Udyam Registration Process: Complete Guide for MSMEs

Posted on Thursday, October 24th, 2024 | By IndusInd Bank

Micro, Small, and Medium Enterprises (MSMEs) form a vital part of the Indian economy. Whether it is creating jobs or adding value to GDP, the contribution of MSMEs to the Indian economy is immense. 

To support and promote these enterprises, the Indian government has introduced the Udyam Registration process. MSMEs can enjoy a host of benefits by registering with the portal and getting the Udyam registration certificate.

Let’s walk you through the Udyam registration process and its various aspects.

What is Udyam Registration?

It is an initiative by the Ministry of Micro, Small, and Medium Enterprises to simplify the registration process for MSMEs. It replaces the earlier process known as Udyog Aadhaar. With Udyam registration, MSMEs receive a unique identification number that allows them access to various government schemes and benefits. 

You will receive the Udyam registration certificate after successfully registering your enterprise. Hence, knowing how to register for Udyam is essential. 

Eligibility and Documentation for Udyam Registration

First, let’s check the eligibility criteria and the necessary documentation:

The following enterprises are eligible:

• Micro Enterprises – Whose investment in plant and machinery or equipment does not exceed ₹ 1 crore and turnover does not exceed ₹ 5 crore.
• Small Enterprises – Whose investment in plant and machinery or equipment does not exceed ₹ 10 crore and turnover does not exceed ₹ 50 crore.
• Medium Enterprises – Whose investment in plant and machinery or equipment does not exceed ₹ 50 crore and turnover does not exceed ₹ 250 crore.

Documentation

If you look up the web for ‘how to make MSME certificate’, you might come across a list of documents that are needed for the process. 

However, the Udyam registration process is fully online and paperless. So, you do not have to upload any documents or proof. 

All you will need is the Aadhaar Number of:

• The proprietor if the enterprise is a proprietorship firm
• The managing partner if the enterprise is a partnership firm
• The Karta if the enterprise is a Hindu Undivided Family (HUF)

Steps for Online Udyam Registration

Here’s how to register your MSME with Udyam:

1. Start by visiting the official Udyam Registration website.

• Select the option for ‘new entrepreneurs who are not registered yet as MSME or those with EM-II’ on the homepage. This is only applicable if you have not registered under the Udyog Aadhar process. 

• Input your ‘Aadhaar Number’ and ‘Name of Entrepreneur’. Then, click on the ‘Validate & Generate OTP’ button.

• Enter the OTP that will be sent to your mobile number linked with Aadhaar and then click on ‘Validate’.

• Verify PAN details next. Enter the ‘Type of Organisation’ and the ‘PAN’ number. Then, click ‘Validate’. Tick the appropriate option if you have filed your previous year’s ITR and have GSTIN.

• Fill the Udyam registration certificate form. Fill in details such as the entrepreneur’s name, mobile number, enterprise name, plant/unit location, enterprise address and status, bank details, business activity, NIC code, and number of employees.

• Provide details about investment in plant and machinery and turnover. Select the declaration and click the ‘Submit and Get Final OTP’ button.

• Input the OTP and submit the form. You will receive the Udyam registration certificate after verification and completion of the process. It might take a few days.

When running a search for ‘how to make MSME certificate’, avoid sites which mention any fee payment. The Udyam registration process is completely free. 

Also Read: Best Practices to Secure Your Current Account

Conclusion

By registering with Udyam, MSMEs can unlock a world of opportunities and contribute to the Indian economy with greater enthusiasm and support.  

For MSMEs, managing finances with care is as crucial as obtaining the registration certificate. Opening a current account can help streamline your business transactions and improve financial management. With IndusInd Bank’s current account offerings, your financial transactions are not only secure and seamless but also rewarding. 

Open a current account with IndusInd Bank to experience the difference! 

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.