Step-by-Step Guide to Udyam Registration Certificate

Today, the Indian government classifies any micro, small, or medium enterprise (MSMEs) as 'Udyam.' MSMEs are involved in manufacturing, trading, processing, and service sectors. With a 30% contribution to India's GDP, it was only natural for the Government of India to enhance its growth and productivity. This is where an Udyam registration certificate can give the much-needed impetus for developing MSMEs.

Udyam Registration Certificate

To propel the growth of the MSME sector in the Indian economy, the government has introduced the Udyam registration certificate. This legal paperwork recognises and certifies a business as a micro, small, or medium enterprise (MSME). Post 1 July 2020, Udyam registration has become mandatory for all MSMEs.

It includes essential details like the enterprise's name, address, unique Udyam Registration Number, and issuance date.

Features & Benefits of Udyam Registration Certificate

The features that make Udyam registration an attractive option for MSMEs include:

• Simple and free online registration process.
• Government recognition of your enterprise.
• Can be updated as per the proprietor's convenience.
• Based on the self-declaration of information by the business owner

An Udyam registration benefits MSMEs in several ways as it allows to:

• Conduct business with ease with fewer regulatory processes.
• Priority access to financial services and credit.
• Avail collateral-free loans.
• Receive assistance from the government for training and market development.
• Preferential treatment while applying for government tenders and contracts.
• Under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006, they receive legal protection.
• Improved credibility owing to government recognition.

Eligibility criteria for Udyam registration

The Udyam registration certificate is accessible to any business entity (partnership form, proprietorship, HUF, private limited company, co-operatives, one-person company, limited company, limited liability partnership, or associated individuals) that complies with the established turnover and machinery/equipment investment criteria for MSMEs in India.

Documents Required For UDYAM Registration

The documents essential for the Udyam registration process include the following:

• Aadhaar Card
• Bank Passbook with a Photograph
• Voter Identity Card
• Passport
• PAN Card
• Driver's License
• Official Government ID (if applicable)
• Caste Certificate (for SC, ST, and OBC categories)
• Business Owner's Name and Aadhaar Number
• Business Name
• Details of the Initial Business Registration
• Documents Validating the Business Type
• Records Relating to Bank Account and Mailing Address
• National Industrial Classification Code

These documents may vary slightly depending on individual circumstances. It is advisable to exercise proper due diligence before going ahead with the registration.

Udyam Certificate Registration Process

Step 1 - Start by visiting the official Udyam registration website, accessible by clicking the provided link.

Step 2 - Select the 'New Registration' tab on the homepage to access the Udyam registration online form.

Step 3 - Add your Aadhaar PAN card numbers. Verify them by entering the OTP sent to your registered mobile number.

Step 4 - Choose the appropriate business or organisation type and enter the PAN number associated with your business accounts.

Step 5 - Complete all the required fields in the form, ensuring no errors.

Step 6 - Submit and confirm your Udyam registration by entering the OTP received on your mobile number.

Step 7 - Upon successful registration, you will receive a 'Thank You' message via SMS and email, along with your Udyam registration number.

Step 8 - Finally, download and print your Udyam Registration Certificate for your records.

Importance of Udyam Certificate for Businesses in India

Availing the Udyam certificate for your business opens the door to multiple benefits and opportunities. Apart from government recognition, this certificate allows an enterprise to enjoy credit, subsidies, and tax benefits and access better resources.

Governments prefer MSME Udyam registration-compliant enterprises over others to conduct business with. Businesses have an advantage in securing loans, experience better compliance, and enjoy legal protection under the MSME Development Act, 2006. Moreover, it enables better market access, fosters credibility, and opens doors to technical and marketing support. This recognition boosts competitiveness and partnerships. The Udyam Certificate is a cornerstone for MSMEs, supporting their growth, competitiveness, and financial stability in the Indian market.

Can I use my Udyam Registration Certificate to get an MSME business loan?

You can use your Udyam Registration Certificate to get an MSME business loan. Many banks and financial institutions offer MSME loans to businesses with a Udyam Registration Certificate.

• These loans are offered at low-interest rates and with more flexible repayment terms than other business loans.
• To get an MSME business loan, you must apply to the lending institution along with basic information about your business, such as your Udyam Registration Certificate number, financial statements, and business plan.
• The lending institution will observe your application and take a call based on your creditworthiness and the financial status of your business. You will receive the funds in your bank account if approved for the loan.

With lower interest rates, flexible repayment terms, longer loan terms, and security, Udyam-registered companies can easily avail of a business loan and boost their long-term growth.

How do I register on the Udyam Portal as a new MSME?

If you are a new MSME looking to register on the Udyam portal, you can begin with the steps as follows:

• Visit the Udyam registration portal by going to the website https://udyamregistration.gov.in.
• Click "Udyam Memorandum for new registrations" on the portal's homepage.
• Provide your 12-digit Aadhaar number for the business's proprietor, partner, or authorised signatory.
• Enter this OTP sent on your registered mobile number for verification.
• After successful Aadhaar verification, you must enter the relevant details about your business, such as its name, location, date of commencement, and the organisation type (proprietorship, partnership, etc.).
• You may be required to provide information about the plant and machinery, investment details, etc. Ensure they are accurate and within the prescribed limits for MSME classification.
• Review the information you've entered, and then submit the form.
• Your application will be sent for verification, and you will receive an acknowledgment with your Udyam Registration Number.
• Once verified, you will receive your Udyam registration certificate and Udyam registration number via email. You can also download and print this certificate.
• Ensuring that the information you provide during the registration process is accurate and consistent with your business's details is crucial.

How To Download Udyam Certificate Online?

Downloading the Udyam certificate from the official website is a simple and hassle-free process:

• Add your name as it appears on your Aadhar Card issued by UIDAI.
• Enter your mobile number consistent with your Udyam Registration Certificate information.
• Provide your registered email address, like in your Udyam Registration Certificate records.
• Include your Udyam Registration Number to get a printout of your certificate.
• You will receive your Udyam certificate with the registration on your registered email address.

Conclusion

With a streamlined online application process, businesses can apply for an Udyam certificate and, in turn, access a world of benefits, financial support, and government-backed initiatives. This digital transformation simplifies the registration process and brings in a new era of growth and opportunity. Take the next step and apply for our business loans today to fuel your business expansion and development.