There are a lot of Udyam Registration benefits when a business is registered as Udyam under the Indian Government. So we will learn about what is Udyam Registration and its benefits in this article, where we will also help you to get registered for Udyam by providing the contact towards the hassle-free udyam registration process.
What is Udyam Registration ?
Udyam Registration is an identification number along with a certificate that is issued to businesses who want to get registered as a “Micro, Small and Medium” (MSME) enterprise. This certificate acts as recognition for MSMEs. MSME has a significant contribution to the socio-economic development of the country and is often referred to as the foundation of our economy. The Indian government has continually exhibited its support for small-scale industries and the unorganized business sector. You can register for Udyam here.
MSME classification based on Turnover and Investment
|CLASSIFICATION||A Micro-Enterprise||A Small Enterprise||A Medium Enterprise|
|Manufacturing Enterprise||Investment less than RS.25 lakhs||Investment less than RS.5 crores||Investment less than RS.10 crores|
|Service Enterprise||Investment less than RS.10 lakhs||Investment less than RS.2 crores||Investment less than RS.5 crores|
Benefits of Udyam Registration
1. Banks & Govt offer collateral-free loans
The Government of India launched the Credit Guarantee Fund Scheme (CGS) to give collateral-free loans to the micro and small sector industries.
The Indian government, in association with the Ministry of MSME (Micro, Small and Medium Enterprises), and Small Industries Development Bank of India (SIDBI), started Credit Guarantee Fund Trust (CGFT) to allocate credit for small and micro-level enterprises.
The finance minister declared a collateral-free automatic loan of up to 3 lakhs crore for small businesses to recover their debts and losses during covid-19.
2. Reservation policies for the manufacturing sector
Development and Regulation Act, 1951 is considered a crucial act in favor of SSI (Small Scale Industries) that provides reservation policies for the exclusive manufacture of items.
3. Direct exemptions on Income tax Laws
As mentioned in the government scheme, the businesses registered under MSME get a direct exemption of income tax for the first year of business, depending on its activities. It offers a major relief for enterprises from detailed bookkeeping habits and complex auditing processes.
4. A subsidy for Bar Code registration
Businesses registered at MSME get subsidies for bar code registration. Barcodes are given in the form of numbers and parallel lines, which are readable through machines. Barcodes are essential to keep track of goods in the entire process of supply and chain management.
5. Support against the delay of payment
The Ministry of Micro, Small, and Medium Enterprises protects the right of interest and A delay in payment of goods from the buyers. An act emphasis on conciliation, arbitration, and settlement of disputes within a minimum time limit.
If the enterprise registered under the MSME act is a supplier of goods, buyers are responsible for clearing dues earlier than the date of the agreement. 15 days are allowed for payment in case the date is not mentioned, but it can not exceed 45 days.
6. Minimum interest rates of banks
An interest rate is lower for the enterprises under MSME. The targets of banks include a 20% hike in credit to micro and small businesses, 10% annual growth in bank accounts of micro, and small enterprises, and 60% growth in lending credits to the small scale industries. Enterprises registered under MSME benefit from the quick granting of loans for their initial run in the market.
7. 15% subsidy of CLCSS
Credit Linked CGSTI Subsidy Scheme (CLCSS) is a scheme of The Ministry of Micro, Small, Medium Enterprises (MSME) for technological up-gradation of the businesses. The government of India launched the scheme in October-2000, and it offers a 15% subsidy which can not go beyond 15 lakhs. The maximum limit of loans for subsidy calculation under the scheme is 100 lakhs.
8. The Business Incubators
The Ministry implements the Support for Entrepreneurial and Managerial Development of SMEs through Incubators. The main purpose of this scheme is to nurture innovative business ideas (new/indigenous technology, processes, products, procedures, etc) that can be commercialized in a year.
9. Eligible for IPS subsidy
Enterprises that have MSME Registration are eligible for Industrial Promotion Subsidy (IPS) as mentioned in the scheme
10. Excise Exemption Scheme
Enterprises that have MSME Registration can enjoy Excise Exemption in the initial year of business, as mention in the Excise Exemption scheme by Government and depending on business activity.
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How can help you?
Udyamregistration.org.in is a private registration consultant. We help small-scale business owners in getting MSME registration / Udyam registration / Udyog Aadhaar registration online, in a quick and easy way. We started with the simple idea that doing business in India should be easy.
To accomplish our mission, we are building the largest business services platform with a range of business services from incorporation to tax filing.
By making it easier to do business, we hope to unleash Entrepreneurship and help small businesses compete effectively. We help you to register your business anywhere in India to manage legal compliance at your fingertips.
During our journey, we have served Start-up’s and MSMEs across the length and breadth of India, starting from Leh to Tamil Nadu and Gujarat to Arunachal Pradesh.
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