Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in driving the Indian economy. They provide jobs to people and aid in the financial growth of the nation. The government has introduced the Udyam Registration to support MSMEs.
By registering via the Udyam process, MSMEs can gain better recognition and have access to various benefits. In this article, we look at what Udyam Registration is and the key benefits it offers.
What is Udyam Registration?
Udyam Registration is the official online process for Micro, Small, and Medium Enterprises (MSMEs) in India to get certified by the Ministry of MSME. It replaced Udyog Aadhaar in 2020, providing a unique 12-16 digit URN for lifetime validity, free of cost and paperwork.
Let’s know about the Key Benefits of Udyam Registration
There are plenty of benefits that you can get from the Udyam Registration in India. We can not list all the advantages here, but we have elaborated on the Top 10 benefits of Udyam registration in this informative post. Let’s take a look at them.
1) MSMEs Get Benefits From Bank
After the introduction of Udyam registration, all banks and even financial institutions like Muthoot Finance Ltd, Bajaj Finance Limited, HDB Finance Services, etc., are giving more priority to micro, small and medium-sized business enterprises and making some special plans for them. For example, MSMEs can easily get a business loan at a very low interest rate (up to 1.5 per cent lower than interest on regular business loans).
2) Amazing Tax Benefits
Business owners can get the benefit of the excise exemption scheme, depending on their business industry. They can get a direct tax exemption in the beginning years of their business.
3) Benefits of Electricity Bills
Small business owners who are registered on the Udyam portal can get some concessions on their monthly electricity bills and save their resources.
4) Approval of Licenses Has Become Easier
For businesses, it has become very easy to apply for and get approval on a variety of registrations and licenses if they are registered with Udyam.
5) MSMEs Can Apply For Government Tenders Easily
MSMEs that are registered under this registration are permitted to take part in government tenders and can avail an exemption while applying.
6) Interest on Overdraft (OD)
MSMEs are eligible under the credit guarantee trust fund scheme to get an advantage on OD and also an exemption of 1 per cent interest on it. This minimises your loan EMI.
7) State Government Benefits
The state governments like UP, UK, etc., provide subsidies on tax, electricity and entry to the business sectors and also provide rebates in sales tax and buying preference for the goods which are left by them.
8) The Central Government Benefits
The central government of India, which is the BJP ( Bharatiya Janata Party), has introduced various beneficial schemes such as Atma Nirbhar Bharat, credit guarantee scheme, Quality management standard & quality technology tools, women entrepreneurs, zero effect and zero defect and many others in order to benefit small businesses.
9) International Business Opportunity
MSMEs can benefit from the opportunity to take part in international fairs plus trade shows, where you can display your products & services to a broader global audience.
10) Get Benefits From Subsidies
MSMEs can avail a subsidy from the National Small Industries Corporation or NSIC as well as credit ratings, and are eligible for the Industrial Promotion Subsidy (IPS) subsidy.
