WHAT IS UDYAM REGISTRATION & ITS BENEFITS
As per the notification issued by the ministry of micro small-medium enterprises on 1st June 2020, MSMEs will now be known as Udyam. And the registration process for an organization as an Udyam will be called Udyam Enrollment Registration. Government Udyam Registration portal is a self-declaration basis portal without adding or uploading any document/ certificate/ paper.
Any person who intends to establish Micro, Small, or Medium businesses will have to file for Udyam registration in the online Udyam Registration Portals. The business will subsequently be issued an Udyam Registration Number and an E-certificate namely, ‘Udyam Registration Certificate’. As per the notification of the ministry of the MSME, all the existing Indian companies and enterprises shall file and register as Udyam on or before 31st Mar 2021. The old Udyog Aadhaar Memorandum can be upgraded to Udyam registration by verifying/seeding the PAN.
The new notification issued by the Indian Government says that from July 01, 2020, an MSME (Micro Small and Medium Enterprises) will be known as Udyam, and the enrolment or the registration will be known as Udyam Registration.
With a new Udyam registration certificate, the government of India validates the existence of the business. And all the business associated with the Udyam can avail numerous benefits derived from the various relief schemes offered by the Ministry of MSME for the protection and growth of small businesses in India.
Benefits of Udyam Registration
Udyam registration plays a vital role especially for small and medium sizes of business throughout India. It is found that the overall economic growth of a nation largely depends on its small and medium size businesses.
Udyam registration online offers entrepreneurs to avail incredible advantages under the current MSME Scheme of the Indian Government. One of the key benefits of registration is that you can easily get your business included in the state as well as central government business schemes. If you want to grab benefits of these government-run schemes, you need to go through the essential registration process
Following are some of the Benefits of Udyam Registration:
- Protection: The business owner will get protection against delay in Payment.
- Collateral free loans: You can also avail collateral free loans from the bank
- Octroi benefits: The business owner can avail Octroi benefits.
- Claim charges: Claim stamp duty and registration charges.
- Rate of interest: Rates of interest from the banks can be reduced
- Concession in electricity: The business owner who opts for Udyog Aadhar can get a concession on Electricity bills.
- Interest on OD: Exemption of 1 percent interest rate on Overdraft
- Subsidies: Can avail subsidy from NSIC and credit ratings & Eligible for IPS subsidy
- Reimbursement: Reimbursement on the payment made for obtaining the ISO certificate
- Reservation advantages: Reservation of products for exclusive manufacturing by MSME and SSI.
- Excise exemption: Avail Excise Exemption Scheme
- Government tenders: Avail exemption while applying for government tenders.
- Direct tax: Exemption under direct tax laws.
- Bank mortgage: Enjoy easy bank mortgages
- International affairs: Can become a part of International business fairs
- Benefits for States and Union territories: States and Union territories have their own package of facilities and incentives for small scale.