To promote small and medium businesses in India, the government periodically introduces new schemes and changes. The previous UAM, or Udyog Aadhaar Memorandum Registration system, was introduced by the government for MSME businesses. However, the government later updated it and made it more simple by introducing a new system, "Udyam Registration".
Even today, many businesses have old UAM registrations and have many questions:
- Is UAM still valid?
- Is Udyam registration necessary?
- How to convert from UAM to Udyam?
- What are its benefits?
If you already have a UAM registration, this article will prove very useful. Here, we will explain in simple terms what existing UAM registrants should know about Udyam Registration.
What was UAM registration?
The Udyog Aadhaar Memorandum was an old MSME registration system. It was launched to provide easy registration to small businesses.
In this, businesses could register online using their Aadhaar number.
But in 2020, the Indian government came up with a new system that will provide greater transparency while registering for an MSME, and that system is known as the Udyam Registration system.
What is Udyam Registration?
Udyam Registration is a new online registration system launched by the Ministry of MSME. It serves as the official identification for MSME businesses.
In this system, businesses receive:
- Udyam Registration Number
- Udyam Certificate
- Government MSME Identification
This entire process is online and quite simple.
Is UAM registration still valid?
The government has replaced the UAM system with Udyam Registration. Therefore, it is required to migrate old UAM registration into Udyam Registration.
If the MSME doesn't migrate into Udyam Registration, then the MSME may face difficulties in receiving different forms of benefits from the government.
Therefore, MSMEs with UAM need to upgrade to Udyam Registration through the submission of the Udyam re-registration form.
Why should existing UAM registrants get Udyam Registration?
Many people wonder why a new registration is necessary when they already have a UAM.
But Udyam Registration has become necessary for several reasons.
Necessary to avail benefits of government schemes
Udyam Registration is required for most MSME schemes today.
If you only have an old UAM, you may face problems in many schemes.
Provides an updated MSME identity
Udyam Registration is a new and updated system. It ensures that business information is accurately updated in government records.
Helps with loans and subsidies
Banks and financial institutions now place greater importance on the Udyam Certificate.
This can make it easier to obtain:
- Business Loans
- MSME Loan Schemes
- Subsidy Benefits
Easier to obtain such benefits.
Online Verification Makes Easier
Udyam Registration is completely digital/online.
This makes online verification of the business easier.
How to Change from UAM to Udyam Registration?
If you already have a UAM registration, you can easily update it to Udyam registration.
Easy steps are given below.
Step 1: Go to the Authentic Udyam Portal
First, open the Udyam Registration website.
There, you will find the option of Udyam Re-registration.
Step 2: Fill Udyam Re-registration form
A new webpage is open, and you have to fill out the Udyam re-registration form.
Step 3: Enter Aadhaar and PAN Details
Now the business owners':
- Aadhaar information
- PAN number
- Business details
And many things need to be entered in the re-registration form.
Step 4: OTP Verification
Go ahead and verify the OTP sent to your phone/email.
Step 5: Final Submission
Finally, submit your registration request after verification of all details.
On verification completion, you will be provided with a fresh Udyam certificate via your email.
What are the advantages of Udyam Registration?
Udyam Registration is not just a certificate. It offers many benefits to your business.
Easy Business Loans
Many government loan schemes are available for MSME businesses.
Udyam-registered businesses can get help with loan approval.
Opportunities in Government Tenders
MSME businesses are given priority in many government tenders.
Business credibility increases
When your business is registered with the government, customers and companies trust you more.
Payment Security
Under the MSME Act, you have the right to complain if you don't receive timely payments.
A major help for small businesses
The process of Udyam registration can become highly beneficial for small enterprises and startups.
What should be considered while registering at the Udyam Portal?
While registering your business on the Udyam portal, it is essential to consider the following points:
- Correct details of Aadhaar and PAN
- Keep your mobile number active
- Enter business information correctly
- Avoid fake websites
- Keep all documents correct
If you provide incorrect information, it may result in rejection of the application.
Is GST necessary for Udyam Registration?
Yes, in some cases.
If your business doesn't fall within the GST scope, registration may be possible without GST.
However, where GST is required,
It is mandatory to provide GST information there.
Who can obtain Udyam Registration?
Udyam Registration is available for these businesses:
- Small manufacturers
- Shopkeepers
- Online businesses
- Freelancers
- Home-based industries
- Service providers
- Startups
- Traders
Does Udyam Registration need to be Renewed Regularly?
No, Udyam registration is generally considered lifetime valid.
But it may be necessary to update it if business information changes.
You Can Apply for Udyam Annexure Download Through Udyam Portal
Conclusion
If you have an old Udyam registration, updating it to Udyam registration is crucial. This is important not only for government regulations but also for the growth of your business.
Udyam Registration provides a new identity, government benefits, loan facilities, and market confidence to the business. In today's digital and competitive world, every MSME business must obtain an updated registration.
If you are also an existing UAM registrant, then get Udyam registration done in time so that there is no problem in the future.
