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CS Executive · Setting Up of Business, Industrial and Labour Laws · Identifying Laws applicable to various Industries and their Initial Compliances

Kiran Fabrics, an MSME in Surat, wants to register as a micro enterprise to access government benefits. Which statement about Udyam registration is most accurate?

Udyam registration is done online on a self-declaration basis using Aadhaar of the proprietor or authorised signatory, and no fee is charged. It covers manufacturing and service enterprises alike, needs no Collector approval, and has no annual physical renewal requirement.

  1. AIt is done online on a self-declaration basis using Aadhaar of the proprietor or authorised person, with no feeCorrect
  2. BIt requires prior approval of the District Collector and a fee based on investment
  3. CIt is available only to manufacturing units and not to service providers
  4. DIt must be renewed every year through a physical application

Explanation

Udyam registration is an online, paperless process based on self-declaration and linked to Aadhaar, with no fee. It covers both manufacturing and service enterprises. It does not need Collector approval and does not require annual renewal by physical application, so the other options misstate the process.

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