Micro, small, and medium-sized enterprises enlisted under the MSME law in Tamil Nadu are awarded Udyam Registration, or MSME registration. In Tamil Nadu, the following are the key objectives of Udyam registered enterprises:
- Empowering small, medium, and micro businesses to curb poverty and unemployment on a broader scale.
- As a means of protecting local small businesses from economic harassment by large companies.
- All small scale manufacturers and service providers will be able to benefit from the different central and state programs under one umbrella.
Udyam Registration requires which documents?
Udyam policies in Tamil Nadu can only be obtained by entities that have submitted all the required documentation.
In addition to their Aadhar details, PAN cards are the primary prerequisites for obtaining Tamil Nadu Udyam registration. During the verification process, the PAN and Aadhar of the applicant are verified if the company is a partnership.
The Udyam portal requires the PAN card and Aadhar of all applicants with a private limited company or limited liability partnership. When an unauthorised signatory must first obtain an Aadhaar card by visiting the nearest enrollment center when the candidate does not have an official Aadhar card. the entity receives his Aadhar card, the Udyam registration method is set to be kicked off.
Who must avail of Udyam registration in Tamil Nadu?
It is not recommended that all businesses complete the Udyam registration process categorised under micro, small-scale and medium-sized firms. They must register themselves as per the provisions laid down by Udyam, particularly for the manufacturing sector.
Enterprises that should register themselves:
|Category of business||Industrial sector|
|Micro businesses||Not exceeding more than ₹25 lakh financing in machinery and plants.|
|Small scale enterprises||Not exceeding more than ₹5 crores financing in machinery and plants.|
|Medium-sized enterprises||Not exceeding more than ₹10 crores financing in machinery and plants.|
In order to successfully register with Udyam, what information must be provided?
Aadhar cards are the first and foremost requirement, but in addition there are several papers that must be submitted. We have listed them for
- According to the Aadhar card, the applicant’s official name must be connected to his/her mobile number in order for the application to be approved.
- It is required that a valid telephone number be
- PAN card number (be it LLP/ Pvt./ company/ partner PAN ID)
- There should be one primary email address
- Sexual orientation
- Physically challenged individuals should have a checkbox available
- It is necessary to mention social caste
- Identifying information about the enterprise
- Entity characteristics
- Office address for the company’s operations
- Business commencement date that is accurate
- Please provide us with the details of your company’s banking account or your personal account. Adding a bank account to a business is only possible with the permission of the proprietor.
- IBAN and IFSC codes of a bank account
- There must be a branch number provided by the bank
- Manufacturers or service providers declare their major activities.
Selecting the subcategory is necessary if choosing the option ‘manufacturing’. Likewise, service firms are subject to the same rules.
You must provide your NIC code. In the operational, executive, and managerial departments, you must state the current number of employees. A filing of Income Tax returns is also required by Udyam regulatory body for auditing until date transactions. You must present your GSTIN (if applicable). There must be an indication of whether the business is located in the city or the countryside.
What you need to know about Tamil Nadu Udyam registration
- The filing fee for an Udyam application has not been set. During Tamil Nadu Udyam registration, all you have to do is submit an Aadhaar number to complete the KYC requirements.
- When the authority is dealing with an ownership firm, the Aadhar card produced belongs to the proprietor; when we are dealing with a partnership business, the card belongs to the managing partner. If the Karta belongs to a Hindu family, the Aadhar details will be needed.
- An official signatory or the business entity submitting an application must provide GSTIN and PAN details to the Ministry when dealing with a cooperative society, limited partnership, or a trust.
- A firm that is enlisted as a Udyam in Tamil Nadu for the first time is allowed to restore any data that was missing in previous years when the PAN card was not available.
- Multiple registrations of companies under Udyam enlistment are not permitted. Bringing any activity into Udyam, whether it is manufacturing, service, or an amalgam of both, is possible.
- Re-registration for Udyam is required for anyone holding UAM or EM-II certification, or any equivalent status supplied by the MSME council.
- Under the Income Tax Act, clause 27, those who intentionally misrepresent or attempt to conceal the auto-disclosed figures and data would be liable for severe punishments.
- Because firms have provided their GST and PAN details, the database will reveal turnovers in various sectors automatically. Transparency is maximised in this manner.
Registration with Udyam has several benefits
Tax refunds are one of the most important benefits for businesses. In addition to this, enterprises can also gain benefits from lower interest rates on bank loans. There is a much larger drop in interest rates (around 1-1.5%) compared to regular borrowing.
In contrast to the credit payment period of 10 years previously available to small and medium businesses, the Minimum Alternate Tax can now be paid over 15 extended years.
With simpler credit availability, the establishment of low-cost manufacturing plants has become easier. A one-time payment option is also available to settle unpaid charges.
There are no processing fees associated with Udyam registration since it is paperless. Self-declaration is the only basis for it. PAN, Aadhar, and GST details will be required from the registrant during the online process. Data gathered from centralised databases automatically determines the firm’s turnover.
There is no limit to the number of accounts that business owners can create for Udyam. On April 1, 2021, GSTIN inclusion became mandatory.