If you’re a business owner in Mumbai, you might be familiar with Udyam registration. It’s a government initiative that helps small businesses obtain various benefits and incentives.
Starting a business in Mumbai can be difficult because of the many rules and regulations there. Registration under the Udyam Registration Scheme is an important part of starting a business. We will discuss what Udyam Registration is, its benefits, and how to register your business under it in Mumbai.
1. Access to Government Schemes
Registering your business with Udyam makes you eligible for several government programs and incentives. These schemes include credit guarantee schemes, marketing assistance, and technology upgrades.
2. Subsidies and Tax Benefits
Registered businesses can avail themselves of various subsidies and tax benefits. These benefits include lower interest rates on loans, exemption from certain taxes, and subsidies on various expenses.
3. Easier Bank Loans
Udyam registration makes it easier for small businesses to obtain bank loans. Banks prefer to lend to registered businesses as they are considered more trustworthy and reliable.
4. Improved Credibility
Udyam registration improves the credibility of your business. It demonstrates that your company has attained certain standards and is government-recognized.
(i) Type of Business
Udyam registration is for micro, small, and medium enterprises. These businesses must fall under the following sectors: manufacturing, services, or trading.
(ii) Classification of Enterprises
The MSME Act of 2006 says that businesses are put into different groups based on how much they have invested in plants and machinery. The following table outlines the classification of enterprises:
Type of Enterprise
Investment in Plant and Machinery or Equipment
Up to Rs. 1 crore
Up to Rs. 10 crore
Up to Rs. 50 crore
(iii) Criteria for Micro, Small, and Medium Enterprises
For a business to be eligible for Udyam Registration, it must meet the following criteria:
Step 1: Visit the Udyam Registration Portal
The first step is to visit the official Udyam registration portal (udyamregistration.gov.in). Click the ‘New Entrepreneur Registration’ button to start the registration process.
Step 2: Enter your Aadhaar number
Enter your 12-digit Aadhaar number here. The registration process is linked to your Aadhaar card details.
Step 3: Enter the OTP
Enter the OTP where it says to on the registration portal, and then click “Submit.”
Step 4: Validate the details
Once you have entered all the required details, validate them by clicking the ‘Validate and Generate OTP’ button. An OTP (one-time password) will be sent to the mobile number linked to your Aadhaar card.
Step 3: Enter your business details
Enter your business details, including name, type of organization, PAN number, and address. You will also need to provide information about the number of employees and investment in plant and machinery.
Step 6: Complete the Udyam registration form
After entering the OTP, you will be redirected to the Udyam registration form. Fill in all the required details, including your personal, business, and bank account details. Upon completion, click the “Submit” button.
Step 7: Verify Udyog Aadhaar
Once the submission is done, applicant need to visit to verify udyog aadhaar page and fill the required details and click verify.
Step 8: Download the Udyam registration certificate
You can download the Udyam registration certificate after successful payment. The certificate will contain your unique Udyam registration number (URN) and other business details