Top 10 Benefits of UDYAM Registration Certificate
On 1st July 2020, Udyam registration was introduced by the Indian government for classifications of Business enterprises as Micro, Small and Medium size enterprises and their registration in Udyam website. The prime reason behind introducing it was to help MSMEs in the Coronavirus pandemic.
What is Udyam registration?
It is an identification number issued to business owners including startups who want to register their business entity as a micro, small or medium enterprises or MSME. This registration number acts as the identity for these Business owners. Businesses are divided into these categories based on the investment & turnover of the company.
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 have elaborated 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 size business enterprises and making some special plans for them. For example- MSMEs can easily get a business loan at a very lower interest rate ( Upto 1.5 percent 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 direct tax exemption in the beginning years of their business.
3) Benefits on Electricity Bills
Small business owners who are registered on the Udyam portal can get some concessions on their monthly electricity bills and can 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 exemption while applying.
6) Interest on Overdraft (OD)
MSMEs are eligible under the credit guarantee trust fund scheme to get advantage on OD and also exemption of 1 percent interest on it. This minimizes 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 BJP ( Bharatiya Janata Party) has introduced various beneficial schemes such as Atma Nirbhar Bharat, credit guarantee scheme, Quality management standard & quality technology tools, women entrepreneur, 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 subsidy from National Small Industries Corporation or NSIC as well as credit ratings and are eligible for Industrial Promotion Subsidy (IPS) subsidy.
Key Benefits of Udyam Registration Infographic Representation
What is the Process of Udyam Registration?
The process is very simple. Keep in mind that MSME registration is free. We have mentioned a simple guide for Udyam registration under MSME for getting registration. Here is the process:
Step 1: Visit The Official Website / Portal
First, you have to visit the official Udyam registration website. Now, click on the "For new entrepreneurs who are not registered yet as MSME" button.
Step 2: Enter All Your Personal Details
After step 1,you have to enter personal information details like your name, aadhaar number, mobile number, email ID, etc. Now click on "validate & generate OTP". You will get an OTP on your phone and enter it.
Step 3: PAN (Permanent Account Number) Verification
After that, you have to choose the type of business and enter your PAN number and click on validate. Remember, this process takes a little bit of time.
Step 4: Fill Business Postal Information
In this step, you have to provide the postal address of your enterprise or company. Ensure all information given by you is correct.
Step 5: Fill the Bank Details
Now, you need to enter your company's bank account number along with bank address and IFSC code.
Step 6: Company Details
Now, mention the mainline activity of your business. Whether it is a service or manufacturing business unit.
Step 7: Select the District Industry Center and Accept the Declaration
This is the final step. In this process, you have to select the district industry center from the list provided there. Now, you need to accept the declaration and click on the submit button and get the OTP in your phone. Now, enter this OTP and click on the final submit button. Now, you will receive a registration number on your provided email id once all the details are verified by the government.
What documents are required for Udyam registration?
Udyam aadhar registration in Indiais completely based on self declaration and paperless process. Remember, no documents or proof is required for registration except your aadhaar card number.
Some of your documents will be taken automatically from the database of the government such as PAN and GST details. Keep in mind having PAN, TAN and GST numbers are mandatory from 1st of April 2021.
Every type of business is eligible to get the Udyam registration certificate or license including public limited and limited company, partnership firm, Limited liability partnership (LLP), one person company (OPC), hindu undivided family (HUF) and sole proprietorship.
How ExpertBells Can Help You?
If you are experiencing any difficulty while registration, the professionals at ExpertBells can undertake this for you at very affordable price. If you are an entrepreneur and not registered yet as MSME, then you can enroll for MSME registration and get your Udyam registration from ExpertBells.
They expertise services securely help small business owners like you in getting a certificate or license of Udyam Registration online in quick time. Apart from Udyam registration, the GST registration services at ExpertBells will help you to get your small business GST registered and get your GSTIN or GST identification number.
The government of India is motivating and encouraging Indians to invest in MSME enterprises. In COVID lockdown, the government has announced that they will distribute 3 lakh crore rupees as loan for the development and growth of MSMEs.
Many types of loans have already been given to small business owners and many will get in the coming few months. So, if you want to set up a new business, then you can benefit from it. For this, you only need to have a good and profitable business plan or model. The government of India will help you for your business setup and running.
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