All You Need To Know About MSME/Udyog Aadhar Registration Online in 2022

Rules, regulations, and legislation of micro, small, and medium enterprises in India are developed and implemented by the Ministry of Micro, Small, and Medium Enterprises, an executive arm of the Indian government.

What is MSME?

MSMEs produce a little over 8% of the nation’s GDP, about 45% of the nation’s manufacturing output, and about 40% of the nation’s exports. They serve as the foundation of the nation’s economy.

Udyog Aadhar Registration

MSME Udyam registration or Udyog Aadhar registration is an internet-assisted self-declaration with no need to upload documents, evidence, or images. Getting an Aadhar number is the other prerequisite for businesses to register.

Classification of Enterprises Based on Investment and Turnover

If an organization meets the following criteria, it will be classed as a micro, small, or medium-sized business and receive an Aadhar Udyog registration.

A micro-enterprise has a plant and equipment investment of less than 1 crore rupees and an annual turnover of at least 5 crores.
A small enterprise is one whose annual revenue is less than 50 crore rupees and whose investment in plant and equipment is less than 10 crore rupees.
A medium-sized enterprise is one whose annual turnover is at most 250 crore rupees and whose investment in plant and equipment is at most 50 crore rupees.

Starting a micro, small, or medium-sized enterprise

Anyone looking to start a micro, small, or medium-sized business can submit their Udyog Aadhar registration online through the Udyam registration site with self-declaration support without uploading any certificates or other paperwork.
Upon registration, a business (referred to as a “Udyam” within the Udyam Registration system) is given a permanent positive identity known as an MSME Udyam registration number.
An electronic certificate called an “MSME Udyam Registration Certificate” is produced after the registration process is complete.
It is how a business can submit an online application for Aadhar Udyog registration or Udyog Aadhar registration.

The eligibility criteria for MSME Registration Online in India

The Aadhaar Card and the PAN Card are the sole documents needed for MSME registration online. There is no need for any additional documentation for the MSME registration process, which is entirely online. The PAN and GST-related data on investments and revenue of businesses would be automatically generated through the Udyam Registration Portal from government databases. The Udyam Registration Portal has been fully connected with GSTIN and Income Tax.

MSME Registration Process

For new business owners who do not yet have an EM-II or MSME registration

MSMEs can profit from several things. However, you must register your company on the UAM (Udyog Aadhaar Memorandum) platform to use these advantages.

You can now find out how to apply for MSME registration online. Following these steps will register an MSME:

Go to the government website (UAM portal) to fill out the form.
Click the first link on the page, “For New Businessmen who aren’t Already Registered as MSME/Those with EM-II,”
Enter your name and Aadhaar number, then click “Validate & Generate OTP.”
Once the verification is done, submit the PAN information and the organization type.
If there’s no option of PAN, select the “No” option.
Now, fill in the information in the form’s fields 5 through 24.
To properly submit the form, enter the OTP sent to your phone number and the verification code.
After successful MSME registration online, a “Thank You” message with the registration number will appear on your screen.
After successfully submitting the application form, approval and registration will take 2-3 days.
Your MSME registration online will be done upon application approval, and you will receive the MSME registration certificate through email.

MSME registration online process for the businessman who already has Udyog Aadhaar Memorandum

Go to the government portal (UAM portal) to complete the form.
Select “For those who are registered as UAM” from the “For those who are registered as UAM by Assisted filing” tab.
Enter your Udyog Aadhaar number, choose the OTP option, and then click “Validate & Generate OTP” on the following screen.
Enter the OTP sent to the email address or mobile number registered with UAM.
Please fill out the MSME registration form with the necessary information, then submit it.
Within a few days of submitting the registration form successfully, the registration and approval will be accomplished.
You will receive an email with your MSME certificate when your application is accepted.

MSME Registration Fees Online

MSMEs can register without cost on the government portal. Enterprises holding UAM registration must switch to Udyam Registration as of June 30, 2022. Entrepreneurs’ UAM registrations will expire on June 30, 2022, and they will only be eligible for MSMEs-specific incentives if upgraded to Udyam Registration. They must re-register with Udyam to receive MSME benefits.

Benefits of MSME Registration/Udyog aadhar registration Online

The following are some advantages of MSME registration online:

Bank loans will have the lowest interest rates available to you. The interest rate is roughly 1% to 1.5% less than the standard loan interest rate.
Additionally, you can profit from tax advantages by claiming credit for MAT (minimum alternate tax), which is available for up to 15 years.
You can benefit from several government programmes, including the Credit Linked Capital Subsidy Program, the Credit Guarantee Program, the Protection Against Delayed Payments Program, the Public Procurement Policy, etc.
MSMEs can access priority sector loans from banks.
A reduction in the MSME electricity bill, with special attention given to international trade shows
Additionally, the state government give support to MSMEs

Conclusion

In developing nations like India, MSMEs are the economy’s foundation. MSMEs significantly contribute to the country’s socioeconomic growth, and this sector serves as an accessory unit to the major industries. Compared to other large enterprises, this sector plays a significant role in providing employment opportunities on a large scale at lower costs. This sector also helps the industrialization of rural and underdeveloped areas and lessens regional imbalances, ensuring a more equitable distribution of wealth and national income. Although it is not yet required, MSME registration online offers numerous advantages to MSMEs in terms of credit opportunities, loans, taxation, business establishment, etc., as was covered earlier in this article.