Udyam Registration
Udyam Registration is a process for registering Micro, Small and Medium Enterprises (MSMEs) in India. It is a nationwide, online portal launched by the Ministry of Micro, Small and Medium Enterprises (MSME) in 2020. Previously known as MSME Registration or Udyog Aadhaar, Udyam Registration simplifies the registration process and eliminates the need for multiple registrations with different authorities.
Suppose any enterprise surpasses the previous amount of investment and turnover. In that case, it will be moved to the next category of MSME. To categorise any business into a micro, small or medium enterprise, it is important to take into consideration the total investment and turnover of all the units registered under the same pan number.
Types of Udyam Registration:
There are three categories of MSME registration based on certain business factors, such as investments and turnover. These are :
- Micro Enterprises: Enterprises where investment < ₹1 crore and turnover < ₹5 crores.
- Small Enterprises: Those whose investment < ₹10 crores and turnover < Rs 50 crore
- Medium Enterprises: Those whose investment <Rs. 50 crore and yearly turnover < 250 crores.
To calculate a firm’s investment the previous year’s income tax returns are considered. Suppose no ITR is available (which is the case in new enterprises). In that case, the self-declaration of the proprietor will be the basis for the calculation of an investment.
While calculating the turnover of an enterprise, exports of goods and services will not be considered.
Documents Required for Udyam Registration
In the list of documents that are required for Udyam registration online, the elements required are as follows-
- Aadhaar card
- Pan card
- Bank account details
- Business address
- Details of business activities
- Information of the investment (plant, equipment, machinery)
- Information on the turnover
- Duplicates bill of sale and purchases
- Partnership deed (if any)
- NIC code of 2 digits
- Copies of bill and license of the machinery purchased
- Details of the applicant such as mobile number, email address, etc.
- Certificate of disability (if any)
- Miscellaneous information such as the number of employees, Social category, etc.
Our friendly team is ready to help you.
We’ll answer your questions and guide you to choose the right license for your business.
Contact us today and you start your business journey.
