Udyam Registration portal, also known as MSME Registration or SSI Registration, is a certificate granted to micro, small, and medium-sized businesses in India under the MSME Act of 2006.In India, MSME registration was previously known as Udyam registration. The following are the major aims of Micro, Small, and Medium Enterprises in terms of Udyam registration:
- Providing large-scale Micro, Small, and Medium Enterprises with the tools they need to successfully address widespread unemployment and poverty.
- To bring together the advantages of numerous government initiatives for SSI units in one location.
- To safeguard the SSI from financial abuse by large corporations.
Eligibility for Udyam Registration:
In India, not all businesses are obliged to register with Udyam. The firms mentioned below are eligible for Udyam registration if their investment in plants and machines qualifies them as micro, small, or medium businesses.
- Plant and machinery investments of up to Rs. 25 lakh are possible for microbusinesses.
- Small firms can invest up to Rs. 5 crore in plant and machinery.
- Medium-sized enterprises can invest up to Rs. 10 crore in plant and machinery.
Becoming an Enterprise:
- Anyone who wants to create a micro, small, or medium business in India should register with Udyam.
- Once the registration is finished, a permanent identification number known as the Udyam Registration Number is issued to an entity known as Udyam.
- When the registration process is completed, an Udyam Registration Certificate is issued.
- All units with the same GSTIN listed against the same PAN should be treated as one enterprise, and the turnover and investment figures for all entities should be viewed together, with only the aggregate values used to determine whether the entity is classified as a micro, small, or medium enterprise.
Calculating the cost of plant and machinery:
- The preceding year’s Income Tax Return submitted under the Income Tax Act of 1961 must be used to calculate investment in plant, machinery, or equipment.
- If a new firm does not have an ITR filing, the investment will be based on the promoter’s self-declaration, which will end after the 31st March of the financial year in which the first ITR is filed.
- The phrase “plant and machinery or equipment” should have the same meaning as “plant and machinery” in the Income Tax Rules, 1962, established under the Income Tax Act, 1961, and relate to physical assets other than land, buildings, furniture, and fittings.
- If a company is newly formed and does not have an ITR, the invoice value of a plant, machinery, or equipment should be assessed, regardless of whether it was acquired or used, and the GST should be deducted on a self-disclosure basis.
- Certain items specified in explanation I to subsection 7 of the Act should be excluded from the plant and machinery investment calculation.
Calculation of turnover:
- When measuring a business’s turnover, whether it is micro, small, or big, exports of products or services, or both, should be eliminated.
- The GSTIN should be connected to information regarding an enterprise’s turnover and export turnover under the Income Tax Act or the CGST.
- The turnover relevant to the numbers of such an entity that does not have a PAN shall be examined on a self-declaration basis for the period up to and including December 31, 2021. It will be necessary to provide the PAN and GSTIN.
Composite criteria of investment and turnover for classification:
A combination of investment and turnover criteria should be used to classify a business as micro, small, or medium.
An enterprise will be moved to the next higher category if it exceeds the ceiling limits set for the current category in either investment or turnover; however, no enterprise should be moved to the lower category unless it falls below the ceiling limits set for the current category in both investment and turnover.
Documents Required for Udyam Registration:
What documents do I need to register for Udyam in India?
- In the event of a proprietorship, the applicant’s Aadhar card and PAN are necessary to acquire Udyam Registration.
- The applicant’s Aadhar number and a valid PAN number are also required in the case of a proprietorship.
- In the event of a partnership, the Aadhar and PAN of one of the partners must be utilised.
- In the case of a company, the Directors Aadhar and PAN may be used.
- In the case of an LLP, the Aadhar and PAN card of the chosen partner must be utilised.
If the applicant or an authorized signatory does not already have a valid Aadhar Card, they must first apply for one at an Aadhar enrolment center. The Udyam Registration process can begin once the Aadhar number is obtained.
Udyam Registration Has Many Benefits:
- Udyam Registration has made the process of establishing a firm as an MSMEs much easier, but it also offers some additional benefits.
- Bank loans provide lower interest rates and, in some cases, may not require collateral or a mortgage.
- The applicant is not qualified for help from the government.
- The applicant is given financial support to showcase their products at international trade fairs.
- Registration with Udyam can also save you money on starting fees and even patenting.
- Small and medium-sized enterprises who register with Udyam can also benefit from a number of tax incentives and exemptions.
- Tariff subsidies are offered, as well as capital and government subsidies.
- Obtaining permits, approvals, and registration becomes easier with Udyam Aadhar registration.
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Conclusion:
In this article, I’ve covered the entire procedure of udyam registration, as well as its advantages. I hope you find this information useful.