In this informative blog, we'll walk you through the process of registering your business as an MSME (Micro, Small, and Medium Enterprise) in India for the year 2024. We'll cover the updated Udyam Registration process, the benefits of registration, and the key steps to ensure a smooth and successful application.
Table of Contents
Understanding Udyam Registration
The Ministry of Micro, Small, and Medium Enterprises has introduced Udyam Registration to classify MSMEs in India and provide them with due benefits. This registration process is designed to seamlessly integrate registered organizations into government databases such as PAN, GST, and IT, among others.
Benefits of Udyam Registration
Access to government tenders
Business loans at lower interest rates
Exclusive tax rebates
Streamlined government approvals, licenses, and registrations
Tariff subsidies and capital tax subsidies
Rebates and concessions for industry setup
Initiating the Registration Process
The Udyam Registration process can be initiated through the official website udyam registration.gov.in. It is essential to ensure that you are on the original website to avoid fraudulent activities. Upon accessing the website, select the option "New Entrepreneur" and proceed with providing the required details such as Aadhar number, entrepreneur name, type of organization, and PAN number.
Validation and Confirmation
After providing the necessary details, validate and generate the OTP linked to your Aadhar-registered mobile number. Proceed by selecting the type of organization and entering the PAN number. Once the PAN number is provided, acknowledge the terms and conditions to proceed with the registration process.
Providing Personal and Business Details
When initiating the Udyam Registration process, you will be required to furnish personal and business details. This includes providing your Aadhar number, entrepreneur name, type of organization, and PAN number. Additionally, you will need to validate and generate an OTP linked to your Aadhar-registered mobile number, and acknowledge the terms and conditions to proceed with the registration process.
Entering Unit and Address Information
After providing your organization's details, you will proceed to enter unit and address information. If your business operates from multiple units or locations, you can add and specify each unit's name and address. Ensure to accurately input your office address, including latitude and longitude details, and pin code for precise location identification.
Verifying Previous Registration Status
Before initiating the Udyam Registration process, it is essential to verify your previous registration status. If you have previously registered for Udyam or MSME, select the relevant status accordingly. If not, then select "Not Applicable" and proceed with entering the date of incorporation or registration of your enterprise.
Declaring Business Incorporation Details
Within the "State of Enterprises" section, you are required to input the date of incorporation or registration of your enterprise. If you already have a GST number, you can mention the date of GST registration. In the absence of a GST number, provide the date when your business commenced operations. Additionally, indicate whether weather production or commencement of business has occurred.
Providing Bank Account Information
When completing the Udyam Registration process, it is crucial to provide detailed bank account information. This includes specifying the bank name, IFSC code, and bank account number. Whether your business operates through a current account or a savings account, ensure to accurately provide the relevant details. Additionally, it is essential to verify the accuracy of the provided information to avoid any discrepancies during the registration process.
Specifying Business Activities and NIC Codes
Within the Udyam Registration process, specifying the primary business activities and corresponding National Industrial Classification (NIC) codes is a critical step. If your business operates as a manufacturing unit or a service unit, select the appropriate category. Subsequently, under the service category, specify the nature of your primary business activity, whether it involves non-trading or trading activities. Following this, input the National Industrial Classification (NIC) code corresponding to your business activity. In case the specific NIC code is not readily available, manual search options or direct selection from the list of codes are provided for accurate classification.
Entering Employment and Investment Details
At point number 19, you need to provide the total number of male and female employees working in your organization. After that, at point number 20, you are required to mention the investment in plant and machinery. You need to provide the previous year's WDV (Written Down Value) as of 31st March based on the last year's ITR. If your business is newly established and does not have any assets from the last year, you can enter zero. Additionally, in the exclusion section, you can also enter zero. This will reflect the net investment in your plant and machinery, considering that you have just started your business and did not have any assets in the previous year.
Declaring Turnover and Additional Registrations
At point number 21, you need to mention the turnover during the year 21 and 22. If your business is new and you have just started, you can enter zero as there would be no turnover in the previous year. Otherwise, if your business has a turnover, you are required to mention the amount. Similarly, at point number 22, you will indicate your interest in getting registered on government e-marketplace portals, TReDS portal, National Career Service portal, and NSIC (National Small Industries Corporation) portal. You can express your interest in these portals by selecting "Yes" or "No" as per your preference.
Submitting the Application and Obtaining the Certificate
After completing the Udyam Registration process, the next steps involve submitting the application and obtaining the Udyam Certificate. This process entails providing the necessary details, validating and generating the OTP linked to your Aadhar-registered mobile number, and acknowledging the terms and conditions to proceed with the registration process. Once the application is successfully submitted, a unique registration number will be generated, which needs to be saved for future reference. Following this, the Udyam Certificate can be obtained by validating the OTP and verification code sent to your mobile number and logging in to the portal to print the certificate.