Micro, small, and medium-sized enterprises (MSMEs) contribute intensely to India’s GDP (Gross domestic product). More than 110 million individuals are utilized by MSMEs, truth be told. However, these endeavors face a few difficulties and issues while developing or growing their impressions.
To identify and help these MSMEs, the Indian government stepped up on May 13, 2020, to declare another measurement for classifying MSMEs in India. According to this grouping metric, all MSMEs in India would be known as ‘Udyam’ and should go through a registration process known as ‘Udyam Registration‘. The Union Cabinet endorsed this characterization, and the Udyam registration process became compulsory for all MSMEs from July 1, 2020.
Why was Udyam introduced?
Udyam is a scheme introduced by the Government of India in 2020 to provide support and promote the growth of small and medium-sized enterprises (SMEs) in the country. The scheme was introduced with the aim of replacing the previous scheme, known as the Micro, Small, and Medium Enterprises Development (MSMED) Act, which had been in place since 2006.
The Udyam scheme was introduced to simplify the process of registration for small businesses, reduce the regulatory burden on them, and provide better access to credit, technology, and other support services. It also aims to enhance the competitiveness of these businesses, promote innovation, and encourage their growth.
Under the Udyam scheme, micro, small, and medium-sized enterprises are categorized based on their investment and turnover limits and are provided various benefits and incentives such as easier access to credit, technology, and market linkages. The scheme also provides for the creation of a centralized online portal for registration, tracking, and management of these enterprises, making it easier for them to avail of government support and services.
Benefits of Udyam registration
- Access to credit at lower interest rates
- Eligibility for various incentives and subsidies
- Protection against delayed payments from buyers
- Preference in government tenders
- Online visibility and credibility through a unique identification number
- Access to training and development programs
How to complete your Udyam registration?
Completing Udyam registration is a relatively straightforward process that can be done online through the Udyam registration portal. Here are the steps to complete your Udyam registration:
- Visit the Udyam registration portal.
- Click on the “new udyam registration” tab.
- Enter your Aadhaar number and personal details as required.
- Enter the details of your enterprise, such as the name, type, address, and date of commencement.
- Enter the bank account details of your enterprise.
- Choose the appropriate category of your enterprise based on the investment and turnover limits.
- Self-certify that the information provided by you is correct.
- Submit your application.
- You will receive a unique Udyam registration number and a registration certificate in digital format.
It is important to note that Udyam registration is free of cost and requires no documentation or proof of investment and turnover at the time of registration. However, it is recommended that you keep all relevant documents and information ready in case of any future verification or inspection by the authorities.
Suggested Read- Update udyam certificate
Importance of Udyam Registration Certificate
Udyam Registration Certificate is a registration certificate that is issued by the Ministry of Micro, Small, and Medium Enterprises (MSME) to recognize and certify a business as a Micro, Small or Medium Enterprise (MSME) in India. The Udyam Registration Certificate is an important document that offers several benefits to MSMEs.
Some of the key benefits of the Udyam Registration Certificate are:
- Eligibility for Government schemes: Businesses that are registered under the Udyam Registration Certificate are eligible to avail of various government schemes such as credit guarantee schemes, subsidies, and other benefits that are exclusively meant for MSMEs.
- Access to credit: Banks and financial institutions give preference to MSMEs that are registered under the Udyam Registration Certificate while granting loans, credit facilities, and other financial assistance.
- Protection under the MSME Development Act: The Udyam Registration Certificate provides legal protection under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006. MSMEs registered under Udyam are eligible for various protections and benefits such as timely payment, protection against delayed payments, and more.
- Government tenders: MSMEs that are registered under the Udyam Registration Certificate are eligible to participate in government tenders which offer a great opportunity for businesses to expand their operations and scale up their business.
- Quality certification: Businesses that are registered under Udyam Registration Certificate can avail of quality certification and standardization such as ISO, BIS, and other certifications that are necessary to compete with larger businesses and expand their market.
In conclusion, Udyam Registration Certificate is an essential document for MSMEs in India. It provides various benefits and opportunities that can help businesses grow and succeed in the long run.
