Indian small and medium enterprises (MSMEs) are referred to as the backbone of India’s economy. They not only provide job opportunities but also help in innovation and expansion. Whether you own a startup or a small- to medium-sized enterprise (SME), doing Udyam Registration can be highly rewarding for you.
Let’s learn why Udyam registration is required for startups and SMEs.
What is Udyam Registration?
Udyam Registration is an official Government of India process where small and medium industries are issued a unique identification number (Udyam Registration Number) and a certificate.
The registration is entirely online and easy, involving only an Aadhaar card and basic business details.
Increasing government recognition and trust
- Credibility is extremely important for any business.
- Udyam registration gives your startup or SME official recognition by the government.
- This makes customers, investors, and banks look upon your business as trusted.
You can freely utilize the facilities of government schemes and subsidies.
Easy access to loans and credit
Startups and small businesses usually have the greatest problem with finance.
Udyam Registration enables you to take loans without a guarantee (collateral-free loans).
Interest rates are also reduced.
Banks and NBFCs are prepared to provide you with MSME loans the moment they check your registered status.
Availment of government schemes and subsidies
The Government of India operates numerous schemes to support MSMEs.
- Subsidy on the electricity bill
- Exemption on patent and ISO certification fees
- Technology upgradation scheme assistance
- Export promotion schemes
These facilities are offered only to registered MSMEs.
Tender access and GeM portal access
- If you wish to obtain government contracts or supply contracts, then Udyam Registration is required.
- Registered MSMEs alone can register on GeM (Government e-Marketplace).
- This offers your enterprise the scope to expand on a vast scale and collaborate with government departments.
Tax and business relief
MSMEs that obtain Udyam Registration also avail themselves of numerous tax reliefs.
- Tax exemption and concession
- Tax relief, even if there is a loss in business
- Early tax refund
With these facilities, startups can become financially strong.
Competitive advantage
- These days, the market is highly competitive.
- When you possess a Udyam Certificate, your brand value increases.
- Registered MSMEs are preferred by customers and companies.
- This provides you with a competitive advantage over others.
Extra benefits for startups
- Startups have various challenges at the initial stage, such as funding, marketing, and gaining trust.
- A Udyam Certificate helps you become a registered MSME.
- With Udyam Registration, they can simply gain the trust of investors and customers.
- The advantages of most Startup India schemes are only available if you have Udyam registration.
- It provides your startup with legal identity and government cover.
Protection in case of disputes and payments
- MSMEs usually receive payments from large firms late.
- With Udyam Registration, you are able to complain to the MSME Coordination Council (MSME Samadhaan Portal).
- This can get you your payment within 45 days.
- This facility is only for registered MSMEs.
Easy process
- The good news is that Udyam Registration is not complex or costly.
- The entire process is online.
- The job is completed with only an Aadhaar number and a PAN card.
You Can Apply for Udyam Annexure Download Through Udyam Portal
Conclusion
Udyam Registration for startups and SMEs is not only a certificate but also a new-age business identity card. It not only gives government recognition but also doors to financing, subsidies, tax advantages, and larger opportunities.
If you wish your business to expand quickly, win over the trust of investors, and make full use of government schemes, then MSME Udyam Registration is extremely crucial for you.
