The Union Ministry of Micro, Small, and Medium Entities (MSME) informed the new definition of MSME, along with its new name Udyam Registration, and created a new portal named UDYAM Registration Portal in a notification dated June 26, 2020. Small businesses are likely to have a number of questions about UDYAM Registration because it is a relatively new site. The ten most prevalent ones are covered in this article.
Frequently Asked Questions about UDYAM Registration:
- Is it necessary to register for UDYAM?
MSMEs may file UDYAM Registration, according to a notification released by the Ministry of Micro, Small, and Medium Enterprises on June 26, 2020. MSME registration is optional and at the discretion of the MSME.
- How long does the UDYAM Registration certificate last?
The validity of the registration certificate is not clearly mentioned in the Act or in ministry-issued notices on the new registration portal. As a result, it’s safe to assume that the registration will be valid for as long as the company remains and that there will be no need to renew it. Companies must, however, update all relevant information on the new site, including PAN and GST, on or before the deadline.
- What is the difference between UDYAM Registration and Udyog Aadhar?
The following are some of the key differences between Udyog Aadhar and UDYAM Registration:
- Only the applicant’s Aadhar Card, PAN, and self-certification based on the old MSME criteria are required for Udyog Aadhar. According to the new MSME definition, UDYAM Registration requires simply the Aadhar Card and validated certification.
- Government portals such as TReDS, GeM, and others do not integrate with Udyog Aadhar. UDYAM Registration, on the other hand, is fully integrated and recorded throughout the registration process.
- You can apply for Udyog Aadhar even if you don’t have access to the Aadhar Mobile Link Facility. UDYAM Registration, on the other hand, merely requires an Aadhar Card connected to a mobile phone.
- In comparison to UDYAM Registration, which has a longer form and requires income tax and GST details for the registration procedure, Udyog Aadhar has a shorter form.
- You can use the same Udyog Aadhar number to register several businesses. However, you can only register with one Aadhar Card Person Applicant for UDYAM Registration.
- Is there a difference between UDYAM and MSME?
Yes. MSME Registration is another name for UDYAM Registration. It is a government registration that recognizes small and medium businesses and comes with a recognition certificate and a unique number.
- How can I obtain a certificate of UDYAM Registration?
What is the procedure for obtaining a UDYAM Registration Certificate? The three-step procedure for obtaining a UDYAM Registration Certificate is rather simple. The following is information on how to obtain a UDYAM Registration Certificate.
- To apply for UDYAM Registration online, go to www.udyamregister.org.
- After you submit your application in accordance with the rules, you will be assigned a UDYAM Registration Number (permanent identity number).
- Your company will receive the UDYAM Registration Certificate after the registration process is completed.
- Is UDYAM Registration subject to GST?
On and after December 31, 2021, firms wanting to register under the Act must have a PAN and a GSTIN, according to a notification dated June 26, 2020. If the company does not obtain a PAN and GSTIN by December 31, 2021, it is status as a Micro, Small, and Medium Enterprise will be suspended.
- How long does it take to register for UDYAM?
How long does it take to register for UDYAM? The issue of the UDYAM Registration Certificate usually takes four to five days after the application is submitted. You’ll receive an email notification with your certificate’s UDYAM Registration Number. However, depending on the circumstances, the UDYAM Registration procedure may take longer than 15 days to complete.
- What are the advantages of registering with UDYAM?
The following are some of the advantages of registering with UDYAM:
- According to state laws, you may be eligible for octroi and tax concessions.
- Get a 1% interest rate reduction on your overdraft.
- Take advantage of the excise exemption program.
- Easy bank mortgages and bank business loans are available.
- Get a discount on bank loan interest rates.
- Obtain a discount on bar code registration.
- Get a discount on your electricity bills.
- Obtain protection from late payments and materials/services provided.
- CLCSS becomes available to MSME-registered businesses (Credit Linked Capital Subsidy Scheme)
- Get a break when applying for government contracts.
- Take advantage of tariff, tax, and capital subsidies as a registered UDYAM.
- Claim a stamp duty and registration fee exemption.
Suggested Read- udyam registration benefits in hindi
- Who is eligible to register for UDYAM?
Proprietorships, Hindu Undivided Families, Co-operative Societies, Companies or Undertakings, Trust or Partnership Firms, and Associations of Persons, by whatever name, are eligible for registration as MSME under Section 7 of the Act and the Notification dated 26 June 2020. The government hopes to make all of its benefits available to a greater segment of society by allowing all major types of businesses to register.