India's Self-Help Groups (SHGs) have been moving in the right direction towards women and rural entrepreneur empowerment. SHGs not only economically empower members, but they also promote small business empowerment. In view of the convenience of such groups, the government has now implemented Udyam Registration with benefits.

If you also possess a Self-Help Group (SHG) networked and wish to register your group as an MSME (Micro, Small and Medium Enterprise), then you are reading this article. In this article, we will tell you in simple language how self-help groups can Udyam registration and what the benefits of it are.

What is Udyam Registration?

Udyam Registration is an online registration initiative introduced by the Ministry of Micro, Small and Medium Enterprises (MSME Ministry) of the Government of India. It suggests issuing a unique Udyam Registration Number (URN) to medium and small enterprises, startups, and self-help groups.

Udyam Registration facilitates enterprises to take advantage of government schemes, loans, subsidies, and other financial schemes.

Are Self-Help Groups registered under Udyam?

Yes, exactly! According to the government, Self-Help Groups (SHGs) that merely engage in economic activities such as handicrafts, food processing, textile manufacturing, agricultural produce, or the service sector are also eligible to register under the MSME category.

SHGs can also register Udyam like any other company. 

Documents Required to Register Udyam

Self-help groups need minimal paperwork for registration. The process is very simple and paperless.

Documents Required:

1. Aadhaar Number of Group – Nominee member or head of group's Aadhaar card.

2. PAN Card (Group PAN or Individual PAN) – PAN card of the group or nominee member.

3. Mobile Number – Should be Aadhaar-linked.

4. Email ID – For receiving the certificate.

5. Business Address – Where the group is functioning.

6. Bank Account Details – Group's bank account number and IFSC code.

7. Business Information – Business type, employee number, and turnover per year.

How to Register a Self-Help Group on the Udyam registration portal?

You can register your SHG's on the Udyam registration portal by going through the easy steps given below.

Step 1: Visit the official website

To start with, visit the official MSME website i.e. Udyam registration portal 

Step 2: Click on "New Udyam Registration"

Click the "For New Entrepreneurs who are not yet Registered as MSME" option on the home page.

Step 3: Aadhaar Number Entry

Put in the Aadhaar number and name of the authorized member or head of the SHG. And then click "Validate & Generate OTP."

You will receive a one-time password on your mobile phone number – put it in.

Step 4: PAN Card Entry

Then fill in the PAN number. The information from Income Tax Department records will be automatically filled in by the software.

Step 5: Enter business details

Group name

Nature of business (manufacturing, service, or trading)

Number of workers

Investment and turnover annually

Workplace address

Enter all these details carefully.

Step 6: Bank account and other information

Enter bank account number, IFSC code, and all such details.

Step 7: Submission and declaration 

Once all the information has been entered, check the declaration box and apply. Following registration, your Udyam Registration Number (URN) will be processed.

Step 8: Download the certificate

You can download your Udyam Certificate in PDF after registration.

The certificate is acceptable under government schemes.

Advantages of Udyam Registration by Self-Help Groups

SHGs have numerous advantages and economic benefits after Udyam registration:

1. Priority in government schemes – SHGs are accorded priority in MSME schemes and subsidies.

2. Availability of bank loans – Collateral-free loans at minimal interest.

3. Government tenders – SHGs can now register and supply goods by way of supply on the Government Procurement Portal (GeM).

4. Tax and registration relaxation – The Majority of the states provide for the waiver of tax or fees.

5. Business recognition – Officially recognized by the Udyam Certificate.

6. Training and innovation benefits – Opportunity to attend workshops and training organized by the Ministry of MSME.

Things to keep in mind while applying

1. All the information needs to be identical to Aadhaar and PAN.

2. Sharing false information can lead to the cancellation of the certificate.

3. Maintain your email ID and phone number active to receive the OTP and certificate.

4. One SHG can register for on udyam registration.

5. The certificate is valid for a lifetime; renewal is not necessary.

Conclusion

Self-Help Groups (SHGs) have a major role to play in India's rural and urban economy.

The government's Udyam Registration has also created new opportunities for their development by bringing these entities under the MSME category.

If your team also has any kind of business, it must acquire an Udyam registration.