The Udyog Aadhar Registration is presently called under the name of Udyam Registration. This registration has made it a simple process for startups and MSME companies, where we can easily register you as a udyam company. Moreover, this organization's registration will give you more incentives to enjoy government schemes.

Today we will provide you full information regarding how to do Udyam Registration for Startup Companies in this short guide. So, to learn more about it in-depth, read our full blog post.

Meaning of Udyam Registration

Udyam Registration is a kind of government registration issued with a certificate of recognition and a unique number known to certify MSMEs as the Udyam Registration Number (URN) and is generally called MSME registration.

The main goal of Udyam Registration is to explain the time-consuming and complicated registration process under Micro Small and Medium Enterprise (MSME). Udyam Registration of Ownership, Partnership Corporation, Limited Liability Partnership (LLP), or a Private Limited Company can be used for any kind of organization.

What is the Udyam Aadhar Registration Process?

Follow these simple five steps for Registering under Udyam Aadhar Registration:-

Step 1: Visit the Udyam Registration Portal.

Step 2: Fill the Udyam Registration form with the correct details.

Step 3: Make the payment online for your Udyam Application.

Step 4: One of our registration executives will process your Udyam application.

Step 5: Get your Udyam Registration Certificate at your registered email address in a few working hours.

Why Udyam Registration is needed?

As the name suggests, Udyam Registration is government registration for Micro, Small, and Medium Enterprises. It is the simplified, online procedure for providing certification to small and medium enterprises which replaced Udyog Aadhaar registration. Udyam Registration portal was launched by the Ministry of MSME, as of 1st July 2020.

A recognition certificate is provided along with the unique identification number after the registration. The permanent identification number can be further used for getting government reservations for other government plans.

Now, you can sit at home and register your Enterprise with a few clicks without any hassle. You just have to attach the necessary documents and register with us online!

What is MSME Registration?

MSME also known as Micro, Small, and Medium Enterprises is an abbreviation used for small-scale industries in India. It is one of the emerging sectors in India which has created many job opportunities for the masses as a highly vibrant and dynamic sector of the Indian economy.

The MSME industry had a major contribution towards alleviating the poverty of the nation. These industries have created the largest opportunities for the unskilled, fresh graduates, and the underemployed masses.

What are the features of Udyam Registration Online?

These are some of the features of the Udyam Registration.

• Udyam registration is fully online, paperless, and based on self-declaration.

• Only an Aadhar number and PAN card are required.

• Registration can be done only once.

• Other activities relating to the enterprise should be mentioned under one Udyam Registration number if the enterprise is involved in more than one activity.

• The old Udyog Aadhar can be renewed to the new Udyam Registration by verifying the Aadhar/ PAN data.

• These points are further described for your convenience:
  
  
  

• Easy availability of Government tenders

• Registering with Udyam increases the preference for Government tenders. Under the Public Procurement Policy, the firms registered under MSMEs need not deposit Earnest Money Deposit/ security money before participating in any Government projects/bids. This helps in getting government tenders/projects free of cost.
  Easier access to credits at lower interest rates

• The MSMEs can easily get credit from various banks at low-interest rates. Various Banks have introduced a borrower-friendly feature for MSME loans on their official portal where the borrower can easily borrow the MSME loans and repay them within flexible tenure. Different banks offer different interest rates on working/ capital loans.
  SIDBI (Small Industries Development Bank of India) is another financial institution that finances and regulates the Micro, Small, and Medium Enterprises of India. It helps the MSMEs get easy credits for their business requirements. It also conducts various promotion & development programs for the development of rural enterprises.
  Deduction in Tax

• Earlier the entities with investment up to Rs. 10 crores were medium enterprises and for services the limit was Rs. 5 crores. Later the definition of MSME was changed on the basis of the investments and turnover, during the financial year 2020-21. This has relieved many MSME companies from paying taxes.
  Tax holiday expansion for start-up companies

• The tax holiday is an incentive program started by the Government for a period of time when the firms do not have to pay taxes or pay reduced taxes. As per the Union Budget 2021, the tax holiday for startups had been extended till March 2022. Further, the startups are relaxed from the payment on the capital gains in order to incentivize the funding.
  Stamp Duty

• Stamp duty is the tax levied on the sale/purchase of the property. The Stamp Duty has to be paid by the buyer of the property to become the legal owner of the property. Since Stamp duty is comparatively high in India the MSMEs are exempted from payment of Stamp duty.
  Reduction of corporate tax

• Corporate tax or company tax is a direct tax imposed on the income of the company by the Government. The corporate tax for new companies in the Manufacturing sector has been reduced to 15% to incentivize investment in the Small Scale industries. Whereas for the existing companies the corporate tax has been reduced to 22%.
  Relief from a tax audit

• Tax Audit is when the IRS (Indian Revenue Service) examines the tax returns of the firm to verify the accuracy of the income and deductions of the firm. Such audits are done to ensure there are no fraudulent practices.
  The tax audit is mandatory for the business whose turnover exceeds the value of Rs. 1 crore and for other professions whose total income exceeds Rs. 50 lakhs in any previous year.
  As per the Union Budget 2020, the turnover threshold for MSMEs has been increased from Rs. 1 crore to Rs. 5 crores which has reduced the burden of tax audits for many MSME companies.
  Goods and Services Tax (GST)

• GST is the Goods & Services tax imposed on the supply of goods and services in India. The MSME sector has been given special registration provisions based on turnover. These small and medium enterprises are not required to obtain GST registration:

• Persons involved in the intra-state taxable supply of goods, if the aggregate turnover/sale for a given financial year does not exceed Rs. 40 lakh (Rs. 20 lakh for states like Telangana, Uttarakhand, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, and Tripura)

• 
  Persons involved in the inter-state taxable supply of services, if the aggregate turnover for a given financial year does not exceed Rs. 20 lakh (except for the states like Manipur, Mizoram, Nagaland, and Tripura, the turnover limit is Rs. 10 lakh)

• Awareness of Intellectual Property Rights

• Intellectual Property Rights are the rights given to persons over the creation of intellectual property. The most well-known intellectual properties include copyrights, patents, trademarks, and trade secrets.
  This scheme was initiated by NMCC (National Manufacturing Competitiveness Council) to spread awareness on Intellectual property rights among MSMEs. Under this scheme, various interactive seminars/workshops have been conducted along with financial assistance to promote intellectual property rights awareness.
  Power Tariff Subsidy

• The Haryana Government has initiated this scheme under Haryana Enterprises and Employment Policy 2020 to provide affordable power supply to MSME industries at Rs. 2 per unit. The MSME industries located in Haryana will benefit from this scheme. The Haryana Bijli Vitran Nigam will deduct the subsidy amount in the electricity bills for the MSMEs.
  Marketing Support (Barcode)

• Barcode is an advanced method for quick identification of products which is hugely used by Retail Stores and small outlets for payments. With the increased usage of Barcode, the Government has launched a scheme to give financial support to the budding Small & medium entrepreneurs by reimbursing 75% of the fees on one-time registration.
  Collateral free loans

• Credit Guarantee Fund for Micro and Small Enterprises scheme was launched by the Government to provide collateral-free credit facilities to new and existing micro and small enterprises.
  The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India, and Small Industries Development Bank of India started a trust called CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) to provide easy collateral-free loans to the SME (Small and Medium Enterprises) from eligible financial institutions. This Scheme provides guarantee cover for the loan provided to the MSME by the financial institutions.
  Access to online marketplace (GeM)

• GeM(Government e-Marketplace) is an online portal to provide easy procurement of commonly used goods & services required by various Government Departments/Organisations/PSUs. Of all the sellers and vendors registered on Government e-Marketplace, 26% approximately are MSMEs. MSMEs can register themselves easily with GeM and enjoy their benefits without having to deal with intermediaries.
  Registration with e-SAMADHAAN Portal (a portal to address issues relating to delayed payments)

• Whereas, MSME Samadhan is an online portal created by the office of Development Commissioner (DC-MSME), Ministry of Small and Medium Enterprises (MSME) where Micro and Small Enterprises (MSEs) can lodge their complaints regarding delayed payments and will be given quick and just resolution for the settlement of the disputes regarding delayed payments between the buyers and the sellers.
  Protection from late payments

• As per MSMED Act, any delay in payment to the Micro, Small, and Medium Enterprises would cause a heavy penalty to the buyers. The MSMEs can file their complaints related to delayed payments on the e-SAMADHAN portal. The disputes regarding delayed payments will be further examined by the Micro and Small Enterprises Facilitation Council (MSEFC).
  Exemption from payment of Security Deposit for Government Tenders

• According to the revised rule 170 of General Financial Rules(GFR) 2017, the MSMEs will be exempted from submission of bid security (earnest money). The MSMEs registered under Udyam and NSIC can participate in government tenders without paying the Earnest Money Deposit. The government bids can help the MSMEs work on large projects which will enhance the growth and reputation of the enterprise.