Accounting for the undebatable fact that the overall economic growth of an economy largely depends on the small and medium-sized businesses, the government had previously launched Udyog Aaaadhaar registration. This online registration allowed the budding entrepreneurs to avail of a wide array of advantages falling under the MSME schemes of the Indian government. This registration provided businesses with a recognition certificate and a unique number to certify the micro, small and medium enterprises operating in India.
The Government of India has now rebranded the Udyog Aaaadhaar to Udyam with some categorical amendments. It stands as a news portal on how to enable the registration process of MSME businesses in India. Any enterprise can get register merely based on Aaadhaar number of the registering party; other details are to be self-declared. The Ministry of Micro, Small and Medium Enterprises announced this new process in June 2020. For eligibility, the enterprises that are engaged in manufacturing, production, processing of goods, or providing or render services to get themselves registered for Udyam.
Benefits of Udyam Registration
Udyam registration serves as a backbone of benefits for medium and small-sized businesses across India. Considering the contribution made by small and medium enterprises in the country’s economic growth, the government has taken into consideration multiple benefits for this segment.
The foremost benefit that it draws to your business is that you can effortlessly get it registered for inclusion in the State and Central Government business schemes. It would enable you to avail of the benefits of government-run projects.
Other benefits of Udyam are:
- Udyam provides the business owner with protection against delay in payment.
- The business owner can avail of a collateral-free loan from the bank.
- The business owner can avail of octroi benefits.
- The business owner can claim stamp duty and registration charges.
- Reduction of the rate of interest from the banks for Udyog registered companies.
- The business owner can enjoy concessions in electricity bills.
- The business will get a reduction of 1% interest rate on overdraft.
- The business can avail subsidies from NSIC and credit ratings besides the IPS subsidy.
- The business owner can avail reimbursement on the payment made for obtaining an ISO certificate
- The business owner can make a reservation of products for exclusive manufacturing by the ministry of small and medium enterprises.
- The business can enjoy exemption schemes.
- The business owner can avail of exemptions while applying for government tenders.
- The business can avail exemption from direct tax laws.
- Easier Bank mortgages.
- The business owners can become a part of international business fairs.
- The business owner can avail benefits from states and union territories along with incentives for small-scale businesses.
Udyog Aaaadhaar is now Udyam with some amendments. The new features in Udyam registration are:
- Linked with Income Tax Return.
- Linked with Goods and Service Tax Portal.
- Udyamrequires annual updates making sure of eligibility criteria.
- According to the eligibility, you can shift the business in another class.
- There is a change in criteria of eligibility in terms of investment with the additional turnover requirements.
Insights: Udyam registration
Udyam registration is a fully online and paperless process based on self-declaration. No document of proof is required to register for udyam.
Some key points to consider while filing for udyam registration:
- The form of registration should be as given on the udyam registration portal.
- Udyam registration is entirely free and does not involve a fee.
- Aaadhaar number is a pre-requisite for Udyam registration.
- Each Enterprise should file only one registration.
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