On 1st July 2020, Government of India introduced Udyam registration to classify business enterprises as micro, small and medium enterprises and their registration on Udyam website. The main reason for its birth is to help MSMEs during the coronavirus pandemic.
Udyam’s registration of MSMEs offers a number of benefits to small business owners in India. In this blog, we will discuss the top 10 benefits of registering your business under Udyam’s MSME program.
What is Udyam Registration?
This is the number given to business owners, including start-ups, who wish to register their business entity as a Micro, Small or Medium Enterprise or MSME. This registration number serves as the identity for these business owners. Companies are divided into these categories based on the company’s investment and revenue.
Learn about the main benefits of Udyam registration
There are many benefits that you can get from Udyam Registration in India. We cannot list all the benefits here, but we have found the top 10 benefits of subscribing to Udyam in this informative article.Let’s look at them.
1) MSMEs get benefits from banks
After introducing Udyam registration, all banks and even financial institutions like Muthoot Finance Ltd, Bajaj Finance Limited, HDB Finance Services etc. More priority is given to micro, small and medium enterprises and specially planned for them. For example, MSMEs can easily get a business loan at a very low interest rate (up to 1.5% lower than conventional business loans).
2) Amazing tax advantages
Business owners can benefit from an excise tax exemption program, depending on their sector of operation. They can benefit from a direct tax exemption for the first years of operation.
3) Benefits on electricity bills
Small business owners registered on the Udyam portal can get discounts on their monthly electricity bills and can save their resources.
4) License approval becomes easier
For companies, it becomes very easy to register and get approved for a variety of registrations and licenses if they are already registered with Udyam.
5) MSMEs can easily register for government tenders
MSMEs registered under this registration are allowed to participate in government tenders and may be exempted from registration.
6) Interest on Overdraft (OD)
MSMEs qualify under the Credit Guarantee Trust Fund Program to receive benefits on OD and are also exempt from 1% interest on it. This minimizes your EMI loan.
7) State Government Benefits
State Governments like UP, UK, etc. subsidized taxes, electricity, and access to trade zones, and provided sales tax rebates and purchase incentives on the goods they left behind.
8) Central Government Interest
Central Government of India is BJP (Bharatiya Janata Party) which has launched various beneficial programs like Atma Nirbhar Bharat, Credit Guarantee Scheme, Credit Management Standard quality and quality technology tools, business woman, zero efficiency and no errors and many other errors for the benefit of small businesses.
9) International Business Opportunities
MSMEs can benefit from the opportunity to participate in international trade shows and fairs where you can showcase your products and services to a wide audience worldwide. more demand.
10) Receive grants
MSMEs can receive grants from the National Small Industries Corporation or NSIC as well as a credit rating and qualify for an Industrial Promotion Grant (IPS).
Also Read more about the Benefits of Udyam Registration in India
What documents are needed to register for Udyam? The registration of
Udyam aadhar in India is completely based on self-declaration and paperless process.Remember that no documents or proofs are required for registration except your aadhaar card number.
Some of your documents will be automatically pulled from government databases, such as PAN and GST details. Remember that PAN, TAN and GST numbers are required as of April 1, 2021.
All types of businesses are eligible for Udyam registration certificates or licenses, including joint stock companies and public companies. Limited Liability Company, Partnership, Limited Liability Partnership (LLP), Sole Proprietorship (OPC), Hindu Undivided Family (HUF) and Sole Proprietorship.
Conclusion
Registering your business under the Udyam MSME program offers a number of benefits that can help your business grow and succeed.These benefits include access to government programs and grants, sector priority loans, and various tax benefits. Furthermore, it improves the reliability and visibility of your business, making it easier to do business with other entities. This blog has highlighted the top 10 benefits of Udyam MSME registration and by leveraging these benefits your business can thrive in the competitive Indian market.