyam MSME.
Is Udyam free of cost?
Yes, Udyam registration is free of cost.
Is GST mandatory for Udyam Registration?
Yes, GST is mandatory for registration from 1/04/2021 onwards.
Suggested Read: RBI Approved Loan Apps In India
What is the validity period of the Udyam certificate?
Udyam certificate is permanent. You get a permanent 19-digit number, that will exist as long as the enterprise exists.
What is the turnover limit for Udyam registration?
- For Micro enterprises, it is INR 5 Crore.
- For Small enterprises, it is INR 50 Crore.
- For Medium enterprises, it is INR 250 Crore.
Can I change name in Udyam certificate?
No, you can’t change name in the Udyam certificate. Not just name but State, District, and Aadhar Number can’t be changed in the Udyam registration certificate.
Can we change the proprietor name in Udyam registration?
If the Udyam registration is in the name of the Sole Proprietor, then you can’t change the name.
