HOW NGOS AND TRUSTS CAN REGISTER UNDER UDYAM 

How NGOs and Trusts Can Register Under Udyam 

How NGOs and Trusts Can Register Under Udyam 

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In India, the government has taken many steps to promote small businesses and organizations through various support schemes. One of the most important of these is the MSME Registration, which is an online process for recognizing Micro, Small, and Medium Enterprises (MSMEs). This registration helps businesses and organizations get benefits such as easier loans, government tenders, subsidies, and more.

But many people ask, “Can NGOs and Trusts also register under Udyam?” The answer is yes, in certain conditions. If an NGO or a Trust is involved in any economic activity, such as manufacturing or providing services, and it meets the criteria set for MSMEs, it can register under Udyam.

In this article, we will explain everything you need to know about how NGOs and Trusts can register under Udyam, what benefits they get, the eligibility criteria, the process, and important things to keep in mind.

What is Udyam Registration?


Udyam Registration is the new name for what was earlier called Udyog Aadhaar Registration. It is an official government registration for businesses and organizations that fall under the MSME (Micro, Small, and Medium Enterprises) category.

The registration is done online on the Udyam portal, and once you register, you get a unique Udyam Registration Number (URN) and an Udyam Registration Certificate.

This registration helps in identifying genuine small businesses and enables them to get various government benefits.

Can NGOs and Trusts Register Under Udyam?


Yes, NGOs (Non-Governmental Organizations), Trusts, Societies, and Co-operative Societies can register under Udyam if:

  1. They are engaged in business activities (like manufacturing goods or providing services).

  2. They meet the MSME eligibility criteria based on investment and turnover.


It is important to understand that just being an NGO or a Trust is not enough. The organization must be doing business activities that generate income, like selling products, offering vocational training services, operating manufacturing units, or providing consultancy services.

Eligibility Criteria for NGOs and Trusts under Udyam


The MSME classification under Udyam is based on two main factors:

  1. Micro Enterprises: Investment up to Rs. 2.5 crore and turnover up to Rs 10 crore.

  2. Small Enterprises: Investment up to Rs. 25 crore and turnover up to Rs. 100 crore.

  3. Medium Enterprises: Investment up to Rs 125 crore and turnover up to Rs 500 crore.


Benefits of Udyam Registration for NGOs and Trusts


Registering under Udyam can provide many benefits to eligible NGOs and Trusts:

1. Access to Government Schemes


Udyam-registered entities can apply for various schemes such as:

  • Credit Guarantee Scheme


  • Subsidy on bank loans


  • Protection against delayed payments


  • ISO certification reimbursement


2. Easy Bank Loans


Banks often give collateral-free loans to MSMEs. Being Udyam registered helps NGOs and Trusts get such loans more easily.

3. Preference in Government Tenders


Many tenders give preference to MSMEs. With Udyam registration, NGOs can take part in such tenders with less competition.

4. Tax and Compliance Benefits


Udyam-registered organizations may get exemptions or relaxations in certain tax laws and compliance rules.

5. Subsidy on Patent and Trademark


MSMEs can get financial support for registering their intellectual property (like patents and trademarks).

Documents Required for Udyam Registration


The Udyam registration process is paperless and based on self-declaration. But you will need the following details and documents:

Mandatory Details:



  • Aadhaar Number of the managing trustee, president, or authorized person


  • PAN Card of the NGO or Trust


  • Organization name, type, and address


  • Bank account details


  • Business activity type (manufacturing or services)


  • NIC Code (a code representing the type of business)


  • Investment and turnover details


Optional (but useful):



  • GST number (if available)


  • Email ID and mobile number


Step-by-Step Process for Udyam Registration for NGOs and Trusts


Here’s how an eligible NGO or Trust can register under Udyam:

  1. Visit the Udyam Portal: Open your browser's official Udyam Registration portal.

  2. Fill in Business Details: Enter essential details like your business name, type, address, and bank account information. Ensure accuracy in the data.

  3. Review and Submit the Form: Review the information to confirm it's correct. After reviewing, apply.

  4. Pay the Registration Fee: Select your payment method and complete the registration payment.

  5. Receive OTP on Mobile: An OTP will be sent to the mobile number linked with your Aadhaar card.

  6. Enter OTP: Input the OTP sent to your phone to verify your identity.

  7. Complete Registration: Once your details are confirmed, your registration will be completed.

  8. Receive Your Udyam Certificate: Once verified, your Udyam Registration certificate will be generated and sent directly to your email.


Important Things to Remember



  1. NGOs or Trusts must be actively involved in income-generating activities to be eligible.


  2. Charitable work without business activity does not qualify.


  3. One Aadhaar and PAN can be used for only one Udyam registration.


  4. Udyam registration is completely free of cost.


  5. Make sure all details are accurate to avoid rejection.


Post-Registration Requirements


After receiving the Udyam certificate, your organization must:

  • Update details if there are any changes in address, business activity, or turnover.


  • File annual updates on the Udyam portal (especially turnover and investment figures).


  • Use your Udyam Registration Number when applying for government schemes or loans.


Common Mistakes to Avoid



  • Registering without having a real business activity


  • Using incorrect Aadhaar or PAN details


  • Choosing the wrong business type (like selecting “Company” instead of “Trust”)


  • Entering incorrect turnover or investment figures


Note: Now easily Print Udyam Certificate through the Udyam portal

Conclusion


Even in the digital age, where registrations and compliance have become easier, it is still important to understand the rules clearly. NGOs and Trusts can benefit greatly from Udyam registration—but only if they are eligible.

If your organization is running vocational training centers, providing consulting services, manufacturing goods, or offering paid services to the community, you may qualify as a micro, small, or medium enterprise. In that case, registering under Udyam can open doors to a wide range of financial, legal, and professional benefits.

Just make sure to follow the correct process, provide the right information, and update your records regularly. Udyam registration is more than just a certificate—it’s a recognition of your contribution to India’s economy.

 

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