What Steps Are Required for Udyam Registration?
Udyam Registration is a process introduced by the Government of India to promote the growth and development of Micro, Small, and Medium Enterprises (MSMEs). This process replaces the older method of MSME registration known as Udyog Aadhar. The objective behind Udyam Registration is to streamline the process of registration, to make it tech-enabled, paperless, and simple. MSMEs who have their Udyam Registration certificate are now eligible to avail of numerous benefits and schemes such as subsidies, loans, and tax rebates.
In this article, we will discuss in detail the steps required for Udyam registration. Additionally, we will also look into the importance of PAN card status for businesses, and the process of e-pan download.
Required Documents for Udyam Registration
Before we dive into the actual steps involved in Udyam Registration, it is important to understand the documents required for the process. Here is a list of all the documents that applicants will have to produce while applying for the Udyam Registration:
- Name of the applicant/business owner along with their Adhaar Card Number.
- Business PAN Card Number – In case it is not available, an application can be made for it.
- Type of business organization – Proprietorship, Partnership, Limited liability Partnership, Private Limited Company, Hindu Undivided Family, etc.
- Contact details of the applicant/business owner.
- Income tax returns of the last three years for proprietorship, partnership, and Hindu Undivided Family.
- Partnership deed, registration certificate, GST return of a partnership firm.
- Memorandum of Association, Articles of Association, and Incorporation certificate for private limited companies.
- For Limited Liability Partnership, registration certificate, LLP Agreement is required.
- Bank account details.
Now that we have seen the documents required let us move on to the actual process.
Steps for Udyam Registration
Step 1: Visit Udyam Registration Portal
The first step in Udyam Registration is to visit the official website https://udyamregistration.gov.in/parameters_uam.php. Applicants will need to create a new user account by clicking the ‘New Registration’ button present on the portal’s homepage.
Step 2: Filling In the Company Details
After creating a new user account, the applicant is taken to a new page that requires them to fill in the company’s details. This includes basic information like the company’s name, location, type of organization, and date of incorporation.
Step 3: Choosing Social Category and Sub-Category
In this step, the applicant needs to select their company’s social category, which includes whether it is owned by an SC/ST or not. The applicant must also select the company’s sub-category, such as whether it is a manufacturer or a service provider.
Step 4: Filling in PAN Details
In this step, the applicant needs to fill in their Permanent Account Number (PAN). PAN is an essential document that is required for various business transactions and for creating legal entities in India. An applicant cannot complete the Udyam Registration process without having a PAN card.
Step 5: Validating PAN Details
After filling in the PAN details, the Udyam Registration portal will validate the PAN details with the Income Tax Department’s database. This step is necessary to avoid double registration by the same applicant. Once the PAN details are validated, the applicant needs to choose their enterprise type from this list:
- Proprietorship
- Partnership Firm
- Hindu Undivided Family
- Private Limited Company
- Limited Liability Partnership
Step 6: Filling in Aadhaar Details
In this step, the applicant needs to fill in their Aadhaar Card details. Aadhaar is a unique identification number issued by the Government of India to residents of the country. A digital signature is mandatory to proceed from this step onwards.
Step 7: Business Details
In this step, the applicant needs to fill in the business details such as the company’s bank account number and details of the firm’s activity. The applicant needs to mention the date of commencement of business operations, the number of employees, and the investment in the enterprise.
Step 8: Verification
After filling in all the details, the applicant needs to verify the details entered on the Udyam Registration portal. The applicant must check all the details to ensure that they are correct and true. In case of any errors, the applicant can make changes to the details.
Step 9: Submission
After verifying all the details, the applicant needs to submit the application. Once submitted, the applicant receives an application number that needs to be retained for future reference. After the approval, the applicant receives a Udyam registration certificate.
Importance of PAN Card Status for Businesses
PAN Card is a unique identification number issued by the Indian Government’s Income Tax Department. PAN Card status is essential for businesses as it is required for various transactions, including opening a bank account and filing Income Tax returns. The PAN Card status helps in tracking the income and taxes paid by the business. It is also used as proof of identity, and it is essential for company’s incorporation in India.
The PAN Card status serves as a way of reinforcing accountability and transparency in businesses. It helps companies provide transparency in their financial operations. As a result, the company builds trust with suppliers, customers, and other stakeholders. PAN Card status also helps the Government to monitor taxable transactions and promote tax compliance.
E-Pan Download
E-Pan downloading is a process through which individuals or businesses can get a digital copy of their PAN Card. The process of e-pan download is simple, and it can be done online. The applicants can visit the official e-filing website of the Income Tax Department (https://www.incometaxindiaefiling.gov.in/home) and download the PAN Card.
The Process For e-Pan Download Is As Follows:
Step 1: Visit the official e-filing website and click on the ‘Instant e-PAN’ link.
Step 2: Enter your Aadhaar Card Number and verify identity via OTP
Step 3: After verification, a link to the e-PAN will be sent to the registered email address.
Step 4: Click on the link to download the e-PAN.
Conclusion
Udyam registration is an essential requirement for MSMEs in India. It enables businesses to access various benefits and schemes provided by the Government. The process of Udyam registration is simple, and it can be done online by submitting the necessary documents and details. PAN Card status is crucial for businesses as it is required to conduct transactions and file income tax returns. It establishes transparency in the financial operations of the company. Finally, the process of e-PAN download is simple and can be done online through the Income Tax Department’s official website.
Therefore, MSMEs must register for Udyam registration and must comply with all the regulations laid down by the Government to avail of the benefits and schemes available to them.