Udyam Registration (earlier known as Udyog Aadhar) is a government registration process that certifies MSMEs with a unique identification number and a certificate. The sole motive behind the launch of the Udyam Registration was to grant benefits to all the MSMEs registered under this process. If you own a medium, minor, or micro-enterprise, you should consider registering your MSME via Udyam Registration to reap countless Udyam Registration benefits.
Benefits of Udyog Aadhar/ Udyam Registration
- Anyone may obtain the Udyam Registration for the enterprise.
- Udyam Registration/ Udyog Aadhar Registration will be an enterprise’s permanent Registration and primary identification number. There will be no need for renewal of Registration.
- The process for Udyam Registration is fully digitalized and Paperless. There is no need to upload any document, and it’s based on self-declaration.
- Any activities, including manufacturing, service, or both, may be specified or added in one Registration.
- The registration process is free. No Costs or Fees are to be paid to anyone.
- An e-certificate, namely, the “Udyam Registration Certificate.” shall be issued online on completion of the registration process. This certificate has a dynamic QR Code from which details about the enterprise can be accessed.
- The online system is fully integrated with Income Tax and GSTIN systems, and details on investment and turnover of enterprises are taken automatically from Government databases.
- Along with the Udyam Registration, Enterprises may simultaneously register themselves on GeM (Government eMarket place, a portal for G to B) & SAMADHAAN Portal.
- MSMEs can also be onboard on the TReDS Platform through three available platforms.
Benefits offered to Udyam Registered Entity.
Following are some of the Udyam Registration benefits that MSMEs would be entitled to upon Registration.
- The Udyam Registration may also help MSMEs in availing the benefits of Schemes of the Ministry of MSMEs :
- Credit Guarantee Scheme
- Public Procurement Policy
- Additional edge in Government Tenders
- Udyam Registered MSME becomes eligible for priority sector lending from Bank.
- Bank loans for registered MSMEs are available at an attractive interest rate.
- Udyam Registered MSMEs are qualified to get bank loans without collateral or security.
- Registered MSMEs are eligible for up to a 50% incentive for patent registration of their business idea and process.
- Registered MSMEs can receive up to a 1% discount on the interest they pay at any bank or financial institution.
- Under numerous government programs, registered MSMEs can receive industrial promotion subsidies to spread awareness of their firm worldwide.
- When a registered MSME provides goods or services to another company, and if the payment isn’t made within 45 days, the government gives the MSMEs the authority to levy compound interest on the unpaid balance each month. And the interest that must be paid is three times the rate that the RBI has authorized.
- Particularly in the case of manufacturing facilities, registered MSMEs are also qualified for rebates on Electricity.
- ISO certification costs are expensive. However, the government provides reimbursement benefits to MSMEs seeking ISO 9000/ISO 14001 Certification.
- Only registered MSMEs are eligible for the maximum 15-year extension of the minimum alternate tax (MAT) credit, as opposed to the standard 10-year extension for all other companies.
- Since the Udyam Registration Portal is directly connected to several governments’ e-marketplaces and State Government portals for issuing tenders, registered MSMEs can receive additional assistance and a boost in acquiring government contracts.
- Licensing, approvals, and registrations are accessible.
- Special considerations are given to international trade
- Production/manufacturing sectors have particular reservation policies
- Direct tax laws rule exemption
- Subsidy on NSIC performance fees and credit rating
- Barcode registration subsidy
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