On 1st July 2020, the Government of India introduced Udyam Registration Certificate to classify business enterprises as micro, small and medium enterprises and their registration on the Udyam website. The main reason for its birth is to help MSMEs during the coronavirus pandemic.
What is Udyam Registration Certificate?
This is the number given to business owners, including start-ups, who wish to register their business entity as a Micro, Small 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 the Udyam Registration Certificate
There are many benefits you can get from Udyam Registration Certificate 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 Certificate, all banks and even financial institutions like Muthoot Finance Ltd, Bajaj Finance Limited, HDB Finance Services, etc., give more priority to micro, small, and medium enterprises and develop special plans for these enterprises. 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) Unexpected tax benefits
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.
Read more about Udyam Registration Benefits
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 in 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, the 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 Interests
Central Government of India BJP (Bharatiya Janata Party) has introduced various beneficial programs like Atma Nirbhar Bharat, a Credit Guarantee Scheme, Credit Management Using Standard Quality and quality technology tools, businesswomen, zero efficiency and no errors, and more for the benefit of small businesses.
9) International Business Opportunities
MSMEs can benefit from the opportunity to participate in international trade fairs and exhibitions where they can showcase their products and services to a wide global audience than.
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).
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