Udyam registration is a step to provide aid to MSMEs (Micro, Small, and Medium Enterprises) under the scheme of Self-Reliant India, 2020, the ins and outs of which are explored in this article.
Entrepreneurs and people in business might wonder why they should opt for the Udyam registration or how Udyog aadhar can propel their business forward. Let us show you how choosing to register your business can fetch you multiple advantages.
How is it Important for your Business?
Udyam registration, formerly known as Udyog Aadhar Registration, was introduced to ease the process of registering one’s business as a micro, small, or medium enterprise and avail of the benefits provided by the Indian government. Micro, Small, and Medium Enterprises (MSMEs) and privately owned businesses are important for any country’s economy as they provide employment and utilise and organise resources. To recognise their significance and encourage people to start businesses, the government introduced the Udyam registration on 1 July 2020.
Eligibility Criteria
On or after 1 July 2020, all existing firms registered under the Udyog Aadhaar Memorandum (UAM) and Entrepreneurs Memorandum (EM)–Part-II must re-register on the Udyam portal. Any company registered with another ministry agency under the Department of Micro, Small, and Medium Enterprises must register with the : https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm. The enterprises registered as micro, small, and medium businesses will receive the benefits provided by the government. Here is how you can classify your business:
- A company whose machinery and equipment investment does not exceed ₹1 and the turnover does not exceed ₹5 crores can be registered as a micro-enterprise
- A company whose machinery and equipment investment does not exceed ₹10 crores and the turnover does not exceed ₹50 crores can be registered as a small enterprise.
- A company whose machinery and equipment investment does not exceed ₹50 crores and the turnover does not exceed ₹250 crores can be registered as a medium enterprise.
Evaluate your investment and turnover carefully to keep yourself from any trouble during the registration process.
Benefits:
Some of the advantages that Udyam registered enterprises have over others are:
- Entrepreneurs can easily obtain licenses, registrations, and other approvals after registering
- If you register for an overdraft, you will earn a 2.1% interest rate
- You can avail of a rebate on your electricity bill
- You can take bank loans at a subsidised rate of interest
- Entrepreneurs will be exempt from paying direct taxes
- You can easily obtain government tenders and tax exemptions meant exclusively for MSMEs
- You are eligible to receive a 50% discount on patent and trademark fees
- The registration process is entirely online, without the use of paper, and is very convenient
- You only need to provide your Aadhaar number for the registration process.
Schemes Launched by the Government for Registration
- Udyog Aadhaar- Once you complete your Udyam registration, your enterprise will get an identification number called the Udyog Aadhaar number. You can use this unique number to apply for government subsidies and get loans with a lower interest rate.
- Zero Defect Zero Effect- Exporters need to work hard at maintaining the quality of their products to ensure that they are not rejected during shipping. Every time they ship a product without any setbacks, exporters can request a subsidy.
- Quality Management Standards and Quality Technology Tools- In this awareness and training programme, the government aims to train MSME owners to adopt new technology to enhance their overall output and keep up with their customers’ quality expectations. For this, several renowned institutions, such as the National Productivity Council, Quality Council of India, Consultancy Development Corporation, National Recruitment Board for Personal and Teacher Training, and Standardization Testing and Quality Certification, participate and take the initiative of providing the required training. This scheme has several aspects:
- Awareness campaign
- Polytechnic teacher Training
- Two days workshop in India’s metro cities
- Implementation in several selective clusters
- A national-level workshop held in Delhi
- Grievance system– This scheme allows MSMEs to raise their complaints and get timely resolution or revert.
- Incubation- Under this scheme, the government provides up to 80% funding if your idea is selected. It aims to encourage people to come up with innovative business ideas.
- Credit Linked Capital Subsidies- This scheme attempts to motivate MSMEs regarding the use of modern technologies. Through this, MSMEs can apply for subsidies on technology and can also go for a bank loan.
- Women Entrepreneurship- Women entrepreneurs who are planning to establish their businesses would be provided with counselling and training. They can also get financial support to help empower their business.
Conclusion
The Udyam registration, which was formerly called the MSME Udyog Aadhaar Registration, is a landmark in the field of trade and commerce in the country. Make sure to organise all the required documents before you decide to register your business so that you can avoid hassles during the process.
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