To address various issues, the government of India has launched a simplified MSME registration scheme called Udyam Registration. This scheme aims to ease the process for businesses to register as MSMEs and reap the benefits offered by the government. In this article, you shall learn the primary goal of the MSME Udyam registration scheme.
The new simplified Udyam registration scheme is the brainchild of the Indian government to ease the business registration process in India. The Ministry of MSMEs has launched the scheme as part of its recently concluded Make in India initiative.
The Udyam Registration Act 2016 was passed by parliament on June 7th, 2017. It came into effect on July 1st, 2017 and replaced the existing laws that governed business registration in India. This Act was implemented after consultation with various stakeholders, including industry bodies such as CII (Confederation of Indian Industry) and FICCI (Federation of Indian Chambers of Commerce & Industry).
Udyam registration process
The new Udyam registration scheme will help businesses register as an MSME or micro-small or medium enterprise without going through too many bureaucratic steps or procedures which may prove difficult for smaller businesses run by entrepreneurs with little knowledge about how things work at scale.
The process is simple and straightforward and can be completed in just a few steps. Under this scheme, MSMEs are classified into three categories: Micro Small Enterprises (MSEs), Small Medium Enterprises (SMEs) and Very Small Industries (VSI). The new scheme reduces red tape by unifying all state-level schemes under one umbrella.
This means you can register as an MSME or SME anywhere in India—even if your business falls under multiple state-specific schemes—and enjoy streamlined services throughout the country without having to deal with additional paperwork or fees.
The MSME Udyam Registration scheme is a government initiative to promote micro, small and medium enterprises (MSMEs) in India. It aims to boost the employment situation in the country and promote more businesses in India.
The main goal behind this scheme is to provide an opportunity for MSMEs to compete with large companies effectively by providing them with resources such as land plots, financial assistance and easy access to government tenders.
It will also help create jobs for thousands of people across India by encouraging more entrepreneurs from rural areas to enter into business ventures that they can run successfully without having any prior experience or knowledge about running businesses.
Businesses can upload information about their business on the portal and fill out forms that various government agencies require (e.g., labor commissioner). They can also proceed online and pay fees using the portal.
The portal will provide a mechanism for businesses to obtain a company registration number and file taxes. MSME Udyam Registration will also provide MSMEs with the option of applying for a PAN card, which is required by law for all businesses with an annual turnover of more than Rs. 20 lakhs. A pan card issued by the Income Tax Department has a ten-digit alphanumeric number.
The PAN card can be used as proof of identification, address and tax compliance. The PAN number is also mandatory for filing returns and making payments to the government.
Conclusion
Udyam Registration is an initiative of the Government of India to provide a single-window solution for MSMEs to register their enterprises and receive benefits. It promotes MSMEs and gives more employment opportunities in the country. The scheme was launched to simplify the registration process, eliminate duplication, and reduce paperwork.
