Udyam registration is a voluntary certification scheme that aims to uplift the financially-aggrieved MSME sector. Udyam registration holders can have access to various government-based schemes and benefits. MSME Act, 2006 pens the eligibility criteria for such registration. For the enrolment under Udyam registration, one has to fill out the Udayam Registration form and submit it on the Udyam Portal after completing the OTP verification. The write-up aims to discuss the Udyam registration form/application in detail.
Who can fill out the Udyam registration form?
It’s worth noting that not all MSMEs fall under the MSME Act 2006. There is a specific criterion that a business has to meet to enroll under the said Act.
MSME operating in the manufacturing sector can be identified if;
Micro enterprises – The investment doesn’t surpass twenty five lakh rupees
Small enterprises – The investment is abovetwenty-five lakh rupees but doesn’t exceed five lacs rupees.
Medium enterprises – The investment is above five crore rupees and does not surpass ten lakh rupees.
MSMEs operating in the service sector can be identified if:
Micro enterprises – The investment doesn’t surpass ten lakh rupees.
Small enterprises – The investment is above ten lakh rupees but does not surpass two crores rupees.
Medium enterprises – The investment is above two crores rupees but doesn’t surpass five crore rupees.
How to get access to Udyam Registration form?
- Head over to the Udyam Aadhaar portal
- On the home page, click the option called “For new entrepreneurs who are not registered as MSME.”
- On the next page, the provide your aaddhar no. and name
- Complete OTP verification
- Enter the type of organization and PAN detail
- Render confirmation relating to GSTIN availability, if any, and ITR for preceding FY
As you soon complete the above steps, the portal shall open the e-application, i.e. Udayam Registration form.
Details to be filed by applicant in the Udyam Registration form
The section discusses the critical inclusions of the Udayam Registration form that would appear after completing the above procedure.
- Name of the Entrepreneurs as mentioned on Aadhaar/PAN
- Contact Number and email address
- A table highlighting the categorization of MSMEs’ ownership depending on the percentage share/member/Amount’s contribution
- Applicant’s details such as Social category, gender, etc.
- Name of the enterprise/plant/unit
- Address of the enterprise/plant/unit
- The official address of the enterprise
- Details relating to previous EM-II/UAM registration, if any
- Status of enterprise such as Incorporation Date, confirmation regarding the commencement of business/production, Commencement date of business/production
- Bank details such as IFSC code and bank account number
- The prime activity of the unit
- National Industrial Classification Code
- Detail of employees working in the establishment
- Investment in plant & machinery*
- Turnover of the plant/business*
Investment in plant and machinery*
According to the Udhyam registration form, the net investment in plant and machinery shall be estimated on the following expression.
A: Written Down Value as on the March of the FY 2019-20
B: Exclusion of costs relating to pollution control, R&D, and Industrial safety equipment during 2019-20
Net investment in plant and equipment = A-B
Turnover of the plant/business*
The estimation of net turnover shall be computed based on the following expression.
A: Total Turnover during FY 2019-20
B: Export Turnover during FY 2019-20
Net turnover = A-B
Udayam Registration form for new applicants is a simplified e-application that seeks minimal details and nil attachments. In the last section of this e-form, the portal shall prompt the applicant to submit the duly-filed form and validate their submission via OTP verification.
Facilities Available to MSMEs in Udyam Registration Form
After filling in the above details, the portal shall prompt the applicant to enrol with schemes like the Government e-market (GeM) and TReDS. Let us explore some facts about both these schemes;
GeM is a dynamic and intuitive web-based portal for making procurement by Government officers. Public procurement constitutes a critical part of government activity, and reform in public procurement is one of the utmost priorities of the existing government.
GeM is a very proactive step of the GOI with the aim to revamp the way in which procurement of goods & services is pursued by the government-based departments and ministries, public sector undertakings and other key agencies of the Central Government.
GeM Benefits for Buyers
- Rich listing of items for individual categories of goods or services
- Search, Compare, Choose and Purchase Facility
- Seamless procurement of Good owing to 24×7 availability
- Simplified and transparent buying
- Availability of the vendor rating system
- Intuitive dashboard for buying and tracking supplies and payments
- Simplified Return policy
GeM Benefits for For Sellers
- Seamless access to concerned Government departments.
- Marketing expenses are next to negligible.
- Availability of bids / reverse auctions on services/products
- New product recommendation facility
- Competitive pricing
- Intuitive dashboard for selling and tracking supplies as well as payments
- Simplified purchase procedures
TReDS stands for Trade Receivables Discounting System. It is a web-based platform that enables MSME suppliers to discount their invoices and bills. The Reserve Bank of India introduced TReDS in the year 2018. This online portal helps MSMEs extinguish financial liabilities through invoice discounting scheme. This allows MSMEs to maintain consistent capital backup despite compromised cash flow.
The TReDS enables MSME sellers to discount active invoices and bills against prominent companies, which allows them to administer their working capital demands.
Salient Features of TReDS
- Unified platform for Buyers, Seller, & Financiers
- Almost nil Paperwork
- Seamless access to funding
- Prompt and secure transact
- Lucrative Discount Rates
- Seamless and secured Data Flow
- Standardized Practices
Udyam Registration form is a simplified e-application that ensures a seamless enrolment of MSMEs under the MSME Act, 2006. It seeks fewer details and zero attachments from the applicants. Once registered, the Udayam Registration holders can access various benefits and schemes released by different government ministries.
Read our Article:Udyam Aadhaar Certification Key Benefits: Explained