Introduction: Small and Medium Enterprises (SMEs) have been the backbone of the Indian economy, contributing significantly to the country’s growth and employment. To simplify and streamline the process of registration and classification, the Indian government recently launched a new platform, Udyam, to replace the existing MSME (Micro, Small and Medium Enterprises) registration process. In this blog, we will discuss the key differences between MSME and Udyam, the steps involved in the migration process and how it will benefit SMEs.
Key Differences between MSME and Udyam:
MSME and Udyam are similar in many ways but have a few key differences. The primary difference between the two is the classification criteria. MSME classified businesses based on their investment in plant and machinery, whereas Udyam classification is based on their annual turnover. Another difference is that MSME required a physical copy of the certificate, while Udyam is a completely online process.
- Simplified Process: The migration to Udyam has simplified the process of registering and classifying SMEs. The new system is entirely online, reducing the need for physical visits and paperwork.
- Reduced Processing Time: The Udyam registration process is much quicker and efficient compared to the previous MSME process, reducing the processing time significantly.
- Easy Access to Government Schemes: SMEs registered under Udyam will have easy access to various government schemes and benefits, such as easier access to loans, subsidies, and tax benefits.
- Improved Data Management: Udyam registration provides a centralized database for SMEs, which will improve data management and provide valuable insights into the SME sector in India.
- Increased Transparency: The Udyam registration process increases transparency and accountability, as all registered businesses are easily accessible and can be tracked. This helps to eliminate fraudulent activities and promotes a fair and transparent business environment.
- Better Understanding of SME sector: The centralized database of Udyam provides valuable insights into the SME sector in India, which will be useful for policy makers, government agencies and financial institutions to understand the needs and requirements of SMEs.
- Improved Credibility: Udyam registration provides a level of credibility and legitimacy to SMEs, making it easier for them to secure loans and partnerships with other businesses.
- Easy Loan Availability: SMEs registered under Udyam can easily avail various loans and financial assistance offered by the government and financial institutions. This will help them to grow and expand their business.
- Tax Benefits: SMEs registered under Udyam are eligible for various tax benefits and subsidies offered by the government. This will help them to reduce their tax burden and increase their profitability.
- Increased Competitiveness: The migration to Udyam will help SMEs to increase their competitiveness and stand out in the market. The improved credibility and transparency will help them to attract more customers and expand their business.
Steps involved in the Migration process:
- Preparation: The first step in the migration process is to gather all the necessary information and documents, such as PAN, GST registration, and bank details.
- Registration on Udyam Portal: The next step is to register on the Udyam portal (https://udyamregistration.gov.in/) by providing the required information and uploading the necessary documents.
- Obtaining Udyam Registration Number: Once the registration is complete, the SME will receive a Udyam Registration Number, which acts as a unique identification number for the business.
- Updating Details: The SME can update their details on the Udyam portal at any time, such as change of address, change of ownership, or change of business activities.
Here are the steps to migrate from MSME (Micro, Small and Medium Enterprises) registration to Udyam registration:
- Gather required information: Collect your PAN (Permanent Account Number), Aadhaar number, bank account details, and GSTIN (Goods and Services Tax Identification Number).
- Register on the Udyam portal: Go to the official Udyam website (https://udyamregistration.gov.in/). Fill out the basic information form, including your name, email, and mobile number.
- Verify your mobile number: An OTP (One Time Password) will be sent to your mobile number. Enter the OTP to verify your mobile number.
- Create a new Udyam account: Fill in the necessary details such as PAN, Aadhaar number, bank account details, and GSTIN.
- Fill in the enterprise details: Provide details about your enterprise such as its name, type, sector, and address.
- Classify your enterprise: Classify your enterprise as a Micro, Small, or Medium Enterprise as per the latest MSME definition.
- Upload required documents: Upload the necessary documents such as PAN card, Aadhaar card, and bank statement.
- Review and submit: Review all the details entered in the form and submit it.
- Receive the Udyam registration certificate: Upon successful submission, you will receive a Udyam registration certificate that can be downloaded and used for further official procedures.
You Can also watch this video for any correction or Updation in Udyam Certificate
Note: It’s advisable to keep a copy of all the documents and information submitted during the Udyam registration process for future reference.
In conclusion, the migration from MSME to Udyam is a positive step for the Indian SME sector and will help to promote the growth and development of small businesses in the country. The simplified process, reduced processing time, easy access to government schemes, and increased transparency will benefit SMEs in many ways and help them to achieve their full potential. It is encouraged for all SMEs to take advantage of the opportunities offered by the Udyam platform and make the most of the migration process.