The Udyam Registration is a mandatory certificate from the Ministry of Micro ,Small and Medium Enterprises that MSMEs receive upon signing up on the official government portal
Types of Udyam registration
An enterprise shall be classified as a Micro, Small or Medium
enterprise on the basis of the following criteria, namely
(i) A micro enterprise, where the investment in plant
and machinery or equipment does not exceed one crore
rupees and turnover does not exceed five crore rupees.
(ii) A small enterprise, where the investment in plant
and machinery or equipment does not exceed ten crore
rupees and turnover does not exceed fifty crore rupees.
(iii) A medium enterprise, where the investment in
plant and machinery or equipment does not exceed fifty
crore rupees and turnover does not exceed two hundred and
fifty crore rupees.
Documents Required for Udyam Registration:
Registering Your Udyam: A Quick and Easy Guide
Ready to unlock the benefits of your Micro, Small or Medium Enterprise (MSME)? Udyam registration makes it smooth and simple. Here's a streamlined guide to getting your certificate in no time:
- Open the Gateway:
Head to the official Udyam registration portal: https://udyamregistration.gov.in/.
- Start Your Journey:
On the homepage, click "For new entrepreneurs..." This opens the registration form.
- Verify Your Identity:
Enter your Aadhaar number and name. Click "Validate & Generate OTP" to receive a verification code on your linked mobile number.
- Define Your Enterprise:
Choose your business type and, if applicable, enter your business PAN number.
- Fill in the Blanks:
Provide all the required details in the form accurately. Double-check everything before proceeding.
- Finalize Your Registration:
Click "Submit" and enter the OTP sent to your mobile number for verification.
You'll receive a confirmation message with your Udyam registration number on your phone and email.
- Print Your Proof:
Download and print your Udyam Registration Certificate, a symbol of your official MSME status.
HOW TO CLASSIFY COMPANIES
(1) A composite criterion of investment and turnover shall apply for classification of an enterprise as micro, small or medium.
HOW INVESTMENT IS CALCULATED
(2) If an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or turnover, it will cease to exist in that category and be placed in the next higher category but no enterprise shall be placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.
(3) All units with Goods and Services Tax Identification Number (GSTIN) listed against the same Permanent Account Number (PAN) shall be collectively treated as one enterprise and the turnover and investment figures for all of such entities shall be seen together and only the aggregate values will be considered for deciding the category as micro, small or medium enterprise.
(1) The calculation of investment in plant and machinery or equipment will be linked to the Income Tax Return (ITR) of the previous years filed under the Income Tax Act, 1961.
(2) In case of a new enterprise, where no prior ITR is available, the investment will be based on self-declaration of the promoter of the enterprise and such relaxation shall end after the 31st March of the financial year in which it files its first ITR.
(3) The expression “plant and machinery or equipment of the enterprise, shall have the same meaning as assigned to the plant and machinery in the Income Tax Rules, 1962 framed under the Income Tax Act, 1961 and shall include all tangible assets (other than land and building, furniture and fittings).
(4) The purchase (invoice) value of a plant and machinery or equipment, whether purchased first hand or second hand, shall be taken into account excluding Goods and Services Tax (GST), on self-disclosure basis, if the enterprise is a new one without any ITR.
(5) The cost of certain items specified in the Explanation I to sub-section (1) of section 7 of the Act shall be excluded from the calculation of the amount of investment in plant and machinery.
Benefits of Udyam Registration:
- Embracing Udyam registration can be instrumental in securing government tenders.
- Access business loans from both banks and non-banking financial corporations (NBFCs) at more favorable interest rates.
- Capitalizing on exclusive tax rebates available only for Udyam-registered businesses.
- Streamlining the process of obtaining government approvals, licenses, and registrations for your business.
- Availing tariff subsidies, capital tax incentives, and various concessions for your industry.
Why Choose Ecfile for Udyam Registration:
- Ecfile likely has experience and expertise in handling Udyam registrations, ensuring that your application is accurately prepared and submitted. Their familiarity with the process can streamline the entire registration process.
- They provide a convenient platform or service that simplifies the registration process. This might involve user-friendly interfaces, clear instructions, and support to help customers through the registration steps.
Compliance and Accuracy:
- Ecfile likely ensures that your registration complies with all the necessary guidelines and regulations. They are likely to have measures in place to minimize errors or mistakes in the application, reducing the chances of rejection due to incorrect or incomplete submissions.
- Utilizing Ecfile’s services could potentially save you time. They might offer faster processing times due to their experience and streamlined processes, allowing you to get your Udyam registration completed efficiently.