What is a Udyam Certificate? Complete information in simple language
India is a country where small and medium enterprises (MSMEs) are considered the backbone of the economy. To promote these industries and give them an official identity, the Government of India has started Udyam Registration. If you are a businessman or starting a new startup, then the Udyam Certificate is the most important document for you.
In this article, we will know what is Udyam Certificate is, what its benefits are, and why it is important for every business.
What is a Udyam Certificate?
Udyam Certificate is an official digital certificate issued by the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. This certificate evidences the recognition of your business as a Micro, Small or Medium Enterprise (MSME), which is received immediately by email after completing the registration on the online Udyam portal.
Main Objective of Udyam Certificate
The government has several main objectives before launching this certificate:
- Official Identity: Giving small industries a government identity so that they are not considered illegal.
- Database Preparation: It is important for the government to have the correct data on how many small businesses are running in the country so that the correct policies can be made for them.
- Ease of Doing Business: By eliminating paperwork and making the registration process so simple that even an average person can do it sitting at home.
Requirements for Udyam Registration Certificate
Obtaining a Udyam certificate is now easier than ever. You primarily need only two things:
- Aadhaar Card: The business owner’s Aadhaar card is mandatory. The mobile number must be linked to the Aadhaar card, as an OTP will be sent for verification.
- PAN Card: The PAN card is now linked to the Udyam portal for business turnover and tax information.
Who can get Udyam Certificate?
Udyam Certificate can be obtained by any person or organisation that is doing any business in India and comes under the category of MSME as defined by the government. It includes the following:
- Sole Proprietorship: When one person owns the business.
- Partnership Firms: A business run by more than one person working together.
- Private Limited Companies: Registered companies which are in the manufacturing or service sector.
- Limited Liability Partnerships (LLPs): Modern partnership firms.
- Self-Help Groups (SHGs) and Cooperative Societies: Those businesses are run collectively.
What information is contained in the Udyam Registration Certificate?
When you get this certificate, it contains the complete “Bio-data” of your business:
- Udyam Registration Number (URN): This is a unique ID which is given to every business.
- Enterprise Name: Name of your shop or company.
- Owner’s Details: Owner’s name and category.
- Business Type: What do you do (like textile, IT services, food processing, etc.).
- Business Address: Office and factory location.
- Date of Registration: The day the certificate was issued.
- QR Code: Through this, anyone can verify your certificate instantly.
Online Process of Udyam Registration Certificate
You do not need to go through any paperwork to get a Udyam Certificate.
- Portal: Go to official website.
- Self-Declaration: No document has to be uploaded in this. The information you have given is where I truly am.
- Aadhaar Link: It is mandatory to have an Aadhaar Card. If you have a company, then GSTIN and PAN are also required.
- Verification: After the application is submitted, the government system automatically verifies the data, and within some time, the digital certificate is issued.
You can also download udyam registration certificate throug our website without and difficulties.
Validity of Udyam Certificate
The most important feature of the Udyam Certificate is that it never expires.
- Once registered, it remains valid for a lifetime.
- You don’t have to worry about renewing it every year.
- If your turnover increases or you change your business address, you can update it online.
Benefits of Udyam Certificate
Not only identity, but this certificate also has many economic benefits:
- Ease of Bank Loan: Banks give priority to MSME-registered businesses in giving loans without any collateral.
- Low Interest Rates: By having this certificate, the interest rate on a bank loan can be reduced by 1% to 1.5%.
- Electricity Bill: In some states MSME units get a subsidy on the electricity bill.
- Benefit in Tender: MSME-registered companies get a chance to deposit money while applying for government tenders.
- Subsidy in Patent and Trademark: If you have registered a trademark or patent for your brand, you will get a huge subsidy of up to 50% in government fees.
- Protection from Delayed Payments: If any big company borrows your money, then under the MSME Act, you can file a complaint and will have to pay them the money, along with interest.
Role of Udyam Certificate in Future
In these times, the Indian government is moving towards “One Nation, One Registration”.
- Now, Udyam Registration has been made Mandatory (Anivarya) to avail the benefits of government schemes.
- It is even demanded to become a seller on e-commerce platforms like Amazon and Flipkart.
- This proves to be a powerful document even in the business of Export-Import.
Government Identity: Giving every business its own digital identity.
- Collecting the right data: It helps the government to know how many MSMEs are operating in the country, so that better policies can be made for them
- Preventing fraud: Through this certificate, only legitimate and genuine businesses can avail the benefits of government subsidies.
- Single Window System: Making the business registration process paperless and easy.
