Indian small and medium-sized businesses (MSMEs) are the backbone of the Indian economy. Not only do they give employment to crores of people, but also generate innovation and vision for independent India. But so far, the most bulkier issue of these ventures was that they were out of reach of government schemes and incentives. This has been removed by "Udyam Registration," which is now a one-stop solution for MSMEs.
Let us know what Udyam Registration is, why it is needed, and how much it supports MSMEs to develop.
What is Udyam Registration?
Udyam Registration is an online registration process initiated by the Government of India, through which micro, small, and medium enterprises (MSMEs) are made easy to register with the government.
It is executed under the Micro, Small, and Medium Enterprises Development Act (MSMED Act, 2006).
Through this process, a company is assigned a Udyam Registration Number (URN) and a Udyam Certificate, confirming your company as a registered MSME company.
Why should MSMEs register under Udyam?
1. Easy Access to Government Schemes:
The government announces different schemes and subsidies for MSMEs from time to time. Udyam registration enables easy access to these schemes much more.
2. Interest Subsidies and Easy Loans:
Subvention of interest on bank loans, collateral-free (guarantee-free) loans, and priority loans are made available to registered MSMEs.
3. Participation in Government Tenders:
Only registered MSMEs can participate in a majority of government e-tenders and projects.
4. Subsidies and Incentives:
Subsidy on electricity bills, industrial estate rent, patent registration, and technology upgradation after Udyam registration is given.
5. Improved Brand Credibility:
The Udyam Certificate provides a legal identity to your company, helping build investor and customer confidence.
Udyam Registration Benefits for MSMEs
1. Business Identity:
The government offers a unique ID to every MSME, which is their identity. The certificate is essentially your company's business identity card.
2. Business Growth Opportunities:
Chances of trading on the Government e-Marketplace (GeM), participating in trade fairs, and availing of MSME schemes grow.
3. Easy Banking Process:
Banks and NBFCs prefer registered MSMEs and find it easy to grant loans, overdraft, or credit facility.
4. Tax Relief:
There are certain states which grant tax relief and other exemptions to Udyam Registration business entities.
5. Financial Security:
In the event of any grievance or delay in payment, MSMEs can approach the MSME Facilitation Centre or the related authority and lodge a complaint, safeguarding their rights.
MSME can also download Udyam certificate download PDF
Simple Step-by-Step Process for Udyam Registration
Udyam Registration is an online process.
You can complete it in a matter of minutes—
1. Go to the official site – Udyam registration portal
2. Provide your Aadhaar number and PAN card.
3. Provide business name, category (micro, small, or medium) and location.
4. Provide bank account details and number of employees.
5. Click "Final Submit"—you are registered.
6. Your Udyam Registration Number (URN) and Udyam Certificate will be emailed to you.
The Role of Udyam Registration in the Development of MSMEs
Udyam Registration is not just a certificate, but a document that opens the door of upscaling for MSMEs.
It brings small industries into the fold of the government officially, which:
- Facilitates easy access to financial institutions.
- Increased transparency is facilitated through online documentation.
- MSMEs are brought into policymaking through the government.
- It also provides faith to foreign trade and exports.
Most of the MSMEs nowadays who have registered Udyam have gone on to take their business pan-India and pan-world.
Also read: How Small Errors in Udyam Registration Can Hurt Your MSME Journey
"One registration, many benefits" – the power of Udyam
Udyam registration is not a paper; it's a process by which MSMEs are brought to the formal sector from the unorganized sector.
It provides every entrepreneur with a gateway to business growth, government support, and capital.
Simplified—
"One Udyam registration = the beginning of MSME success."
Udyam registration has actually become a one-stop shop for India's MSME market.
Not only does it grant your business the recognition you're looking for, but it also creates new opportunities for expansion.
Regardless of whether you possess a small-scale startup or expanding business, availing Udyam registration is the first and most significant step towards business expansion.
Even if you wish your business to receive the advantages of government schemes, subsidies, loans, and brand value. Then register for Udyam today and elevate your business to new heights.
