Udyog/ Msme Registration

Udyog Aadhaar (now replaced by Udyam Registration) is an initiative under the Micro, Small, and Medium Enterprises (MSME) Ministry to simplify the registration process for small businesses in India. It allows MSMEs to easily register and benefit from government schemes and support. Here’s an overview of MSME registration through Udyam:

MSME Classification:

Based on investment in plant & machinery or equipment and annual turnover, businesses are categorized into three classes:

1. Micro Enterprises:
   • Investment: Up to ₹1 crore.
   • Turnover: Up to ₹5 crore.
2. Small Enterprises:
   • Investment: Up to ₹10 crore.
   • Turnover: Up to ₹50 crore.
3. Medium Enterprises:
   • Investment: Up to ₹50 crore.
   • Turnover: Up to ₹250 crore.

Benefits of MSME/Udyam Registration:

1. Subsidized Loans: MSMEs can access collateral-free loans and lower interest rates.
2. Government Tenders: Special preferences and exemptions are given to MSMEs in government tenders.
3. Credit Guarantee Scheme: MSMEs get credit support under the Credit Guarantee Fund Scheme for loans.
4. Tax Benefits: Some MSMEs can avail tax rebates and exemptions.
5. Market Access: Registered MSMEs have better access to both domestic and international markets, with assistance for export promotion.
6. Protection against Delayed Payments: MSMEs can recover delayed payments with the help of the MSME Samadhaan portal.

Transition from Udyog Aadhaar to Udyam:

• Udyog Aadhaar holders were required to re-register under Udyam before 31st March 2021.
• GST and PAN have become mandatory for Udyam Registration since July 2020.

Udyam Registration makes it easier for MSMEs to establish their credibility and access various benefits provided by the government.