Udyam Registration Certificate & Its Benefits
Udyam Registration, involves the government sign-off & the provision of an Udyam Recognition Certificate with a Unique Number. Read to know about the Key benefits!
With Udyam Registration, business owners can simplify the procedural format for registering their Micro Small Medium Enterprises (MSME). Before its introduction, the procedures involved were time-consuming and complicated, requiring a lot of paperwork.
Udyam Registration has transformed and become easier for micro, small, and medium enterprises. This article highlights the benefits of Udyam Registration.
What Is Udyam Registration?The Ministry of MSMEs launched the Udyam Registration Portal to digitize India and streamline processes. It is an improved, tech-first system to assist small and medium businesses to grow and provide all the necessary support.
Udyam Registration, also known as MSME Registration, involves the government sign-off and the provision of an Udyam Recognition Certificate and a Unique Number. This certification is essential if you seek legal and operational certification for small or medium businesses. The Ministry of MSME, Government of India, conducts Udyam registration for micro and small businesses.
Features of Udyam Registration
MSMEs can now register online through Udyam, a simplified and streamlined system that offers several benefits. Some of the key features of Udyam registration are:
- No physical paperwork: Enjoy the ease of Udyam registration online and save your valuable time. Yes! It is done entirely in digital mode, reducing hassles for MSMEs.
- One form for all: Udyam registration requires only one form to fill in, which covers all the relevant information, making it easier and faster for MSMEs to register.
- Zero registration fee: Udyam registration is free for all MSMEs, regardless of their size or sector, encouraging more entrepreneurs to start and grow their businesses.
- Investment-based classification: MSMEs are classified based on their investment in plant and machinery or equipment instead of only plant and machinery. This gives a more accurate and comprehensive picture of the enterprises.
- Dynamic and updated database: Udyam registration creates a dynamic and updated database of MSMEs, which can be used by policymakers, researchers, and businesses for various purposes.
Guidelines for Udyam Registration Application
- Utilize the exclusively online process available on the Udyam Registration Portal for your application.
- Upon successful registration, you will be assigned a permanent identification number and an e-certificate known as the 'Udyam Registration Number' and 'Udyam Registration Certificate,' respectively.
- Ensure that you meet the specified criteria for classification as a medium, small, or micro-enterprise to qualify for MSME registration.
Benefits Of Udyam Registration
Here are some of the Udyam certificate benefits:
1. Borrowers get collateral-free loans from banks
2. Licensing, approvals, and registrations are accessible
3. Special considerations are given to international trade
4. The government offers concessions on various bills, including electricity bills
5. Organizations registered with Udyam get eligible for Credit Linked Capital Subsidy Scheme
6. Reimbursement of ISO certification fees
7. Protection against late payments or supplied services
8. Bank loans with subsidies and lower interest rates
9. Production/manufacturing sectors have special reservation policies
10. Direct tax laws rule exemption
11. Subsidy on NSIC performance fees and credit rating
12. Barcode registration subsidy
13. Patent registration subsidy
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Eligibility For Registration
Per the latest guidelines, Udyam certificate benefits are only available to businesses that meet specific criteria. Registration for Udyam depends on three key aspects: type of enterprise, annual turnover, and investment of the MSME.
1. An MSME must fall into one of three categories: micro, small, or medium
2. MSMEs receive different benefits based on their annual turnover. Registration and its benefits are available to micro-enterprises with turnovers up to 5 crores. Small firms with a turnover of up to Rs 75 crores and medium firms with a turnover of up to Rs 250 crores are also eligible.
3. Udyam registration benefits micro-businesses with investments below one crore. The investment limit for small businesses should not exceed Rs 10 crores, and for medium businesses, it should be below Rs 50 crores.
Documents Required For Udyam Registration
• PAN of the enterprise
• GST Certificate
• Copy of the entrepreneur's Aadhaar
• Social Category of entrepreneur
• Phone number
• E-mail address
• Business Commencement Date
• A/C No. and IFSC Code (or a copy of the passbook)
• Number of employees (with male and female divisions)
• The nature of the business
• The latest audited financial statements
Features of Udyam Registration Certificate
- A permanent registration number is provided to MSMEs on the Udyam registration certificate.
- The Udyam registration certificate is an e-certificate issued on the email of the entrepreneur once the registration is done online.
- The Udyam certificate is valid till the existence of the enterprise; thus, it is not required to be renewed.
- An enterprise cannot apply for more than one MSME registration. Thus, all activities of the enterprise are covered in the Udyam registration certificate.
- A Udyam registration certificate is necessary to obtain loans from banks and benefits provided under various schemes to MSMEs.
- The Udyam registration certifies that an enterprise is covered under the MSME category.
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Are you ready to start a business and get an Udyam Registration? Fulfill your capital needs with IIFL Finance business loans.
IIFL offers a wide range of business loans to meet the needs of every borrower. Getting a loan with us is hassle-free due to our commitment to speed and convenience. With these loans, you can expand your business, pay your employees, manage operational costs, and meet additional day-to-day expenses. You can visit our website or branch for more information about business loans.
Frequently Asked Questions
Q1. Is Udyam registration mandatory?
Ans. The Udyam registration process is compulsory for any company registered with another ministry agency under the Department of MSME.
Q2. Is Udyam registration free of cost?
Ans. Yes, Udyam registration is free and does not include any special registration fee.
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