Wondering how to go about registering as an udyam entrepreneur? All you need to do is just follow the simple steps which are mentioned below:
Step 1 – Learn about the registration process by checking its website at https://udyamregister.org/. You may also call up any details regarding the latest notifications issued by DIPP from this site’s homepage itself.
1) The concerned DIPP regional office shall post all the relevant forms online at its website for all prospective udyam entrepreneurs. These forms would include the following:
- Udyam application form – This is a simple form containing details about your business, i.e., nature of the industry, number of people employed by it, current turnover (in case you already have any), etc. b) Self-declaration – In this form, you would need to fill in details regarding your education qualification and work experience. c) Disclosure of interest and declaration – This is another single-sheet form that may require you to declare whether or not you are related to anybody else who has already registered under the udyam scheme and also if you have any pending court cases against you.
2) You may also ask for help from any person having relevant experience under the udyam registration scheme for advice and suggestions that could be valuable while filling up the above forms as all your details would be considered by our representatives during their final approval process.
3) Once your forms are complete and submitted with correct documents, calling up the udyam registrar and following further formalities, you shall be issued an udyam registration certificate.
4) The udyam certificate will contain details about your business such as:
a) Name and address of the registered office b) Nature of industry c) Details regarding whether your organization is a start-up or existing one d) Names and addresses of other company directors e) Number of employees f) Other important details required for future reference
5) Once you are registered as an udyam entrepreneur, you can open a bank account in any commercial bank by producing your udyam certificate. This shall allow you to receive payments from various sources like customers, suppliers, etc., without any hindrance. You may also receive payment against goods purchased or services rendered to any other registered udyam registrant.
Step 2 – Head to your regional office of the Ministry of Micro, Small, and Medium Enterprises (MSME) to apply for registration as an udyam entrepreneur. This can also be done online by visiting the MSME website at https://udyogadharcertificate.in/.
Follow these simple steps:
1) Check the relevant instructions posted on your local MSME regional site regarding applications for new registrations as an udyam entrepreneur and obtain all the necessary forms from there. These forms include all those mentioned above along with some others too like I Declaration) Udyam enterprise form ii) iii) Payment details iv) Business plan
2) Make all necessary payments as laid down by MSME authorities regarding registration fees and taxes etc., following which you shall be issued an udyam registration certificate.
3) As soon as you receive your udyam registration certificate, you are eligible for receiving financing from banks under various schemes meant for micro-units. You must check all these before applying for any loan since each bank has its own set of rules regarding this. This will include:
a) The quantum of finance available for taking up such a loan b) The amount that can be sanctioned against the existing equity balance in your company c) The rate of interest applicable to your loan d) Eligibility requirements e ) Any other rules and regulations
4) You will also have to submit a copy of both sides of your Udyam certificate along with all documents furnished by you at the time of applying for any bank loan. Usually, this is done online after logging into the online banking facility provided by the concerned bank. Each application form would take you through another set of verification processes like transaction history, account balances, etc., and once completed it shall generate an udyam financing promotion code. This should then be submitted to your MSME regional office whereas your UCR should be submitted to the concerned bank branch together with a cover letter requesting any loan.
5) As soon as you receive approval from your bank and all the necessary procedures are complete, you shall be issued a cheque or draft mentioning the amount sanctioned, the interest rate applicable, etc. This is then deposited by you into an account opened by any registered udyam registrant of your choice who, in turn, deposits it into his/her account which can then either be utilized in further expansion or even towards meeting expenses incurred during the process of setting up of your business unit and those connected with it like labor costs, marketing expenses, etc.
6) It is important that even while applying for any bank loan you keep a strong track record of all your transactions. This will include:
a) Filing income tax returns and following all procedures laid down by the tax authorities according to the type of business b) Keeping proper records of customers, payments received from them, sales made to them, purchases made from them, etc., c) Using proper accounting software like QuickBooks for recording all these transactions d) Maintaining an updated bank reconciliation statement e ) Having a proper budget prepared to estimate cash inflows and outflows at regular intervals f ) Maintaining strong relationships with your suppliers g) Allotting sufficient time towards marketing h ) Regularly visiting trade shows I ) Applying for production license s j ) Taking care not to indulge in over-expansion
9) This shows that udyam registration is an easy way to start your business without worrying about a lot of things that may throw you off course later on. It also helps in taking care of some legal formalities at the outset itself and reduces a lot of paperwork for any small business owner or entrepreneur who might not have too much work experience but still are quite capable of running their businesses by themselves.
10) Udyam registration also gives you access to several MSME assistance schemes for which you would require applying once every year. These can be grants, subsidized loans, interest waivers, etc. The whole procedure varies depending upon the type of assistance being applied for and should be confirmed by the concerned authorities before proceeding further.
11) One of the main advantages of udyam registration is that it gives you a boost to begin your business in an organized manner without incurring huge expenditures.
Suggested Read- udyam registration certificate
So if you are planning on starting up your own business anytime soon, go ahead and register yourself for udyam registration today! It will help you save time later on and ensure a smooth passage towards your business growth.