For enterprises and businesses that haven’t yet developed into large-scale businesses, the MSME Udyam Registration Certificate is an essential certification. Micro, Small, and Medium Enterprises (MSMEs) are integral to our economy. A significant portion of the country’s business world and industry is made up of them.
You can gain a lot of benefits and advantages by registering your company or business as a MSME and obtaining the Udyam Registration Certificate. The best thing about this registration is that it can benefit most businesses, regardless of whether they are in the manufacturing sector or the service sector. MSME (Udyam) registration has numerous benefits, such as better tax treatment, better loan facilities, and better business setup.
MSME certification requires that you check a number of eligibility requirements and know the registration procedure well before attempting to apply. Due to the fact that most business owners are unaware of these requirements and procedures, we have provided a detailed guide about MSME Udyam Registration Certificates to help you out.
Here is what the Udyam Registration Certificate actually is, what businesses qualify as MSMEs, what benefits a business receives after obtaining the Udyam Certificate, and how to register.
Eligibility for the MSME (Udyam) Certificate
You must have an investment amount and an annual turnover below the minimum threshold for each enterprise type in order to qualify as a Micro, Small, or Medium Enterprise.
If you want your business to be considered an MSME, you must achieve the following figures:
- Your business must have an investment amount of less than Rs. 1 crore and an annual turnover of less than Rs. 5 crores to qualify for MSME registration.
- MSME registration requires an investment amount of less than Rs. 10 crores and a turnover of less than Rs. 50 crores to qualify as a small enterprise.
- To qualify as a medium enterprise for MSME registration, you need 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.
Can you tell me what documents are required for the Udyam Registration Certificate?
There are certain documents that you need to gather before applying for an MSME Certificate. The documents are as follows:
- Fill out the application form with all required personal and business information. Attach a passport-sized photograph to the form.
- Voting cards, Aadhar cards, driving licenses, and utility bills with your address are all KYC documents.
- For business use, you need a PAN card.
- The certificate of establishment of the business.
- An income certificate is an example of an income document.
- Bank details that are essential and necessary.
- Six months’ worth of bank statements.
- The agreement of rent or lease, if applicable.
- Landlords give NOCs.
- The bank may require other documents as well.
The Udyam Registration Certificate can be obtained online at the assigned website after you gather all these documents.
What are the steps to applying for an Udyam Registration Certificate?
In order to obtain an MSME Udyam Registration Certificate, you needn’t take much time or effort.
- All you need to do is register as a new user at udyamregistration.gov.in. The website will ask you for your Adhar and PAN number during registration.
- After entering your Adhar and PAN details, you will be asked to validate each card number by entering the OTP you receive on your phone.
- Following that, you will need to determine the type of business organization or enterprise your business has, along with the Business PAN number that you have attached to your accounts.
- You will then have to fill in your personal details and the details of the business or industry you run after the verification process is complete. Make sure you double-check everything, as one mistake can result in your form being returned.
- When you fill out your form, the website will verify your phone number or email by an OTP and send it to the agency for verification. Be patient during the verification process since it may take some time
Your MSME Udyam Certificate will be issued after your form is verified and approved by the authorities. You can then download it from the website once it has been approved.
Benefits of the Udyam Registration Certificate
It is worth your while to get an Udyam Registration Certificate for your business and enterprise due to several benefits it provides. Among 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.
In conclusion, obtaining a Udyam Registration Certificate has tons of benefits, but it is necessary to know the eligibility requirements and the documents needed. I hope this article was insightful for you.