MSME Registration Overview

The government has introduced the new Udyam Registration to replace the older MSME and Udyog Aadhar registrations from July 1, 2020 onwards. Organizations which are engaged either in manufacturing or production or processing or preservation of Goods OR in the providing or rendering of services are eligible for registration under the new Udyam Registration. In other words, the enterprises which are engaging only in trading i.e. buying, selling importing, exporting of Goods are not eligible for applying for Udyam Registration.
The applicability of the Udyam registration is for Micro, small and medium sized organizations

All establishments/ organizations currently registered under EM-Part II (Entrepreneurs Memorandum) or UAM (Udyog Aadhar Memorandum Portal) need to get them re-registered on Udyam Registration Portal w.e.f. July 1, 2020 to avail the various benefits offered.

What is MSME Registration?
Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online. The application is based on self-declaration with no requirement to upload documents, papers, certificates or proof. However, the registering person needs to provide certain details regarding the business like investment value, nature of business among others.

On registration, an enterprise will be assigned a permanent identity number to be known as “Udyam Registration Number”. An e-certificate, namely, “Udyam Registration Certificate” shall be issued on completion of the registration process. Aadhar Number is required to initiate the registration process as below:

The Aadhaar number shall be of the proprietor in the case of a proprietorship firm, of the managing partner in the case of a partnership firm and of a karta in the case of a Hindu Undivided Family (HUF).
In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organization or its authorized signatory shall provide its GSTIN and PAN along with its Aadhaar number.

Documents Required For MSME
No documents are required to be uploaded on the Govt. portal as part of the registration process. However, an enterprise will be required to provide the following details for Udyam Registration application. The details required shall be as below:

1. PAN Number of enterprise
2. GST Number of enterprise
3. Bank Account details of the enterprise
4. Turnover of the enterprise over the last 2 years
5. Written Down value of investment made in the business
6. Address of the business
7. Type of Income tax return filed in the previous year
8. Date of incorporations/ commencement of business
9. Nature of business activity being carried out
10. No. of persons employed by the enterprise along with their gender

Benefits Of MSME Registration
Some of the benefits available post registrations under Udyam aresummarized below. Apart from those listed below, there are many other benefits provided by the different govt. bodies for specific industries.

After registering under Udyam, the applicant will receive the benefits of all the government schemes such as an easy loan, loan without guarantee, loans with subsidized rates of interest etc.
The applicant will receive financial support for participating in foreign expos to showcase their products.
Registration would facilitate hassle-free opening of current bank accounts in the name of the business.
It would also allow businesses to apply for government micro business loans and other such related beneficial schemes.
With the recent thrust on development of MSMEs by Govt of India, registration under Udyam has become very important. The primary reason is the ability to avail the benefits being provided by the Govt.