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The blog provides a detailed guide on obtaining an Udyam Registration Certificate for MSMEs in India, explaining the benefits, step-by-step registration process, and eligibility criteria to help businesses access government benefits and financial assistance.
Udyam Registration has been a mandatory process since July 1, 2020, for classifying MSMEs in India, facilitating their inclusion in government databases.
Registered MSMEs gain access to government tenders, lower loan interest rates, tax rebates, and various subsidies.
Registration steps involve visiting the official site, entering Aadhaar and PAN details, and submitting the form for a Udyam Registration Certificate.
Eligibility depends on investment and turnover limits; micro, small, and medium enterprises must meet specific criteria.
The micro, small, and medium-sized enterprises (MSMEs) contribute heavily to India's Gross Domestic Product (GDP). Over 110 million people are employed by MSMEs. Yet, these enterprises face several challenges and issues while growing or expanding their footprints.
To identify and help these MSMEs, the Indian government took the initiative on May 13, 2020, to announce a new metric for classifying MSMEs in India. As per this classification metric, all MSMEs in India would be known as 'Udyam' and have to go through a registration process known as 'Udyam Registration.' The Union Cabinet approved this classification, and the Udyam registration process became mandatory for all MSMEs from July 1, 2020.
The Ministry of Micro, Small, and Medium Enterprises introduced Udyam Registration to classify MSMEs in India and provide them with the due benefits. The government has set the structure of Udyam registrations such that the registered organisations will automatically start reflecting in other government databases, including PAN, GST, and IT.
As an MSME business owner, registering your business under the Udyam classification has several benefits. These include:
It will help you get a government tender
You can get business loans from banks and non-banking financial corporations (NBFCs) at lower interest rates.
You can avail of various tax rebates available exclusively for Udyam.
It will become easy for you to get government approvals, licenses, and registrations for your business.
You will get tariff subsidies and capital tax subsidies.
You can avail of rebates and concessions for setting up your industry
To avail of the benefits mentioned above, you must complete your business's Udyam registration. After completing the registration process, you will get a Udyam Registration Certificate. Below is a step-by-step guide to Udyam registration:
Step 1: Click here to visit the official Udyam registration website.
Step 2: Click on the ‘New Registration’ tab on the Home Page. You will get a Udyam registration form.
Step 3: Enter your Aadhar and PAN card numbers, and then validate them by entering the OTP received on your mobile number.
Step 4: Select your type of business or organisation. Enter the business PAN number attached to your business accounts.
Step 5: Fill in all other relevant details in the form. Double-check every piece of information before submitting the registration form.
Step 6: Submit and validate your Udyam registration form by entering your mobile number and the OTP received on it.
Step 7: After successful registration, you will receive a ‘Thank You’ message on your mobile number, e-mail ID, and Udyam registration number.
Step 8: You can then download and print your Udyam Registration Certificate.
Any business entity that fulfills the maximum turnover and investment (in equipment and machinery) criteria for MSMEs in India can get the Udyam registration certificate. The table below depicts the eligibility criteria for a business to qualify as an MSME in India:
| Type of Enterprise | Investment Criteria | Annual Turnover Criteria |
|---|---|---|
| Micro | Does not exceed ₹1 crore | Not exceeding ₹5 crore |
| Small | Does not exceed ₹10 crore | Not exceeding ₹50 crore |
| Medium | Does not exceed ₹50 crore | Not exceeding ₹250 crore |
Registering your business as Udyam has a plethora of benefits. However, fulfilling the eligibility criteria and possessing the required documents to complete your Udyam registration is necessary. After this, the process of Udyam registration is simple, online, and hassle-free.
If you are a micro or small business owner seeking additional financing, HDFC Bank has numerous customised solutions to help you. You can also apply for a Working Capital Loan to get started. For further details, contact your Relationship Manager or visit the closest branch to know more.
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Disclaimer: *Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. All loans for MSMEs are at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Banks requirement.