On July 1, 2020, a new registration procedure for MSME (micro, small and medium enterprises) called Udyam was introduced by the Micro, Small, and Medium Enterprises Ministry. From that day, the Ministry amended its description of MSMEs as well.
Udyam is a company involved in this process, and Udyam Registration is the name of its registration procedure. After registration, you would be issued a permanent registration number.
Registration using Udyog Aadhaar vs. Udyam
A government identification that comes with an acknowledgment certificate and a personal identification number is known as an “Udyam Registration” or “MSME Registration.” This registration serves to certify micro, small, and medium-sized businesses. Since July 2020, the udyam aadhar registration has replaced the Udyog Aadhaar registration. The method is more easily available than it was when Udyog Aadhaar registration first began due to Udyam registration.
You require udyam registration online for the Credit Guarantee Scheme, the public procurement policy, an advantage in government tenders, security against payments delay, and other advantages offered by the Ministry of MSME.
Benefits of Udyam Registration
The Udyam Registration procedure is straightforward, and completing the necessary documentation is not necessary. The following advantages are available to your business if it has Udyam Registration:
- Special Preference in Using Government Tenders for Purchases
- For Udyam-registered businesses, a variety of tax breaks are available
- Registered Udyam receives tax, tariff, and capital subsidies
- It offers a defense against Buyers’ payment delays
- Government fees for submitting trademarks and patents are specially discounted by 50%
- Disputes are resolved quickly
- Tax refunds
- Reduction in electricity costs
- Businesses that are registered with Udyam are given higher consideration for government licenses and certifications
- The Udyam registration will assist in obtaining bank loans devoid of collateral or mortgage. Exemption from Bank Overdraft (OD) Interest Rate of 1%
Who may apply to join Udyam?
Anyone can use udyam aadhar registration if they want to start a medium, small, or micro business.
When should I apply for MSME Udyam Registration?
The Entrepreneur has the full decision to get Udyam Registration; it is not required. To take advantage of the many benefits provided by the government, it is advised that the majority of enterprises seek MSME registration as soon as possible after registration.
Udyam Online Registration Documents Required
No further papers need to be uploaded as the Online Udyam Registration application procedure is based only on self-declaration. All that is required from the application throughout the registration procedure is their PAN, 12-digit Aadhaar number, and business bank account information.