Udyam registration for startup company

Stepping into a new company venture is always a thrill but it entails administrative and legal work. One of them is the Udyam registration which new business venture owners in India should consider. The government of India started this program to offer some privileges and recognition from the government to start-ups and small companies. So in this post let me help you understand what Udyam registration for a startup company is all about, why it is needed, and the process of doing it so that your company will be on the right track.

Understanding Udyam Registration

What is Udyam Registration?

Also known as Udyog Aadhaar, Udyam Registration is an online scheme initiated by the Ministry of Micro, Small, and Medium Enterprises, India. It is specifically aimed at helping small and micro businesses leverage government support and a set of benefits.

Benefits of Udyam Registration

Some of the benefits of Udyam registration for startup company online includes: 

• Small interest-bearing loans and subsidies are among some of the fiscal policies available to registered companies.
• It is common for banks to give first priority to businesses that are registered under enterprises when financing so that lending capital can be attained.
• To support the Fragmented Sector, the Udyam Registration opens up the possibility of accessing government contracts and bidding for companies.
• Udyam means that most businesses registered under this act can pay a low fee for trademark and patent registration.

Why Does Udyam registration for startup company Matter for Your Startup?

Here are some of the reasons why Udyam registration for startup company online matters: 

Unlocking Possibilities

Registering your firm under the new regime of Udyam system unlocks tremendous potential in business ventures. For instance, tax shields, special loan rates, and numerous government services your company may have an edge over your competitors.

Enhanced dependability

Udyam Registration Certificate gives authenticity to your business. Others like customers, partners, and investors will have faith in your company since they will be in a position to estimate that you are an approved company.

Easy financial access

The first problem that is likely to affect firms is sourcing for finance. In this way, your firm has the opportunity to obtain many governmental financial benefits, including lower interest rates and non-secured loans on pledging collaterals because of its MSME registration.

Who Can Register Under Udyam?

Sole proprietorships, partnerships, and private limited corporations are just a few business entities accessible for  Udyam Registration online. A company has to satisfy the following requirements to be qualified:

• Manufacturing Units: These might help companies involved in good manufacturing or production register.
• Service providers: Udyam may also be registered by Companies that are service-oriented.
• Micro-enterprises: Micro-enterprises should have a maximum investment of ₹ 1 crore; small businesses may invest up to 10 crores.

Udyam registration for startup company Process

This detailed, accurate step-by-step guide will help you through the Udyam Registration Certificate on UdyamRegistrations.org.

• Consult the official website first- www.Udyamregistrations.org
• Visit the home section and there should be a form that will allow registration.
• Add the Aadhaar information. For all proprietorship organizations, the PAN number and the Aadhaar number of the proprietor are required. In the case of Partnership firms, the Aadhaar number of the managing partner is compulsory. To register for a company, one needs the Aadhaar number of the authorized signatory for the company.
• In the box below, kindly enter the name as it is written on the Aadhaar card.
• Type the code and click the button ‘Validate and Generate OTP’. An OTP is received for the particular cellphone number linked with the Aadhaar for registration.
• But if you have registered a mobile number, then please enter the OTP received in the particular mobile number in the OTP verifying field.
• To proceed to the next level of validation, click on the ‘Next, Validate OTP’ button.
• Enter the number PAN related to the company or the individual.
• Choose from proprietorship, partnership, corporation, etc.
• Click Validate PAN here. The PAN data will be transferred to the Income Tax database by the system.
• Now, you should enter the name of the company or the corporation:
• Select one out of the many business structures mentioned such as proprietorship, partnership, and company among others.
• It is essential to give the business address, postcode, region, and state of the business.
• Now enter the original email ID and provide a valid cell number.
• Choose manufacturing or service as the predominant type of business activity within the organization.
• Determine the current NIC codes which are relevant to the operation of the company.
• Last but not least, to finalize the process and become a registered user, click on “Submit”.
• This Udyam Registration Certificate will be mailed to you to the registered e-mail ID of the user on the portal. This certificate contains your firm’s URN and some other details.
• When you complete the MSME registration process, check your mail for the Certificate.
• It also contains the option to download and print the certificate for further use in its use and in all the cases where it is needed.

Common Challenges and Solutions in the Udyam Registration Process

Although the registration of the systems of the startup company through Udyam is as easy and simple as it can be, there are some of the challenges that a company, particularly a startup company may encounter. Knowledge of these common problems as well as their respective solutions shall go a long way in enhancing a rather smooth registration process.

Validation of aadhaar

Among the procedures involved in the process of Udyam Registration is the Aadhaar number verification which undoubtedly is a challenge. As you fill the required details, it is advised that you cross-check that the cellphone number that is associated with your Aadhaar is active and valid. OTP receiving issues may force you to update your Aadhaar details at the nearest Aadhaar center. Also one should verify for any typing errors that may have been made on the Aadhaar number given.

Technical problem

Minor inconveniences; for instance, matters such as delayed loading of page, an error while filling the form or in the process of filling a form, and occasional offline of the portal may interfere with the registration process on the portal.

Another essential step is to attempt to access the site during non-peak times so that you are not ‘hammering’ the server with a constant connectivity conduit.

Suitable NIC code

The process of selecting an appropriate NIC Code might be time-consuming for some firms, especially in case they aren’t sure which NIC Code fits their activity type the best or if they have multiple activities.

In case of doubts, it is recommended to see the NIC code list in order to define the right NIC code for the list of activities performed by the business.

Investment and turnover

Specifically, it is possible to state that for particularly young companies which may not yet have a definitively unambiguous record of their finances, the number of criteria that pertain to investments and turnovers may seem especially intricate. Specifying the particulars of the amounts to be spent on plant and machinery or equipment or the total turnover of the company may sometimes be a problem.

Conclusion 

For any Indian startup firm, business entity credit and support prospects depend on udyam registration. It provides access to government contracts, financial support, as well as other opportunities that will help your business flourish.

The Udyam registration for a startup company might perhaps be the very first step towards the realization of the full dream of the company. So, instead of wasting your time, go register that company today and prepare the way for a better future.