What is Udyam Registration?

Udyam Registration is the new and simplified process introduced by the Government of India to officially register Micro, Small, and Medium Enterprises (MSMEs). It replaces the earlier system known as Udyog Aadhar Registration, which will now be referred to as Udyam Registration.

This registration process is easy, completely online, and designed for all business units that meet the new definition of MSMEs as per the latest government guidelines.

What is "Udyam" in Udyam Registration?

In Udyam Registration, the word "Udyam" means enterprise or business. So, when we say Udyam Registration, it simply means registering your business (or enterprise) with the Indian government under the official MSME (Micro, Small & Medium Enterprises) category.

Earlier, this process was called Udyog Aadhar Registration, but now it has been renamed as Udyam Registration.

Why is Udyam Registration Important?

Every startup and MSME in India can benefit from various government schemes by registering under the new MSME legislation. These schemes include easier access to credit, subsidies, protection against delayed payments, and priority in government tenders, among others.

Registering under Udyam ensures your business is recognized by the government and becomes eligible for all the advantages and incentives offered to MSMEs.

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 the 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 in tenders)
9. Electricity bills concession
10. Stamp duty and registration fee waiver
11. ISO certification fee reimbursement
12. Direct tax laws rule 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 26th June 2020, all existing MSME businesses must register or migrate to the new Udyam Registration system immediately

According to the new guidelines, any business unit previously registered under MSME or Udyog Aadhar will be considered a valid MSME only until 31st March 2021.

This means that all existing MSMEs are required to complete their Udyam Registration on or before 31st March 2021 to continue availing of the benefits under MSME schemes.

New Definition of MSME under Udyam

• Micro Enterprises:

Businesses will now be classified as Micro units if they have an investment of up to ₹2.5 crore and an annual turnover of up to ₹10 crore. Earlier, the investment limit was ₹1 crore with a turnover cap of ₹5 crore. Before that, the criteria were based on investment only - up to ₹10 lakh for service enterprises and ₹25 lakh for manufacturing.

• Small Enterprises:

To be categorized as a Small unit, the business must have an investment of up to ₹25 crore and an annual turnover of up to ₹100 crore. Previously, the investment threshold was ₹10 crore with a turnover limit of ₹50 crore. Earlier service enterprises were classified as Small if their investment was up to ₹2 crore.

• Medium Enterprises:

Enterprises with an investment of up to ₹125 crore and a turnover of up to ₹500 crore will now fall under the Medium category. Earlier, Medium enterprises were limited to ₹50 crore in investment and ₹250 crore in turnover. Before that, the limits were even lower - ₹10 crore for manufacturing and ₹5 crore for service enterprises.

Old Definition

Enterprise	Investment in plant and machinery or equipment	Turnover
Micro Enterprise	Not more than INR 1 Crore	Not more than INR 5 Crore
Small Enterprise	Not more than INR 10 Crore	Not more than INR 50 Crore
Medium Enterprise	Not more than INR 50 Crore	Not more than INR 250 Crore

Revised Definition

Enterprise	Investment in plant and machinery or equipment	Turnover
Micro Enterprise	Up to ₹2.5 crore	Up to ₹10 crore​
Small Enterprise	Up to ₹25 crore	Up to ₹100 crore
Medium Enterprise	Up to ₹125 crore	Up to ₹500 crore

Why Choose Msmeregistrar.org for Udyam Registration?

1. Easy Online Process

Our platform offers a simple and user-friendly interface to help you complete your Udyam Registration without any confusion or delays.

2. Expert Support

Get assistance from our experienced consultants who guide you through every step - from form submission to receiving your certificate.

3. Quick Turnaround Time

We ensure fast processing of your application so you can get your Udyam Certificate delivered to your email in the shortest time possible.

4. Secure Payment Gateway

Make your payment safely through our secure and encrypted online payment system.

5. End-to-End Service

From new registrations to updates, corrections, and reprints, we provide complete support for all your Udyam-related needs

6. Personalized Assistance

After the form submission, our executive will contact you to verify your details and help with OTP submission for a smooth and successful registration.

7. Trusted by Thousands

Join the growing number of businesses that trust Msmeregistrar.org for their MSME registration and compliance needs.

For any assistance, feel free to contact our executive through the enquiry form.

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