In India, micro, small, and medium enterprises (MSMEs) face many challenges in continuing their operations and business expansions. These MSMEs have a tough time getting credit or loans from banks and financial institutions. As a result, many MSMEs are forced to discontinue their operations despite employing nearly 100 million people and contributing significantly to the country's GDP.

The Government of India proposed the 2020 to help MSMEs overcome this problem. According to this scheme, all MSMEs should register as MSMEs as soon as they are established to qualify for some attractive benefits offered by the Government.

Though registering for UDYAM is not mandatory, it gives MSMEs multiple benefits for running their operations in India that help them mitigate not only financial but also other operational and logistical difficulties.

UDYAM Registration – What is it all about?

Earlier, MSMEs in India were registered under the Udyog Aadhaar Memorandum scheme, which the UDYAM scheme has replaced. Under the UDYAM scheme, all MSMEs will get an electronic certificate, which will make them eligible for many government offers and benefits.

The UDYAM registration process is simple and doesn’t involve any complex paperwork or formalities. Every registered MSME gets a unique number, known as the UDYAM registration number. This number remains the permanent identity of the MSME throughout its business life.

Who is Eligible for UDYAM Registration?

All trading, manufacturing, and service MSMEs can apply for UDYAM registration. The Government of India has defined the eligibility criteria as follows:

Micro Enterprises –

Enterprises whose investment in their assets is a maximum of Rs 1 crore and annual turnover is less than Rs 5 crores

Small Enterprises –

Enterprises whose investment in their assets is a maximum of Rs 10 crores and annual turnover is less than Rs 50 crores

Medium Enterprises –

Enterprises whose investment in their assets is a maximum of Rs 50 crores and annual turnover is less than Rs 250 crores

Any type of entity belonging to any of the above categories can apply for UDYAM registration. These entities include partnership firms, sole proprietorships, Hindu Undivided Families, Private Limited Companies, Limited Liability Partnerships, Limited Liability Partnerships, Cooperative Societies, and more.

What is the Process of UDYAM Registration?

Here are the steps to get an online UDYAM Registration Certificate:

Click on the official portal for UDYAM Registration - link

https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm