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 enrollment centre and submit your application.

1. Visit the official website and log in.
2. Fill out the fields “Aadhar Number” and “Name of the Entrepreneur” with your information.
3. Check all the information, then select “verify and create OTP”.
4. Type the OTP sent to the registered mobile number.
5. You will receive a form after successful verification.
6. Complete all of the required fields and double-check the information to make sure there are no mistakes.
7. Continue scrolling and press the “Submit” button.
8. After that, you will get another OTP on the registered mobile number.
9. 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 Udyogam 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.

Suggested Read – MSMe / Udyam Aadhar renewal / Migration