How to register MSME on Udyam portal? A step-by-step guide on procedure
New Delhi, Mar 20, 2024
Udyam registration is an electronic certification provided by the Indian government to MSMEs
Micro, Small, and Medium Enterprises (MSMEs) are widely recognised as the backbone of the Indian economy with over 123 million individuals employed in this sector. Their contribution to the Gross Domestic Product (GDP) was recorded at 29% in the financial year 2021-22. Notably, the year 2022-23 saw MSME products reaching an export valuation of approximately $200 billion.
What are MSMEs?
MSMEs are a categorisation introduced by the government under the Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006. These enterprises are involved in the production, manufacturing, processing, and preservation of a wide range of goods and commodities.
Udyam registration
Udyam Registration is an electronic certification provided by the Indian government to MSMEs. This certification, which supersedes the former Udyog Aadhaar Memorandum (UAM) registration, is not obligatory but comes with a plethora of advantages for MSMEs, encouraging them to obtain it.
Criteria for MSME registration
Eligibility for Udyam registration is determined based on specific investment and annual turnover thresholds across the trading, manufacturing, and service sectors. These criteria are designed to include a broad spectrum of enterprises within the MSME classification, ensuring a wide range of businesses can benefit from the registration.
Who should apply?
A diverse array of business entities, from proprietorships to cooperative societies, is eligible for Udyam registration, provided they meet the specified criteria.
Benefits of Udyam registration
Govt schemes: To help MSME entrepreneurs, Centre, along with the Reserve Bank of India (RBI) has launched several schemes like:
MSME Samadhaan
Udyog Aadhaar
Make In India
Start-up India
ZED scheme
Mudra
Udyam registration serves as a key for MSMEs to access a variety of government schemes and programmes aimed at supporting their growth and development.
Registered MSMEs enjoy financial benefits too, including priority sector lending and access to loans at reduced interest rates. Additionally, the integration of the Udyam portal with other government systems facilitates smoother administrative processes, enhancing the operational efficiency of MSMEs.
MSME registration process
The process for Udyam registration requires basic documentation, such as the PAN card number and Aadhaar number of the individual associated with the enterprise.
Steps to register MSME online
Step 1: Visit the Udyam registration portal (https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm)
Step 2: On the homepage, click the option ‘For new entrepreneurs who are not registered yet as MSME or those with EM-II.’
Step 3: Enter the ‘Aadhaar Number’ and the ‘Name of Entrepreneur,’ then click the ‘Validate & Generate OTP’ button.
Step 4: An OTP will be sent to the mobile number linked with the Aadhaar card. Enter the OTP and click on the ‘Validate’ button.
Step 5: Once the Aadhaar is validated, proceed to the PAN verification page. Enter the ‘Type of Organisation’ ‘PAN’ number, and click the ‘Validate’ button. Also, indicate whether you have filed the previous year’s ITR and if you have a GSTIN.
Step 6: The Udyam registration application form will appear. Fill in all required details
Step 7: Then click the submit button and get an OTP. Select the declaration.
Step 8: Enter the OTP received and submit the form. You will receive the Udyam e-registration certificate in your email.
The Udyam Registration Certificate
Upon successful registration, MSMEs receive an Udyam Registration Certificate. This certificate, equipped with a dynamic QR Code, provides easy access to the enterprise's details, symbolising the enterprise's official recognition under the MSME category.
[The Business Standard]
