India’s medium, small, and micro enterprises (MSMEs) are the backbone of the Indian economy. These small and medium enterprises not only employ crores of people, but they also contribute significantly to the development of the country. But up until now, most of the MSMEs have not yet completed their Udyam Registration, and so they are missing out on various government schemes and benefits.
If you, too, are an MSME owner, then this article is for you. Let’s get to know what Udyam Registration is, its advantages, and why it is so crucial.
What is Udyam Registration?
Udyam Registration is the Government of India’s online scheme to provide an identity to medium and small businesses. MSME registration was previously done under the Udyog Aadhaar Memorandum (UAM), while the same procedure is being done only on the Udyam Registration Portal.
It’s an easy, web-based process through which you can register your MSME in the government database just by entering your Aadhaar number and your business details. Once registered, the government gives you a Udyam Registration Certificate, a legal document of your business.
Why do you need Udyam Registration?
The Government of India has several schemes for the development of MSMEs. But these schemes are available only to those entrepreneurs registered on the Udyam Portal. Unregistered units cannot take advantage of these schemes.
Now, let us learn the benefits of MSME through Udyam registration.
1. Direct Benefits of Government Schemes
As soon as you get registered under Udyam, your company becomes registered with the MSME Department indirectly. This saves you lots of trouble in availing schemes provided by the government, including the Prime Minister’s Employment Generation Programme (PMEGP), Credit Guarantee Fund Scheme (CGTMSE), and the Mudra Loan Scheme.
These schemes provide you with low-interest loans, subsidies, and other benefits in the financial context that foster growth for your company.
2. Concessional Interest Rate on Loans
Udyam-registered MSME businesses can avail loans from banks and financial institutions at a concessional rate of interest. Apart from that, the said businesses are usually dealt with by the majority of banks as a priority sector, and therefore, the loans become easily and readily available.
3. Government Tenders and GeM Portal Facilities
If your MSME wants to do government contracts or supply goods, Udyam registration is necessary. Registered MSMEs can directly supply their goods and services to government departments by registering on the Government e-Marketplace (GeM) portal.
Also, only Udyam-registered MSMEs can apply for most government tenders. This is a great opportunity for your business.
4. Tax and Other Benefits
MSMEs registered under Udyam have several exemptions, such as a refund of income tax, exemption in case of duty stamps, and reduced registration fees. They are also given the protection of the law in case of default payments.
5. Ease of Business Growth
Getting a Udyam Certificate adds credibility to your business. Your brand receives increased faith from investors and buyers. You are prioritized over others for everything, including bank loans and supply orders.
This is of great use in ensuring market stability and MSME development.
6. Subsidies and Incentives
State and union governments provide a range of subsidies, tax benefits, and incentive programs to MSMEs, such as:
- Technology upgradation subsidy
- Subsidy for financing ISO certification
- Concession on electricity charges
- Export promotion schemes and export incentives
These concessions are provided only to Udyam-registered MSMEs.
7. Simple Loan Sanction and Credit Facility
The Udyam Certificate can be used as a legal identity by banks and financial institutions. This speeds up loan sanctioning and simplifies documentation. MSMEs can also avail collateral-free loans.
8. Payment Security and Legal Protection
Under the MSME Act, if your customer or a large company fails to pay for your service or product, you are entitled to go to the MSME Facilitation Council to complain.
This gives you legal protection and a high likelihood of receiving your money on time.
9. International Market Access
Udyam Registration enables MSMEs to utilize government-sponsored Export Promotion Schemes and International Trade Fairs. This makes your products more well-known in foreign markets and presents new export possibilities.
10. Digital Identity and Proof of Business Data
Udyam Certificate is your online identity. Not only does this confirm your authenticity, but it also serves as a document key to any future government support or certification.
How to Register on the Udyam Registration Portal?
Udyam registration is quite easy:
- Go to the official portal—the Udyam registration portal
- Provide your Aadhaar number and business information.
- Validate via OTP and proceed with your application.
- You get a Udyam Registration Certificate at your email address within minutes.
100% online and easy
You can also download your MSME certificate download option
Conclusion
Indian MSMEs’ Udyam Registration isn’t a process but an empowerment tool. It gives the government recognition, identification, and transparency of your company.
It offers unlimited scope for financing and growth.
If you haven’t registered your business yet, wait no longer. Register your MSME today by logging on to the Udyam Registration Portal and taking advantage of all the schemes that the government has planned for you.
Take a small step today, and you’ll realize how much it adds to your business.
