The Union Ministry of Micro, Small and Medium Enterprises (MSME) announced a new way of identifying, classifying and registering MSMEs. The name given to it was ‘Udyam Registration’. The word was out on 26 June 2020 and was finally implemented on 1 July 2020. A new portal was also declared for registering the company under MSME.
Udyam Registration is a type of government registration which is provided along with a recognition certificate and a unique number for certifying MSMEs and hence an registered enterprise will be called Udyam. Udyam Registration can be filed online in the Udyam Registration Portal. After the registration has been done, a permanent identity number and e-certificate will be assigned, known as ‘Udyam Registration Number’ and ‘Udyam Registration Certificate’ respectively.
Benefits of Udyam Registration
Everything has its own pros and cons and so does Udyam Registration. The Ministry of MSME provides numerous benefits for the growth of MSMEs and businesses with Udyam Registrations can also use these to their advantage. Udyam registration was an initiative to help MSMEs grow and to ease their troubles.
Some of the Udyam registration benefits are mentioned below –
Bank Loans –
Since the interest rate is very low, the bank loans are cheaper and easy to avail.
Tax Rebates –
Udyam also gives the benefit of various tax rebates.
Access to credits becomes easier with Udyam.
Businesses with Udyam registration do not face problem while getting licenses, certifications and approvals.
It becomes easy to get a patent after Udyam.
Ease of Setup –
Setting up the business is a tedious task. But with Udyam, it becomes a tad bit easier because of various concessions offered.
Facilities like barcode become easy to access through Udyam registration.
The MSME enterprise becomes eligible for CLCSS (Credit Linked Capital Subsidy Scheme).
Concessions are also offered in electricity bills, thus helping in financial saving.
Udyam makes the business eligible for Industrial Promotion Subsidy.
Reservation Policies –
There are certain reservation policies that rove to be helpful for the manufacturing/production sector.
Direct Tax –
Businesses are also exempted from certain direct tax laws.
Businesses with Udyam get protection in case of delay in payment.
Government Tenders –
Businesses also get exempted to an extent when it comes to government tenders.
International Trade Fairs –
Because of Udyam, entities tend to get special consideration in International Trade Fairs.
ISO Certification –
Businesses can also enjoy reimbursement of ISO Certification.
It is now evident that businesses with Udyam Registration Certificate can avail numerous benefits that can help them personally as well as professionally. To know about Udyam Registration in detail, visit our website and in case of any queries, reach out to us and our team of experts will be there for your assistance.
This website is a property of a private consultancy firm. We provide consultancy services w.r.t. MSME / Udyog Aadhaar Registration. Please note we are private consultants. We do not represent any government office or any government department.