UDYAM Registration

UDYAM Registration - An Overview

YOU CAN NOW REGISTER A UDYAM Registration IN INDIA AT JUST RS. 999 (ALL INCLUSIVE)*

Vide notification dated 26th June 2020, the Ministry of Micro, Small and Medium Enterprises notifies revised criteria for classifying the enterprises as Micro, Small and Medium Enterprises (i.e., MSME) and lay down the form and procedure for ‘Udyam Registration’. The present article briefly analysis the said notification.

Udyam registration for existing enterprise

The existing enterprises registered either under EM-Part – II or UAM or registered with any other organization under the Ministry of Micro, Small and Medium Enterprises are required to register again on the Udyam Registration Portal. Such enterprises are required to apply and obtain Udyam Registration on or after 1st July 2020.

The enterprises registered prior to 30th June 2020 should note the following points-

  • Such enterprises shall be re-classified based on the revised criteria notified under notification dated 26th June 2020; and
  • Such enterprises registered prior to 30th June 2020 shall be valid only till 31st March 2021.

    • Updation of information in Udyam registration

    The enterprise already having the Udyam registration number needs to update its information online on the Udyam Registration Portal. In case of failure, the enterprise would be liable for suspension of its status.

    The classification of the enterprise shall be updated based on the information collected from the income tax return or the goods and service tax return. The updation, if any, and its consequence are explained hereunder-

    Udyam Registration Eligibility

    Not all businesses can obtain Udyam registration. Only those entity that is classified as a micro, small or medium enterprise as per the table below based on investment in plant and machinery is eligible for Udyog Aadhaar.

    Classification Investment in Plant & Machinery or Equipment Turnover
  • Micro-Enterprise Not more than 1 Cr. Not more than 5 Cr.
  • Small Enterprise Not more than 10 Cr. Not more than 50 Cr.
  • Medium Enterprise Not more than 50 Cr. Not more than 250 Cr.

    • Benefits of Udyam Registration

    After obtaining Udyam registration, a business can enjoy the following benefits:

  • The applicant will receive financial support for participating in foreign expos to showcase their products.
  • The applicant will also be eligible for government subsidies.
  • Registration would facilitate the hassle-free opening of current bank accounts in the name of the business.
  • It would also allow businesses to apply for government micro business loans and other such related beneficial schemes.
  • Easier sanction of bank loans at lower interest rates.