What is Udyam registration?
Eligibility for Udyam registration
Becoming an Enterprise
- Anyone intending to start a small, medium or medium enterprise must register for Udyam in India.
- Once the registration is complete a business called Udyam is given a permanent ID number known as the Udyam Registration Number.
- Udyam Registration Certificate is issued at the conclusion of the registration process.
- All units with assets and Service Tax Identification Number (GSTIN) listed on the Permanent Permanent Account Number (PAN) should be regarded as one business and profit and investment accounts for all organizations should be considered together and only. Combined values will be considered to determine the category as a small, medium or medium-sized business.
Industrial and mechanical investment accounting
- The calculation of investment in industry or machinery or equipment will be linked to the Income Tax Return of previous years included under the Income Tax Act, 1961.
- In the case of new businesses where the ITR is not available, the investment will be based on the announcement of the business promoter and this break will end after 31 March of the financial year in which the first ITR is installed.
- The term “business and equipment or equipment” of a business shall have the same meaning as assigned to industry and machinery in the Income Tax Act, 1962 under the Income Tax Act, 1961 and will include tangible assets excluding land and buildings, furniture and fixtures.
- The invoice value of the industry and equipment or equipment whether purchased by hand or second hand should be considered and GST should be disclosed in the event of a new business being built outside of ITR.
- The cost of certain items specified in Schedule I to section 7 of the Act must be deducted from the calculation of the investment in industrial and machinery.
- Export of goods or services or both must be excluded when calculating business profit can be small, medium, or medium to separate.
- Information relating to the profit and profits of the export business must be linked to the Income Tax Act or CGST and GSTIN.
- The revenue associated with the figures of the non-PAN business will be considered for declaration for a period of 31 March 2021 and thereafter. PAN and GSTIN will be mandatory.
Combined terms of investment and dividend profit
Combined investment and profit criteria should be applied to classifying a business as small, medium or medium.
If an entity exceeds the limitations set out in the current category in any of the two investment methods or profits it will no longer exist in that category and will be placed in the next higher category but no business should be placed in the higher category. The lower class except where it exceeds the limits set out in the current section for both investment and flexibility conditions.
All units with a valid GSTIN listed on the same PAN should be considered as a group as a single entity and the profits and investment figures of these entities should be reflected together and only aggregated amounts will be considered for classification as. small, medium or medium-sized business.
Documents required for registration of Udyam
Details will be provided for Udyam registration
- Aadhar Number (Obligation)
- Business name as mentioned on Aadhar card (Must be linked to mobile number)
- Mobile number
- PAN Number (Pvt / LLP / Partner / Company PAN Number)
- Physical disability
- Community Category
- Name of business
- Nature of business;
- Factory Full Address
- Business start date
- Company or Personal banking details (Current / Savings)
- IFSC code
- Account number
- Bank & Branch Name (Only the owner can use the savings account)
- Main function – Production / service:
- If it produces select a production type
- In the case of service the type of service
- NIC code
- Number of employees employed in the Company
- ITR details
- Do you have GST IN?
- Regional Industrial Center
- Specify location (Urban or Rural)
The process to apply for registration in Udyam
To obtain Udyam registration must be followed by the following steps:
Step 1: We at AK Taxes help you get Udyam registration in India completely paperless.
Step 2: The business consultant comes to you first and understands your requirement.
Step 3: The consultant will explain the whole process and inform you of the documentation required to obtain Udyam registration in India.
Step 4: Once the documents have been collected and payment has been initiated. It is assigned to the relationship manager who runs the registration process.
Step 5: Our Relationship Managers make sure that the process is smooth with regular follow-up and proper consultation.
Benefits of Udyam Registration
- Udyam registration has simplified the business registration process under MSMEs but there are some additional benefits to it.
- Bank loans can be obtained at a lower interest rate in some cases loans can be obtained without collateral or mortgage.
- The applicant is eligible for a government grant.
- The applicant receives financial support to participate in international exposure to promote its products.
- Udyam registration also helps to reduce the cost of starting a business and even patents.
- There are also various tax rebates and exemptions for small and medium businesses registered in Udyam.
- There is a cash grant that can be obtained through cash and government grants.
- Licenses, accreditation, and registration become more liberal with the registration of Udyam Aadhar.
Frequently Asked Questions
Yes, Aadhar is responsible for the registration of Udyam.
The user will be required to provide their 12-character Aadhar number, PAN Card, and business bank account details through the registration process.
Registration is valid as long as there are businesses and there is no need to renew the registration.
No, one cannot take more than one Udyam subscription into the same PAN.
The NIC code is a business code issued by a government to track the progress of an organization’s business under small, medium and micro enterprises.