Udyam Registration and MSME Samadhan

UDYAM REGISTRATION AND MSME SAMADHAN

MSM stands for micro, small and medium enterprises and any enterprise that falls under any of these three categories. MSME enterprises are the backbone of any economy and are an engine of economic growth, promoting equitable development for all. Therefore, to support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act.

Micro, Small and Medium sized enterprises in both the manufacturing and service sector can obtain MSME Registration under the MSMED Act.

Udyam Registration or MSME Registration is the new process for registering MSME (micro, small and medium enterprises) launched by the Ministry of Micro, Small & Medium Enterprises on July 1, 2020. The Ministry had also revised the definition of MSMEs from the same date. An enterprise for this process is known as Udyam, and its Registration Process is known as Udyam Registration. A permanent registration number along with a recognition certificate will be issued after Registration.

Udyam registration is essential for availing the various benefits of schemes or programs of the Ministry of MSME, such as the Credit Guarantee Scheme, public procurement policy, additional edge in Government Tenders and protection against delayed payments, etc.

What is Udyam Registration?

Udyam or Udhyam is Central Government based Registration for MSME (Micro Small and Medium Enterprises) Sector. Udyam was priory known as MSME Registration or Udhyog Aadhar Registration or SSI Certificate (Small Scale Industries Certificate) which was upgraded as Udyam Registration by Government of India (MSME Ministry) where all existing Enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after the 1st day of July, 2020. Also after 31st March, 2021 Udyam registration will be only valid Certificate for MSME replaced with all previous versions. Udyam Registration is required to acquire any other Government or Compliance based Registrations, Licenses and Certifications.

What is MSME SAMADHAN?

The MSME Samadhaan portal enables the MSMEs to directly register their cases about delayed payments against the buyer of goods/services before the Micro and Small Enterprise Facilitation Council (MSEFC). These complaints will be visible to the Central Ministries/Departments/CPSEs/State Governments, etc., for pro-active actions.

The primary objective of the MSME Samadhaan portal is to monitor the delayed payments of the MSME sector, which the administration reviews.

What is MSME Databank?

After Udyam registration is completed and issued, Entrepreneur can register with MSME Databank. The objective of the MSME Databank is to create a detailed database of all MSME units in the country and help them participate in the procurement process under the Public Procurement Policy of Government of India. It allows Ministry of MSME to capture the Census data online along with the information and requirements related to Joint Venture, technology transfer, import export of machinery and also enables to streamline and monitor various schemes and policies so that the Ministry can pass on the benefits directly to the MSMEs.

Benefits of Udyam Registration:

  • Special Preference in Procuring Government Tender
  • Interest Rate Subsidy on Bank Loans
  • Collateral Free Loans from Banks
  • Special 50% discount on Government fees for Trademark and Patent filing
  • Protection against delayed payments, against material/services supplied
  • Special beneficial reservation policies in the manufacturing/ production sector
  • Ease of obtaining registrations, licenses, and approvals.
  • Udyam Registered entity gets eligible for CLCSS (credit linked capital subsidy scheme)
  • International trade fair special consideration
  • Government security deposit (EMD) waiver (Useful while participating tenders)
  • Electricity bills concession
  • ISO & Quality certification fees reimbursement
  • MSME Samadhan

Documents for Udyam Registration

  1. Aadhar Card
  2. Pancard
  3. Register E-mail ID and Mobile No.
  4. GST Certificate
  5. Bank Details
  6. Employee details and Product details

UDYAM Registration FAQ's

Yes, Aadhar is mandatory for obtaining the Udyam Registration.

The user will have to provide their 12 digit Aadhar number, PAN Card, and the bank account details of the business for the registration process.

The registration is valid till the existence of enterprises and there is no need to renew the registration.

No, one cannot take more than one Udyam registration on the same PAN.

The NIC code is a business code that is provided by the government to track the business proceedings for the organization under the micro, small and medium enterprises.

One can add a maximum of 10 NIC codes for Udyam registration.

The Udyam Registration certificate provides the companies registered under the Udyam special access to the schemes by the government. The Udyam Registration directly links enterprises with the government database.

The processing is dependent on the submission of the documents by the client.

The documents and details should be up to date to avoid any chances of rejection.

Udyam registration is the latest Registration procedure for the Micro, Small, and Medium Enterprises (MSME), launched on July 1, 2020, by the government to ease the registration process.

MSME Samadhaan is a Portal created by Office of DC(MSME), Ministry of Micro, Small and Medium Enterprises (MSME) where Micro and Small Enterprises (MSEs) can file their applications online regarding delayed payments.

Yes, UAM is mandatory to file applications online on MSME Samadhaan Portal.

Yes, work order is compulsory. In case purchase order is oral an affidavit to that effect is to be submitted.