Learn how to obtain your Udyam registration online and unlock the full potential of your business with this comprehensive guide.
MSMEs or Micro, Small and Medium Enterprises play an important role in the economic growth of developing countries. Over the past five decades, MSMEs have helped India reduce economic disparities, rural-urban divides and regional imbalances. India’s MSME sector produces more than 6,000 different products, accounting for 45% of total industrial employment, 50% of total exports and 95% of domestic industrial units.
To further enhance the growth and development of MSMEs, Udyam Registration the Ministry of Micro, Small and Medium Enterprises offers a range of rewards-based benefits, schemes, programs and contests that provide accessibility contact at a global level for registered MSMEs.
Before discussing these offers further, let us first look in detail what MSME registration really is and how you can register your business using the Udyam portal.
MSME Registration and Udyam Registration Portal
The Government of India has established a comprehensive system to speed up and streamline the business registration process – known as Udyam registration. Udyam registration is a completely online, paperless and self-declared process. To promote MSMEs to register, Udyam registration.
It is important to remember that the Udyam portal is the only portal to perform MSME registration or perform any process related activities. No other separate online or offline system, service, agency or individual is allowed to apply for an MSME.
How to register your MSME on Udyam: step by step guide
According to the latest data available as of December 2022, more than 1.25 businesses have been registered under Udyam. Signing up for Udyam MSME is a fairly straightforward process, consisting of five simple steps. But before you start applying, you should have the following information on hand
- Adhaar Number
- Permanent Account Number (PAN)
- Goods and Services Tax Identification Number (GSTIN)
- Current Bank Account
Expenses PAN and GST-related details of the company’s investment and revenue are automatically extracted from government databases.
MSME Udyam Registration Process: Udyogadhar Certified Online
MSME Registration Process is extremely easy and user friendly.For any entrepreneur, the online MSME registration process is easy and is as follows:
Go to the MSME Registration website (udyamregisteration.org) and click on “Register here on the homepage.
On the next page enter your Aadhar details and click “generate OTP”.An OTP will be sent to your Aadhar linked mobile number.
Once the OTP is verified, you will be redirected to the form.
Complete the form with the requested details and click “submit” once you are done. Your MSME application will be processed online once you click “Submit”.
After completing your registration, you will receive an “electronic MSME registration certificate” to the email address you entered in the form.It usually takes 1-2 hours.
What are the benefits of MSME Udyam Registration?
After registering your business on Udyam, you can avail tax benefits, subsidies, MSME loans, and more. Here are some benefits of registering Udyam MSMEs in India:
Attractive interest rates on MSME loans –
Bank loans for registered MSMEs have attractive interest rates. Some small business and MSME loan programs do not require collateral to qualify for an MSME loan. IndusInd Bank offers a wide range of financial support to MSMEs with personalized incentives.
50% off Patent Fees –
To patent their business ideas and processes, registered MSMEs are eligible for incentives of up to 50%. To use this government scheme, a certificate of registration of registered MSMEs is required.
Overdraft Interest Free for MSMEs –
A registered MSME can get up to 1% off the interest they pay at any bank or financial institution.
Eligibility for Industry Promotion Grants –
Under many government programs, registered MSMEs can receive industry promotion grants to market their businesses globally. This may involve receiving remuneration for attending trade shows, marketing campaigns and other events.
Action against late payments –
When a registered MSME supplies goods or services to another business and payment is not made within 45 days, the government empowers MSME calculates compound interest on the outstanding balance each month. And the interest to be paid is three times the rate allowed by the RBI.
Also Read how to Download Udyam Certitifcate
Electricity Bill Subsidy –
Especially in the case of manufacturing facilities, registered MSMEs are also eligible for electricity bill discounts under certain circumstances.
Free ISO Certification –
Government of India undertakes to cover all ISO registration fees in case the registered MSME obtains ISO certification. Unregistered MSMEs are not eligible for this refund.
Long Term Tax Benefits –
Only registered MSMEs are eligible for a maximum 15-year extension of the Minimum Alternative Tax Credit (MAT), as opposed to the standard 10-year grace period for all other businesses.
Government Tendering –
As the Udyam registry portal is directly connected to several government e-marketplaces and state government portals for tender issuance, registered MSMEs can receive additional support and increase receipt of government contracts.
The MSME sector in India is brimming with enormous potential. To build their capacity and resilience, the Indian government has launched a number of programs to support existing businesses and encourage the establishment of new businesses. MSMEs are and will continue to serve as engines of sustainable economic growth, creating equitable opportunities and bridging the divide between rural and urban areas.
Obtaining a Udyam registration is a crucial step for any small or medium-sized enterprise in India looking to maximize its potential. This guide provides a complete and easy-to-follow overview of the process, covering everything from eligibility criteria and registration procedures to the benefits of Udyam certification. By following the steps outlined in this guide, business owners can streamline their operations, access government schemes and subsidies, and gain credibility in the marketplace. Don’t miss out on the opportunity to take your business to the next level – start your Udyam registration today!