The MSME Udyam Registration Certificate is one of the most essential certifications out there if you own an enterprise or business that hasn’t fully developed into a large-scale business yet. MSMEs (Micro, Small, and Medium Enterprises) are one of the most integral parts of our economy. They form up a significant part of the business world and the various industrial sectors around the country.
Registering your company or business as an MSME and obtaining the Udyam Registration Certificate has tons of benefits and advantages backing it. The best thing is that most of the businesses out there can avail the benefits of this registration, such as the manufacturing industry or even the service sector. Registering as an MSME (Udyam) has various benefits, including better taxation, better business setup, and better loan facilities.
To ensure that your business qualifies as an MSME, there are various eligibility requirements that you need to check and know the registration procedure well before you even attempt to register for the certificate. Since most business owners aren’t aware of these requirements and procedures, we are here to help you out in this detailed guide about the MSME Udyam Registration Certificate.
Let’s find out what the Udyam Registration Certificate actually is, which businesses qualify as MSMEs, what benefits does a business gets after obtaining the Udyam Certificate, and also how to register for the certificate.
Eligibility for the MSME (Udyam) Certificate
To qualify either as a Micro, Small or Medium Enterprise, your business needs to have an investment amount and annual turnover that is below the minimum threshold for each enterprise.
To be more precise, here are the exact figures you will need to generate under if you want your business to qualify as an MSME –
- Micro enterprises – To qualify as a micro-enterprise for MSME registration, your business needs to have an investment amount of less than Rs. 1 crore and an annual turnover of less than Rs. 5 crores.
- Small enterprises – To successfully qualify as a small enterprise for registering your businesses as an MSME, your business needs to have an investment amount of less than Rs. 10 crores and an annual turnover of less than Rs. 50 crore.
- Medium enterprises – The largest and most vast enterprise in this list, to qualify as a medium enterprise for MSME registration, you need to ensure that you have an investment of less than Rs. 50 crore and an annual turnover of up to, or less than, Rs. 250 crore.
If your business qualifies for any of the above requirements, you can sign up for an MSME registration right away without any problem.
What Documents Required for Udyam Registration Certificate?
If you wish to register to apply for an MSME Certificate, there are certain documents that you need to gather with you to do so. These documents are –
- Application form filled with all required personal and business details and passport-sized photographs.
- KYC documents for applicant verification such as a voting card, Aadhar card, driving license, or a utility bill that has your address on it.
- PAN Card for business use.
- Certificate of business establishment.
- Income documents such as an income certificate.
- All necessary and essential bank details.
- All the bank statements from the last six months.
- Agreement of rent or lease, if applicable.
- NOC is given by the landlord.
- Any other necessary documents that the bank may deem important.
After you gather all these documents with you, all you need to do is go to the assigned website and file for the Udyam Registration Certificate.
How to Apply for Udyam Registration Certificate?
The procedure to apply for an MSME Udyam Registration Certificate is straightforward and doesn’t require you to take much effort.
- All you need to do is go to udyamregistration.gov.in and register as a new user there. Be sure to have your Adhar and PAN card at hand because the website asks for their numbers as the first thing for your account verification.
- You will be asked to validate each of your card numbers by entering the OTP you get on your phone number once you fill in your Adhar and PAN details.
- The next thing you need to do is choose what type of business organization or enterprise your business has, along with the Business PAN number that you have attached to your business accounts.
- Once the verification is done, the website will ask you to fill in your personal details in the form, and the details of the business or industry you are running. Ensure that you double-check everything thoroughly, as one single mistake can cause your form to be sent back to you.
- After you fill your form, the website will verify your phone number or email by a final OTP and send your form for verification by the agency. The verification process may take a while, so be patient during the process
Once your form is verified by the authorities and they are satisfied with it, you will be duly informed, and your MSME Udyam Certificate will be issued, which you can then download from the website.
Benefits of the Udyam Registration Certificate
There are several benefits to having an Udyam Registration Certificate that makes getting it worth your while for your business and enterprise. These benefits are –
- Facilitates access to loans that have lower interest rates.
- Assists you in getting your business government tenders.
- Helps you get business licenses, business approvals, and account registrations much more easily.
- Compensates you of all the amount that you may have spent on ISO certificates.
- The overall cost of setting up your company or filing for a patent decreases drastically.
- Registered companies under the MSME certificate get various subsidies on tariffs, tax, and capital.
- Your company can get a 15% subsidy if you import fully automatic machinery under your bank loan.
- Your company gets all exemption from all sorts of Direct Tax Laws.
As you can see, obtaining a Udyam Registration Certificate has tons of benefits attached to it, but it is necessary that you know the eligibility requirements and documents required for getting the Udyam Registration Certificate. We hope this article was insightful for you.