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MSME/Udyam registration is an initiative by the Government of India to give legal and operational identity to micro, small, and medium businesses in India. Udyam registration was previously known as MSME registration or Udyog Aadhar registration and is governed by the MSME (Micro, Small, and Medium Enterprise) Development Act, 2006. In 2020, the registration process was changed from Udyog Aadhar registration to Udyam registration in order to simplify the registration process and help businesses accelerate growth. The entire process is online and based on self-declaration. All registered businesses can take the benefits granted under the MSME scheme. This includes many financial benefits such as easy loan facilities, hassle-free registrations, additional edge in Government Tenders, protection against delayed payments, etc.
Businesses falling into the following three categories are eligible to apply for MSME/Udyam registration online:
Micro Enterprises: Those with investment in plant and machinery up to ₹1 crore and an annual turnover not exceeding ₹5 crores.
Small Enterprises: Entities with investment in plant and machinery up to ₹10 crores and an annual turnover not exceeding ₹50 crores.
Medium Enterprises: Businesses with investment in plant and machinery up to ₹50 crores and an annual turnover not exceeding ₹250 crores.
Registered MSMEs gain access to various government schemes such as the Credit Guarantee Scheme, subsidies, and protection against delayed payments.
: Simplified compliance procedures and easier access to licenses and approvals.
Eligibility for collateral-free loans and lower interest rates.
Preference in government tenders and increased market opportunities.
Documents Checklist
A Copy of the proprietor’s Aadhar card or of director(s) or partner(s) in other cases for Udyam Aadhar Registration.
A Copy of PAN card of the business entity; or of individual in case of proprietorship firm.
GST Number Certificate issued by the GST Department to a business if applicable.
The passbook or Cancelled cheque of the bank account is must.
Certificate of Incorporation or Registration Certificate mentioning the type of business.
If place is rented, rent agreement is mandatory, else consent letter is sufficient
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Udyam registration certificate is a certificate provided to all Udyam registered entities. It is provided as a downloadable pdf/soft copy by the Government on the registered email id of the applicant or entity. The certificate is available on Udyog Aadhar portal. And can be downloaded using the applicant’s Aadhar number.
No, you do not have to renew your Udyam registration. It’s a permanent registration, it stays valid for as long as the registered business exists.
With a notification issued dated 27.06.2017, the ministry has excluded activities of wholesale or retail trading; Fishing and aquaculture; Forestry and logging; and more. Business entities engaged solely in activities falling under such categories cannot make an application for registration. Pursuant to an update in 2021, retail and wholesale traders other than those dealing with motor vehicles and motorcycles are now eligible for Udyam registration.
There are zero government fees charged for Udyam Aadhar Registration online. However, you can go for assisted filing services for MSME registration and professional fees will be applicable.
Yes, the Aadhar card of the applicant is mandatory for Udyam/Udyog Aadhar registration. In case, the applicant is a proprietorship firm, the proprietor’s Aadhaar is required. If it’s a HUF Karta’s Aadhaar is needed. In the case of a partnership firm the Aadhaar of the managing partner has to be provided and in the case of an LLP or Company, the Aadhar of an authorized signatory must be provided.
No, GST Number is not mandatory for MSME Registration. However, it is mandatory to mention the GST number if obtained earlier.
This is a voluntary registration and not mandatory. Nevertheless, udyam registration is highly recommended due to the benefits available to registered businesses.
Get your business recognised as MSME