The idea behind introducing Udyam Registration was to simplify the procedural format that business owners had to go through to register their business under Micro Small Medium Enterprise or MSME.
Before the introduction of Udyam Registration, the procedural format for the same was quite hectic and a time-consuming bureaucratic process that used to require handling lots of paperwork. However, with the introduction of Udyam Registration, things have changed and to some extent, have improved for medium, small, and micro-enterprises.
If you own a medium, small or micro-enterprise and you haven’t registered your MSME yet, you should know that on registering your MSME via Udyam Registration, you will be liable to enjoy numerous benefits.
Prior to the UAM system, there used to be a former system of EM-I/II (Entrepreneur Memorandum). Under this system, entrepreneurs used to opt for a heterogeneous system.
Some of them used to rely on the national portal, and some of the states had their portal for carrying out MSME registration. Additionally, Few of them used to rely on manual paperwork.
However, things have changed after the replacement of the old system.
The main question that several newbie entrepreneurs have in their minds is what Udyam Registration is. If you are having the same question, then you are at the right place.
Udyam Registration also known as MSME Registration is nothing but a government registration that is provided along with a recognition certificate and a unique number. This is to certify small/medium businesses or enterprises.
The central motive behind the launch of this facility was to offer a way to the government to provide the maximum benefits to medium or small-scale businesses or industries in India, who are registered via MSME through their Aadhar Card Number.
The owner, director, or proprietor of the entity will provide his/her 12-digit Aadhar Number. This is a compulsory guideline whether the enterprise or entity is a sole proprietor, an LLP, a Private limited company, or anything else. It should have the recognition certificate provided via the MSME registration process.
One will get to enjoy several advantages after registering his/her business and by obtaining Udyam Registration. The best thing about obtaining Udyam Registration is that the process is quite simple and in addition to that, one won’t have to handle the paperwork for obtaining Udyam Registration. Check out the top benefits:
- Udyam registration helps in getting government tenders
- Due to the Udyam, the bank loans become cheaper as the interest rate is very low (Upto 1.5% lower than interest on regular loans
- There are various tax rebates available for Udyam
- Becomes easy to get licenses, approvals, and registrations, irrespective of the field of business. Higher preference is given to businesses registered under Udyam for government license and certification.
- They get easy access to credit in lower interest rates
- Registered Udyams gets tariff subsidies and tax and capital subsidies
- Registration helps in the reduction of the cost of getting a patent done or the cost of setting up the industry. With the help of many rebates and concessions available.
In case of any discrepancy or complaint, the General Manager of the District Industries Centre of the concerned District shall undertake an inquiry for verification of the details of Udyam Registration submitted by the enterprise.
Thereafter, forward the matter with necessary remarks to the Director or Commissioner or Industry Secretary concerned of the State Government who after issuing a notice to the enterprise and after allowing presenting its case and based on the findings, may amend the details or recommend to the Ministry of Micro, Small or Medium Enterprises, Government of India, for cancellation of the Udyam Registration Certificate.