The Union Ministry of Micro, Small and Medium Enterprises (MSME) announced a new way of identifying, classifying and registering MSMEs. The name given to it was ‘Udyam Registration’. The word was out on 26 June 2020 and was finally implemented on 1 July 2020. A new portal was also declared for registering the company under MSME.
Udyam Registration is a type of government registration that is provided along with a certificate of recognition and a unique number for MSME certification and is therefore also called MSME Registration. Udyam Registration's main objective is to simplify the time-consuming and complex process of registering any enterprise under Micro, Medium and Small Enterprise (MSME). Any form of an agency such as an LLP or a private limited company can be registered with the Udyam portal.
For Micro, Small and Medium Businesses, MSME serves. The Indian government has established a separate ministry to finance and promote MSMEs, which is such a critical force in India's emerging economy. The MSMED Act of 2006 provides the MSMEs in the form of cheaper loans, tax incentives and different schemes and subsidies, with special support from the Indian Government.