If you’re a small business owner in India, getting your Udyam Registration Number is essential. It’s not just a legal requirement but also offers numerous benefits for your business. In this beginner’s guide, we’ll walk you through the process of obtaining your Udyam Registration Number in simple terms.
What is Udyam Registration?
Udyam Registration is a government initiative aimed at promoting and supporting small businesses in India. It replaced the previous system of MSME registration and is governed by the Ministry of Micro, Small, and Medium Enterprises.
Why is it Important?
Obtaining your Udyam Registration Number comes with a host of benefits:
- Access to Subsidies and Schemes: Registered businesses are eligible for various government subsidies, incentives, and schemes aimed at supporting small enterprises.
- Easy Access to Credit: Banks and financial institutions often provide easier access to credit for registered businesses, facilitating their growth and expansion.
- Preference in Government Tenders: Many government tenders give preference to registered MSMEs, opening up new avenues for business opportunities.
- Protection Against Delayed Payments: Registered businesses enjoy protection against delayed payments under the Micro, Small, and Medium Enterprises Development Act.
Who is Eligible?
Any business entity that falls under the definition of micro, small, or medium enterprise can apply for Udyam Registration. The criteria for classification are based on investment in plant and machinery or equipment and turnover.
- Micro Enterprise: Investment up to Rs. 1 crore and turnover up to Rs. 5 crore.
- Small Enterprise: Investment between Rs. 1 crore to Rs. 10 crore and turnover between Rs. 5 crore to Rs. 50 crore.
- Medium Enterprise: Investment between Rs. 10 crore to Rs. 50 crore and turnover between Rs. 50 crore to Rs. 250 crore.
How to Obtain Udyam Registration?
Now, let’s break down the process into simple steps:
Step 1: Registration
Visit the official Udyam Registration Online portal and click on the “New Registration” option. Fill in the required details such as Aadhar number, PAN card details, business name, address, etc.
Step 2: Verification
After filling in the details, click on the “Submit” button. The portal will then verify your Aadhar number through OTP verification.
Step 3: Confirmation
Once verified, you’ll receive your Udyam Registration Number along with a certificate of registration. You can download and print the certificate for your records.
Documents Required
Make sure you have the following documents ready before starting the registration process:
- Aadhar card of the applicant
- PAN card of the business entity
- Business address proof
- Details of the business activities
- Bank account details
Related read:- Udyog Aadhaar Number (UAN)
Conclusion
Obtaining your Udyam Registration Number is a crucial step for any small business in India. It not only provides legal recognition but also opens up a world of opportunities in terms of government benefits and business growth. Follow the simple steps outlined in this guide, and get your business registered today to unlock its full potential.
