Indian small and medium enterprises (MSMEs) are said to be the backbone of the Indian economy. They not only give employment to millions of citizens but also play a very important role in the country’s GDP. However, in securing and expanding the business, most MSME owners unknowingly overlook an important step—Udyam Registration.
This registration not only provides legal identity to your business but also provides access to a whole lot of facilities and safeguards provided by the government. In this article, we will come to know in detail how MSME Udyam Registration protects your business and why you must have it for your business.
What is MSME Udyam Registration?
Udyam Registration or MSME Registration is a Government of India official process. Small and medium enterprises can register their business with the Ministry of MSME under this.
- Totally online.
- You receive a Udyam Registration Number (URN) and a Udyam Certificate upon registration.
- This certificate serves as a legal identity card for your company.
Why do we need Udyam Registration?
With today’s competitive market, starting a business is not sufficient. You need to make sure your business is safe as well. Udyam registration is like a strong shield in this regard.
- It provides your business with a formal identity in the government records.
- You have easy access to bank loans, subsidies, and schemes.
- It keeps you safe legally in the event of business disputes and delayed payments.
Significant security advantages of MSME Udyam Registration
Assurance of timely payment
Most often, small businesses experience delayed payment by large businesses. But if a company does not pay you on time after obtaining Udyam registration, you can complain to the MSME Facilitation Council.
Legally, large businesses need to pay MSMEs within 45 days.
In case of delay, there also needs to be paid interest on the outstanding amount.
Legal protection and rights
Udyam registration gives legal protection to your business. If a company violates the agreement or cheats you, you can safeguard your rights under the MSME Act.
Bank loan security
It is usually costly and tough to obtain a loan without Udyam registration. But registered MSMEs receive collateral-free loans and low-interest loans. This financial protection saves your business during emergencies.
Government scheme benefits
Once you register with MSME Udyam, your business is eligible for numerous government schemes, like:
- Credit guarantee scheme
- Technical upgrade subsidy
- Marketing assistance
- Export promotion schemes
All these facilities give a strong shield to your business.
How does Udyam registration safeguard your business?
Proof of identity
The Udyam certificate is an authentic proof of identity for your business. With this, you can readily establish your status in any government or non-government transaction.
Protection from fraud
If any business commits fraud on MSMEs, it is simple to complain to the government. Udyam registration is strong evidence for you.
Emergency help
During crisis situations such as COVID-19, the government gave special relief packages and simple loans to registered MSMEs. In other words, the government is with you during hard times.
Business credibility
Clients and customers also believe in registered companies. It raises both the reputation and safety of your company.
How to do MSME Udyam Registration? (Step-by-Step)
The process of Udyam registration is quite simple.
1. Go to the official website of Udyam Registration.
2. Fill out the Udyam registration form.
3. Provide details related to the business, such as—
- Business name
- PAN card number
- Bank account number
- Number of employees
- Information on investment and turnover
4. Submit the form.
5. Upon successful registration, you will receive the Udyam Registration Number (URN) and certificate through email.
Disadvantages of not obtaining Udyam registration
- If you fail to obtain the MSME Udyam registration, then:
- You will miss out on the advantage of government schemes and subsidies.
- There will be no legal assurance of prompt payment.
- It will be cumbersome and costly to obtain a bank loan.
- Large clients will be hesitant to work with you because you will not possess an official identity.
You Can Apply for Print Udyam Certificate Through Udyam Portal
Conclusion
MSME Udyam registration is not a mere formality; it is the armor of your business. Not only does it bestow legal protection on your business, but it also provides financial convenience and growth opportunities.
To secure your business and make it reliable and powerful, get Udyam Registration today.
