Table of Contents
Introduction
As an government registered initiative, Udyam registration is the new process of registration for Micro, Small and Medium Enterprises (MSME) in India. The online registration system was launched on July 1, 2020, as a replacement of the bygone Udyog Aadhaar Memorandum (UAM) system. It acts as the single window for MSMEs to get all benefits from the government. Here in this guide you will read about all the basics, benefits, limitations of Udyam Registration with Documents and how Associate Buddy can help you in saving time, money and guiding you.
What is Udyam Registration?
Udyam Registration is a statutory certification that all MSMEs receive officially from the government. This registration ensures that the businesses are recognized as MSMEs in order to avail various benefits such as subsidies, tax exemptions and easy access to loans. The whole process is online and hence it becomes more accessible for business operations.
Documents Required for Registering a Udyam
To register your business under Udyam, you need the following documents:
- Aadhaar Card of the business owner
- PAN Card of the business
- Business Address Proof (rent agreement or property papers)
- Bank Account Details (cancelled cheque or bank statement)
- Details of the Business Activity
Essential Licenses and Registrations for Udyam
Apart from Udyam Registration, businesses may need additional licenses and registrations depending on their industry and location. These may include:
- GST Registration
- Trade License
- Factory License
- FSSAI License (for food-related businesses)
- Pollution Control License (for certain manufacturing units)
Udyam Registration Benefits
- Udyam Registration provides companies with a number of advantages:
- Easy Loan Access: MSMEs are eligible for loans without collateral.
- Tax Benefits and Subsidies: There are several tax breaks and subsidies available.
- Credit Guarantee Programme: Availability of credit assurances.
- Market Promotion: Qualification for government-funded programmes aimed at developing the market.
- Compliance Ease: Streamlined compliance requirements.
Drawbacks to Udyam Registration
- There are a few disadvantages despite its benefits:
- The initial registration process might be a hassle for people who are not comfortable with digital platforms, even when it is done online.
- Annual Compliance: Companies must submit and amend their annual reports on time.
- Restricted Application for Big firms: The advantages are mainly designed for small and medium-sized firms, excluding big businesses from eligibility.
Registering a Udyam Online through Associate Buddy
Registering your business for Udyam through Associate Buddy can significantly simplify the process. Here’s how Associate Buddy can help:
- Expert Guidance: Our team provides step-by-step assistance throughout the registration process.
- Document Management: We help gather and manage all necessary documents.
- Timely Updates: Stay informed about compliance and regulatory changes.
- End-to-End Service: From registration to annual compliance, we handle it all.
Compliances for Udyam
After obtaining the Udyam Registration, businesses must adhere to the following compliances:
- Annual Return Filing: Submitting annual returns to the government.
- Financial Statements: Regular updates of financial statements.
- GST Returns: Timely filing of GST returns if applicable.
- Adhering to Labor Laws: Compliance with labour laws and employee welfare regulations.
Conclusion
- Introduction Udyam Registration Important step for MSMEs to regularize their businesses and enjoy advantaging from the government. Now, even though the process can be intimidating, Associate Buddy comes in to smoothen your registration and compliance bits and make sure your business is compliant and enjoy all the benefits of being an MSME registered entity.
Visit Associate Buddy today to get started with your Udyam Registration.