Udyam portal

Why in news?

• New online system of Udyam registration crosses 50 lakh MSMEs mark.

About Udyam portal:

• The government has introduced the new Udyam Registration to replace the older MSME and Udyog Aadhar registrations from July 1, 2020 onwards.
• Organizations which are engaged either in manufacturing or production or processing or preservation of Goods or in the providing or rendering of services are eligible for registration under the new Udyam Registration.
• In other words, the enterprises which are engaging only in trading i.e. buying, selling importing, exporting of Goods are not eligible for applying for Udyam Registration.
• The applicability of the Udyam registration is for Micro, small and medium sized organizations.
• The categorization is summarized below:
• 

How MSMEs are registered?

• Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online.
• The application is based on self-declaration with no requirement to upload documents, papers, certificates or proof. However, the registering person needs to provide certain details regarding the business like investment value, nature of business among others.
• On registration, an enterprise will be assigned a permanent identity number to be known as “Udyam Registration Number”.
• An e-certificate, namely, “Udyam Registration Certificate” shall be issued on completion of the registration process. Aadhar Number is required to initiate the registration process

Benefits of MSME registration:

• The applicant will receive the benefits of all the government schemes such as an easy loan, loan without guarantee, loans with subsidized rates of interest etc.
• The applicant will receive financial support for participating in foreign expos to showcase their products.
• Registration would facilitate hassle-free opening of current bank accounts in the name of the business.
• It would also allow businesses to apply for government micro business loans and other such related beneficial schemes.

PRACTICE QUESTION:

 Udyam portal, sometimes seen in news, is associated with:

(a) Ministry of Commerce and Industry

(b) Ministry of Skill Development and Entrepreneurship

(c) Ministry of Heavy Industries

(d) Ministry of Micro, Small and Medium Enterprises

Answer