What is Udyam Registration?

Udyog Aadhar Registration will now be called Udyam Registration. This Registration is an easy process for all units which are eligible to get covered under the new definition of MSMEs provided by the GOVERNMENT OF INDIA.

Every Startup and MSME company get the benefit of the various schemes launched by the Government by getting themselves registered under New MSME Legislations. This udyam Registration will give you more benefits to enjoy the Government Schemes.

Meaning of Udyam

The notification issued by the Government says that from July 01, 2020, an MSME will be known as udyam, and the enrolment or the registration process will be known udyam Registration.

Benefits of Udyam Registration

To avail of the following benefits MSME / Subsidies/Low-Interest Loans / Collateral Free Loans/etc, you have to register under the new udyam Scheme on udyam registration portal

1. Interest rate Subsidy on Bank loans
2. Collateral free loans from banks
3. Protection against delayed payments, against material/services supplied
4. Special beneficial reservation policies in the manufacturing/ production sector
5. Ease of obtaining registrations, licenses, and approvals.
6. Msme Registered entity gets eligible for CLCSS (credit linked capital subsidy scheme)
7. International trade fair special consideration
8. Government security deposit (EMD) waiver (Useful while participating tenders)
9. Electricity bills concession
10. Stamp duty and registration fees waiver
11. ISO certification fees reimbursement
12. Direct tax laws rules exemption
13. NSIC performance and credit rating fees subsidy
14. Patent registration subsidy
15. Barcode registration subsidy
16. Industrial Promotion Subsidy (IPS) Subsidy Eligibility

Udyam Registration Due Date

As per the notification dated 26.06.2020, all existing MSME companies must register/convert to new udyam immediately. As per the new law, every business unit registered under MSME / Udyog Aadhaar shall be treated as a valid MSME up to 31st March 2021. It means that all existing MSME Companies must register/convert on or before 31st Mar 2021 to enjoy the MSME Benefits.

New Definition of MSME under Udyam

Micro units : MSMEs will now be called Micro units if they have investments up to Rs 1 crore and turnover of less than Rs 5 crore. The definition earlier was on investment criteria of up to Rs 10 lakh for Service MSMEs earlier and Rs 25 lakh for manufacturing.

Small units : For an MSME to be defined as a Small unit, its investment limit has been raised from Rs 5 crore to Rs 10 crore with a turnover of less than 50 crore. This applies to all MSMEs including the Service enterprises which earlier came under-investment of up to Rs 2 crore.

Medium units : Enterprises with investments up to Rs 50 crore with a turnover of less than Rs 250 crore will now be called Medium units. Earlier, the investment limit for Medium units was up to Rs 10 crore and Service enterprises up to Rs 5 crore.

Enterprise	Turnover	Investment
Micro	Not more than 5 Cr.	Not more than 1 Cr.
Small	Not more than 50 Cr.	Not more than 10 Cr.
Medium	Not more than 250 Cr.	Not more than 50 Cr.