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How can be an enterprise classified as micro, small or medium enterprises? What are the benefits of Udyam registration? |
What is Udyam registration?
Udyog Aadhar or Udyam registration is a twelve digit Unique Identification Number which is provided by the Ministry of Micro, Small, Medium enterprises in India. Earlier it is known as Udyog Aadhar but now it is named as Udyam registration.
How can be an enterprise classified as micro, small or medium enterprises?
An enterprise can be classified as a micro, small or medium enterprises on the basis of following criteria:
- In micro enterprise, investment in plant and machinery or equipment does not exceed 1 crore rupees and turnover does not exceed 5 crore rupees.
- In small enterprise, investment in plant and machinery or equipment does not exceed 10 crore rupees and turnover does not exceed 50 crore rupees.
- In medium enterprise, investment in plant and machinery or equipment does not exceed 50 crore rupees and turnover does not exceed 250 crore rupees.
What are the benefits of Udyam registration?
The advantages of Udyam registration are as follows:
- In Udyam registration, concession is provided in electricity bills.
- Subsidy is provided in bar code registration.
- NSIC performance and credit ratings.
- 50% subsidy is provided for patent registration.
- 100% collateral free loans from all banks.
- Reduction in interest rates from all banks.
- Under Udyam registration special consideration is given on International Trade fairs.
How to register in Udyam?
Any person who wishes to establish an MSME will have to register as Udyam online.
The processes by which you can register your Udyam Company are as follows:
Step 1: Firstly, you have to visit Udyam Registration portal on the web page.
Step 2: After visiting portal you have to fill all the information on Udyam Registration form.
Step 3: After entering the details make the online payment.
Step 4: One of your Udyam Registration consultants will process your Udyam Registration Application.
Step 5: In 1-2 working hours you will receive your Udyam Registration e- certificate in your registered e- mail ID.
Who can get Udyam registration?
Organizations which are involved in manufacturing or producing or processing or preservation of goods or in providing services are eligible to get Udyam Registration and should also follow the criteria set for classifying medium, small or micro enterprise.
Document requirement for Udyam registration
- Copy of MOA and AOA/ partnership deed/ trust deed depending on the business entity.
- A copy of license/ clearance such as from Electricity Board Municipal Corporation.
- Copy of purchase or sales bill.
- Bills of machinery.
- Business address proof. i.e.
- Telephone number, mobile number, electricity bill, gas bill (less than 2 month old)
- In case of rented premises a notarized copy of rent agreement with a No- objection certificate (NOC) for conducting business.
- In the case of self-owned premises registered title document.
