How Can Udyam Registration
Benefit Small-Scale Businesses?
Introduction
The growth of the Indian
economy depends highly on the micro, small, and medium-sized businesses in
India. According to the All-India Management Association (AIMA), MSMEs’
contribution to India’s GDP will increase to 40% by FY-2025. As a result of the
value of these micro, small, and medium-sized businesses, the Indian government
created the Udyam Registration Facility to support the expansion of MSMEs in
India.
What is Udyam Registration?
Udyam Registration is an
identification system designed specifically for MSMEs. This facility was established by the Ministry
of Micro, Small, and Medium Enterprises in 2015. Similar to the Adhar card, It
is a certificate with a 12-digit registration number. Small enterprises will be
able to maximize the benefits of being small and medium-sized firms in India by
using an Udyam Registration Card. The Udyog Aadhar Registration has been moved
to the Udyam Registration in 2022.
The entrepreneur, director, or
proprietor of the organization will provide his/her 12-digit Aadhar Number.
Udyam Registration is must whether the business or entity is a sole
proprietorship, an LLP, a private limited company, or anything else. It must be
in possession of the recognition certificate issued through MSME registration.
What is the Udyam Aadhar
Memorandum?
The Udyam Aadhaar Memorandum
is the registration document that validates the presence of the Udyam Aadhar
Certificate owner. It contains all the relevant data for the owner of the
specific Udyam Aadhar Certificate, including the Aadhar card information and
bank account information of the company owner. The Udyam Aadhar Memorandum
registration does not require any fees from the enterprises. The Udyam Aadhar
Memorandum is referred to as a self-declaration form. As a result, supporting
the form with extra documentation is not necessary. The federal or state
authorities may, however, demand some documents as proof in extreme
circumstances.
What Are The Benefits Of Udyam
Registration?
There are numerous advantages
of obtaining an Udyam Registration for your company. A list of advantages of
the numerous programs provided by the Ministry of MSME for the Protection,
Growth, and Development of Small Enterprises is provided below. The benefits of
Udyam Registration are listed below:
·
Protection against payment delays
·
Quick resolution of conflicts
·
Collateral Free bank loans
·
Exclusive consideration for attending a global
trade event
·
Surrender of Stamp duty and Registration fees
·
Several Exemptions under Direct Tax Laws
·
Registration with a bar code subsidy
·
NSIC Performance and Credit Rating Subsidy
·
Counter Guarantee from the GoI through CGST
·
Decreased interest rates from banks
·
15% of the CLCSS scheme’s subsidy is for
upgrading technology
·
Exemptions when applying for government
contracts
·
Reduction in electricity bills
·
Reimbursement of fees paid for ISO
certification
·
Interest on OD is exempted by 1%
What is the Process for free
Udyam Registration?
It is important to keep in
mind while registering your business that you must have your Aadhar
information. If you don’t have your Aadhar then visit an Aadhar enrolment
centre and submit your application.
·
Visit the official website and log in.
·
Fill out the fields “Aadhar Number” and “Name
of the Entrepreneur” with your information.
·
Check all the information, then select “verify
and create OTP”.
·
Type the OTP sent to the registered mobile
number.
·
You will receive a form after successful
verification.
·
Complete all of the required fields and
double-check the information to make sure there are no mistakes.
·
Continue scrolling and press the “Submit”
button.
·
After that, you will get another OTP on the
registered mobile number.
·
To finish the application, enter the
information carefully and press the final “Submit” button.
How to Print or Download an
Online MSME Registration Certificate or Udyog Aadhaar?
The steps below must be
followed in order to print or download the Udyam Aadhar Certificate or the MSME
Certificate:
·
Businesses must first submit their 12-digit
Udyam Aadhar number
·
The businesses are required to add the
appropriate mobile number or email address and validate it using the
verification code to finish the verification procedure (One Time Password).
·
The businesses are required to verify all of
their data in the Udyam Aadhar Certificate data when the verification procedure
is complete.
·
The organizations can print or download the
Udyam Aadhar Certificate data on the relevant page after verifying that all the
data is accurate.
Conclusion
The Udyog Aadhar Certificate
was started to promote the expansion of all small-scale industries (SSIs) or
micro, small, and medium-sized businesses (MSMEs). All small businesses qualify
for benefits after completing the necessary registration, including subsidies,
tax exemptions, loans at lower interest rates, the whole or partial discharge
of various utility bills, and many more advantageous programs.
