Udyam Registration
Udyam Registration or MSME Registration is the new process for registering MSME (micro, small and medium enterprises) launched by the Ministry of Micro, Small & Medium Enterprises on July 1, 2020. The Ministry had also revised the definition of MSMEs from the same date. An enterprise for this process is known as Udyam, and its Registration Process is known as Udyam Registration. A permanent registration number along with a recognition certificate will be issued after Registration.
The Udyog Aadhaar registration has been transformed to the Udyam registration since July 2020. Udyam registration has made the process more accessible than it was earlier, at the time of Udyog Aadhaar registration. Udyam registration is essential for availing the various benefits of schemes or programs of the Ministry of MSME, such as the Credit Guarantee Scheme, public procurement policy, additional edge in Government Tenders and protection against delayed payments, etc.
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Udyam Registration Benefits
Who can apply for Udyam registration?
Any person who aspires to establish a micro, small, or medium enterprise can avail of Udyam Registration.
Proprietorships, Hindu Undivided Family (HUF), Partnership Firm, One Person Company, Private Limited Company, Limited Company, Producer Company, Limited Liability Partnership, any association of persons, co-operative societies, or any other undertaking can obtain MSME Udyam Registration in India.
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Revised MSME definition – The Atamnirbhar Bharat package
After 14 years since the MSME Development Act, a revision in the MSME definition was announced in the Atmnirbhar Bharat package on 13.05.2020 to bring more units under the purview of the schemes announced. According to this package, the composite criteria for the definition of MSME are investment and turnover; the limit has been revised upwards. The distinction between the service and the manufacturing sector has also been eliminated.
For better understanding, go through the table attached here:
| Composite Criteria: Investment in Plant / Machinery and Turnover | |||
| Sl.No | Type of Enterprises | Investment | Turnover |
| 1 | Micro enterprises | Less than Rs.1 Crore | Less than Rs.5 Crore |
| 2 | Small enterprises | Less than Rs.10 Crore | Less than Rs.50 Crore |
| 3 | Medium enterprises | Less than Rs.20 Crore | Less than Rs.100 Crore |
MSME Registration FAQ's
Anyone wishing to establish a micro, small, or medium enterprise can apply for Udyam Registration.
The Registration for MSMEs under Udyam Registration Portal is entirely online, and there is no fee for MSME registrations. It is free of cost.
The registration process can be tedious and time-consuming, but IndiaFilings can help you make it easier. With our assistance, you can quickly get your Udyog Aadhar/Udyam Registration done with minimal effort and hassle.
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.
One can add a maximum of 10 NIC codes for Udyam registration.
Udyam registration is the latest Registration procedure for the Micro, Small, and Medium Enterprises (MSME), launched on July 1, 2020, by the government to ease the registration process.
Anyone intending to establish micro, small, or medium enterprise may apply online. for Udyam registration.
Earlier, the MSME registration covered only manufacturing and service industries. The scheme does not cover trading companies. However, in July 2021, the government announced that the wholesale and retail trade would come under the MSME classification and thus can apply for their wholesale/retail business registration.