Udyam Registration For Public Limited Company
Udyam Registration is a government-mandated process introduced by the Ministry of Micro, Small, and Medium Enterprises (MSME) in India. It provides official recognition to businesses as MSMEs and allows them to access a host of benefits, including financial aid, subsidies, easier compliance, and credit facilities. For Public Limited Companies, getting Udyam Registration not only helps enhance credibility but also opens up several growth avenues through government schemes.
Although Public Limited Companies are typically associated with large-scale operations, many operate within the financial thresholds that classify them as MSMEs. As a result, they too can take advantage of Udyam Registration, provided they meet the eligibility criteria.
What is a Public Limited Company?
A Public Limited Company (PLC) is a corporate entity that offers its shares to the general public and is listed on a recognized stock exchange. These companies are governed under the Companies Act, 2013 ,and are known for raising capital through public offerings. They must adhere to stringent compliance norms and disclosures. Despite their size and scale, several PLCs qualify as MSMEs based on their investment and turnover, making them eligible for Udyam Registration.
Eligibility Criteria for Udyam Registration
To be eligible for Udyam Registration, a Public Limited Company must fall under one of the MSME categories as defined by the Government of India:
| Category | Investment in Plant & Machinery/Equipment | Annual Turnover |
|---|---|---|
| Micro | Up to ₹2.5 crore | Up to ₹10 crore |
| Small | Up to ₹25 crore | Up to ₹100 crore |
| Medium | Up to ₹125 crore | Up to ₹500 crore |
Benefits of Udyam Registration for Public Limited Companies
1. Access to Government Schemes:
PLCs registered under Udyam can avail benefits under schemes like the Credit Guarantee Fund Scheme, Public Procurement Policy, and others tailored for MSMEs.
2. Collateral-Free Loans:
Banks and NBFCs offer collateral-free loans to MSMEs, which can support business expansion without jeopardizing assets.
3. Subsidies and Incentives:
Registered MSMEs are eligible for subsidies on ISO certification, patent registration, and electricity bills.
4. Ease of Compliance:
Government initiatives often provide simplified regulatory and tax compliance for MSMEs.
5. Priority in Government Tenders:
MSMEs receive preference in public procurement, enhancing the business prospects of PLCs involved in supplying goods or services to the government.
6. Protection Against Delayed Payments:
MSMEs are legally entitled to receive payments within 45 days, and delayed payments attract penal interest.
7. Tax and Interest Rebate:
Interest subsidies and exemption schemes under income tax laws make the financial landscape more favorable for registered entities.
Udyam Registration Process for a Public Limited Company
Registering for Udyam is a straightforward process that can be completed online in just a few minutes. Here's how it works:
Step 1: Visit the Udyam Registration Portal
First, go to the Udyam Registration Portal
Step 2: Fill in all details in the Udyam Registration Form
Enter all required information such as Aadhar number, PAN, business name, type of organization, address, bank account details, and information related to business activities.
Step 3: Make Online Payment for Your Udyam Application
After filling in all the necessary details, make a secure payment through the portal.
Step 4: Application Processing by Registration Executive
After payment, a registration executive will review your application to ensure that all details are accurate and complete. They will also request an OTP (One-Time Password), which will be sent to your registered mobile number.
Step 5: Receive Udyam Certificate in Your Email
Within 1 to 2 working hours, your Udyam Registration Certificate will be sent to your registered email address. This certificate will include a unique Udyam Registration Number and a QR code for verification.
Also Read: Know About Why is Udyam better than Udyog in India
Conclusion
While Udyam Registration is often associated with smaller businesses, it is equally beneficial for Public Limited Companies that qualify under the MSME investment and turnover thresholds. By registering, a PLC not only becomes eligible for various government incentives but also boosts its operational efficiency and market competitiveness. With a straightforward online process and lifetime validity, Udyam Registration is a strategic move for any qualifying Public Limited Company aiming for sustained growth in a competitive market landscape.
FAQs for Udyam Registration for Public Limited Company
1. Can a Public Limited Company apply for Udyam Registration?
Yes, a Public Limited Company can apply for Udyam Registration if it meets the prescribed MSME classification limits based on investment in plant and machinery or equipment and annual turnover.
2. What are the eligibility criteria for Udyam Registration for Public Limited Companies?
To be eligible, the company's investment in plant and machinery must be up to ₹50 crore and turnover up to ₹250 crore, based on the MSME definitions for micro, small, and medium enterprises.
3. Is it mandatory for Public Limited Companies to register under Udyam?
No, it is not mandatory. However, registration is recommended for availing various government benefits and schemes exclusively available to MSMEs.
4. What documents are required for Udyam Registration of a Public Limited Company?
Key requirements include:
- PAN and GSTIN of the company
- Aadhaar number of the authorized signatory
- The company’s business and contact details
- Investment and turnover data
5. Is Udyam Registration applicable for listed companies?
Yes, even listed Public Limited Companies can apply, provided they meet the MSME thresholds for investment and turnover.
6. Does Udyam Registration provide any financial benefits to Public Limited Companies?
Yes, it provides access to collateral-free loans, credit subsidies, lower interest rates, and priority in government tenders and procurement policies.
7. How long does it take to get Udyam Registration for a Public Limited Company?
Typically, the registration is processed instantly through the online portal, and the Udyam Certificate is issued shortly after successful verification.
8. Can a Public Limited Company edit its Udyam Registration details later?
Yes, after registration, the company can log into the portal and update or correct its business details whenever necessary.
9. Does Udyam Registration need to be renewed periodically?
No, Udyam Registration is valid for a lifetime and does not require renewal. However, companies must update their information if there are any changes in business status or financials
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