Description
Udyam Registration
What is Udyam Registration?
- To enable the Micro, Small and Medium enterprises on a large scale to effectively tackle the widespread problems of unemployment and poverty;
- To extend the benefits of various government schemes at one stop to the SSI units;
- To safeguard the SSI from financial harassment in the hands of the big industries.
Eligibility for Udyam Registration
Who is eligible for Udyam registration in India?
Not all businesses require to obtain Udyam registration in India. The entities that are mentioned below that are classified as micro, small or medium enterprises based on the investment in plant and machinery are eligible for Udyam registration.
| Classification | Manufacturing Sector |
| Micro enterprises | Upto Rs 25 lakh investment in plant & Machinery |
| Small enterprises | Upto Rs 5 crore investment in Plant & Machinery |
| Medium Enterprises | Upto Rs 10 crore investment in Plant & Machinery |
Becoming an Enterprise
- Any individual who is intending to establish a Micro, small or medium enterprise should get an Udyam registration in India.
- Once the registration is done an enterprise that is referred to as Udyam is assigned the permanent identification number that is known as the Udyam Registration Number
- An Udyam Registration Certificate is issued on completion of the registration process.
- All the units with the Goods and the Service Tax Identification Number ( GSTIN) that are listed against the same Permanent Account Number ( PAN) should be treated as one enterprise and turnover and the investment figures for all the entities should be seen together and only the aggregate values will be considered for deciding the category as a micro, small or medium enterprise.
Calculation of investment in plant and machinery
- The calculation of investment in plant and machinery or equipment is to be linked with the Income Tax Return for the previous years that is filed under the Income Tax Act,1961.
- In case of new enterprises where no ITR filing is available, the investment will be based on the self-declaration of the promoter of the enterprise and this relaxation will end after 31st March of the financial year in which the first ITR is filed.
- The expression “plant and machinery or equipment” of the enterprise shall have the same meaning as it is assigned to the plant and machinery in the Income Tax Rules,1962 are under the Income Tax Act,1961 and shall include the tangible assets which do not include the land and buildings, furniture and fittings.
- The invoice value of a plant and the machinery or the equipment whether it is purchased first hand or second hand should be considered and the GST should be excluded on a self-disclosure basis if in case the enterprise is newly formed without any ITR.
- The Cost of certain items that are specified in explanation I to the sub section of section 7 of the Act should be excluded from the calculation of the amount of the investment in plant and machinery.
Calculation of turnover
- Exports of the goods or services or both should be excluded while calculating the turnover of the enterprise be it micro, small, or medium for classification.
- Information concerning turnover and export turnover for an enterprise should be linked to the Income Tax Act or the CGST and the GSTIN.
- The turnover relevant to the figures of such enterprise which is not having a PAN will be considered on a self-declaration basis for a period up to 31st March 2021 and after. The PAN and GSTIN shall be mandatory.
Composite criteria of investment and turnover for classification
Composite criteria of investment and turnover should be applied for the classification of an enterprise as micro, small or medium.
If the enterprise is crossing the ceiling limits that are specified for the present category in either of the two criteria of investment or turnover it will cease to exist in that category and will be placed in the next higher category but no enterprise should be placed in the lower category unless it is going below the ceiling limits that are specified for the present category in both investment as well as turnover criteria.
All the units that have a valid GSTIN which is listed against the same PAN are to be collectively treated as one enterprise and the turnover and the investment figures of these entities should be seen together and only the aggregate values will be considered for deciding the category as a micro, small or medium enterprise.
Documents Required for Udyam Registration
What are the documents required for Udyam Registration in India?
- To obtain Udyam Registration in case of Proprietorship the applicant’s Aadhar card and PAN is a main requirement.
- Similarly, in the case of proprietorship, the applicant’s Aadhar and a valid PAN are required.
- In the case of Partnership, the Aadhar and the PAN of the partner are to be used.
- In the case of a company, the Directors Aadhar and PAN can be used.
- In the case of an LLP, the Aadhar and PAN card of the designated partner is to be used.
In case if the applicant or an authorized signatory does not have a valid Aadhar Card then the applicant must first apply for an Aadhar card at an Aadhar enrolment center. Once the Aadhar is obtained the Udyam Registration can be initiated.
Details to be provided for obtaining Udyam Registration
What details are required for Udyam Registration?
- Aadhar Number ( Mandatory )
- Name of the entrepreneur as mentioned in the Aadhar Card ( Should be linked with the mobile number)
- Mobile Number
- PAN Number ( Pvt/ LLP/ Partner/ Company PAN number)
- Gender
- Physically handicapped
- Social Category
- Name of the enterprise
- Type of entity;
- Full Address of the Firm
- Date of commencement of business
- Bank details of the Company or the personal ( Current/ Savings)
- IFSC code
- Account No
- Bank Name and Branch ( Only the proprietor can use a savings account )
- Major activity – Manufacturing/service :
- In case if it is manufacturing select the type of manufacturing
- In case of service the type of service
- NIC Code
- No of persons employed in the Company
- ITR details
- Do you have GSTIN
- District Industry Centre
- Specify the area ( Urban or Rural)
Procedure for Udyam Registration Application
What is the procedure to obtain Udyam Registration?
To obtain Udyam registration following steps should be followed:
- We at Taxology help you get the Udyam registration in India in a completely paperless manner.
- A business consultant reaches to you first and understands your requirement.
- The Consultant will explain the whole process and brief you about the documents that are documents required to obtain the Udyam registration in India.
- Once the documents are collected and payment is initiated. A relationship manager is allocated who further carries out the process of registration.
- Our Relationship managers make sure that the process is seamless by regular follow-ups and proper consultation.
Benefits of Udyam Registration
What are the Benefits of getting Udyam Registration in India?
- Udyam Registration has simplified the process of registering the business under MSMEs but there are also some additional benefits to it.
- Bank Loans can be availed at a lower rate of interest in some cases the loans can also be availed without the collateral or mortgage.
- The applicant is eligible for receiving government subsidies.
- The applicant gets the financial support to participate in foreign expos to showcase their products.
- Udyam registration also helps in reducing the cost of setting up the business and even patenting.
- There are also various tax rebates and exemptions for small and medium-sized enterprises that have Udyam registration.
- There are tariff subsidies that can be availed with capital and government subsidies.
- Licenses, approvals, and registration become more comfortable with UdyamAadhar registration.
Udyam Registration Plans
All Inclusive Pricing – No Hidden Fee
General questions
Yes, Aadhar is mandatory for obtaining the Udyam registration.
The user will have to provide their 12 digit Aadhar number, PAN Card, and the bank account details of the business for the registration process.
The NIC code is a business code that is provided by the government to track the business proceedings for the organization under the micro, small and medium enterprises.
The Udyam Registration certificate provides the companies registered under the Udyam special access to the schemes by the government. The Udyam Registration directly links enterprises with the government database.
The processing is dependent on the submission of the documents by the client.
The documents and details should be up to date to avoid any chances of rejection.
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