What is the meaning of udyam registration?
Udyam registration in india also known as micro, small and medium enterprise registration as well as small scale industry registration is a certificate provided to micro, small and medium sized enterprise in india under the micro, small and medium enterprise act of 2006. Msme registration portal was the previous name for udyam registration in india. In terms of udyam registration the following are the main goal of micro, small and medium enterprise.
To enable large scale micro, small and medium enterprise to effectively address widespread unemployment and poverty issue.
To provide small scale industry unit with the benefit of several government initiative in one place.
To protect the small scale industry against financial exploitation at the hands of huge enterprise.
Udyam registration eligibility.
In india who is qualified for udyam registration?
In india not all enterprise are required to seek udyam registration. The entity listed below are eligible for udyam registration if they are classed as micro, small and medium company based on their investment in plant and machinery.
Micro enterprise. Plant and machinery investment of up to rupees 25 lakh is possible.
Small enterprise. Plant and machinery investment of up to rupees 5 crore.
Medium sized enterprise. Plant and machinery investment of up to rupees 10 crore.
Becoming an enterprise.
Anyone planning to start a micro, small and medium business in india should apply for an udyam registration.
The permanent identifying number known as the udyam registration number is assigned to an enterprise known as udyam once the registration is completed.
After the registration process is completed, an udyam registration certificate is issued.
All unit with the same good and service tax identification number listed against the same permanent account number should be treated as one enterprise and the turnover and investment figure for all entity should be viewed together with only the aggregate value being used to determine whether the entity is classified as a micro, small and medium enterprise.
Calculation of plant and machinery investment.
The calculation of investment in plant and machinery must be linked to the previous year income tax return filed under the income tax act of 1961.
If a new business does not have an income tax return filing the investment will be based on the promoter self- eclaration and this relaxation will terminate after the 31st of march of the financial year in which the first income tax return is filed.
The term plant and machinery should have the same meaning as plant and machinery in the income tax rule 1962 which are enacted under the income tax act 1961 and shall refer to tangible asset other than land and building as well as furniture and fitting.
If an organization is freshly founded without an income tax return the invoice value of a plant and machinery as well as equipment should be evaluated and whether it is purchased first hand and second hand and the good service tax should be subtracted on a self disclosure basis.
The cost of certain item listed in explanation one to subsection seven of the act should be omitted from the computation of the plant and machinery investment.
Turnover calculation.
When determining the turnover of a business whether it is micro, small and big export of good and service as well as both should be omitted.
The income tax act and the central goods service tax and the goods service tax identification number should be linked to information about an enterprise turnover and export turnover.
For the period up to and including 31st of december, 2021 the turnover relevant to the figure of such an enterprise that does not have a permanent account number will be considered on a self declaration basis. The permanent account number and goods service tax identification number will be required.
Composite criteria of investment and turnover for classification.
The classification of an enterprise as micro, small and medium should be based on a composite of investment and turnover criteria.
If an enterprise exceed the ceiling limit set for the current category in either investment and turnover it will be moved to the next higher category. However no enterprise should be moved to the lower category unless it falls below the ceiling limit set for the current category in both investment and turnover.
Required document for udyam registration.
What document do i need to register for udyam in india?
The applicant aadhar card and permanent account number are required to obtain udyam registration in the case of a proprietorship.
In the event of a proprietorship the applicant aadhar number and a valid permanent account number are also necessary.
In the case of a partnership and the partner as well as the aadhar and permanent account number must be used.
The director aadhar and permanent account number might be employed in the case of a firm.
In the event of an limited liability partnership the chosen partner aadhar and permanent account number card must be used.
If the applicant and 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.
Details for acquiring udyam registration must be given.
What information is needed for udyam registration?
Aadhar number.
The entrepreneur name as it appears on the aadhar card.
Phone number.
Personal identification number.
Email.
Gender.
Physically challenged.
Social classification.
The business name.
Entity classification.
The firm complete address.
When did your company start.
Company and personal bank account information.
International financial service code.
Account number.
Name and location of the bank.
Manufacturing and service is a major activity.
Select the type of manufacturing if it is manufacturing.
In the case of service the type should be service.
National identification code.
The number of people employed by the company
Detail of the income tax return.
Do you have a goods service tax identification number?
Industry center for the district.
Indicate the location.
The advantage of udyam registration.
What are the advantage of registering for udyam in india?
Udyam registration has simplified the process of registering a business as an micro, small and medium enterprise but it also has some other advantage.
Bank loan can be obtained at a cheaper rate of interest and in some situation without the need for collateral and a mortgage.
The applicant is ineligible for government assistance.
The applicant receive financial assistance in order to exhibit their product at international trade show.
Udyam registration can also help you save money on startup cost and even patenting.
Small and medium sized enterprise with udyam registration can also take advantage of several tax break and exemption.
Tariff subsidy as well as capital and government subsidy are available.
With udyam aadhar registration obtaining license permission and registration become easier.
