15 Benefits of MSME Udyam Registration

What is Udyam Registration?

Udyam Registration is the new MSME registration process introduced by the Government of India on July 1, 2020, to simplify the earlier MSME registration system known as Udyog Aadhar Registration. The term "Udyam" is now used to refer to enterprises registered under this system, and the registration process is officially known as Udyam Registration.

As per the notification issued by the Union Ministry of Micro, Small, and Medium Enterprises (MSME) on June 1, 2020, all MSMEs will now be referred to as “Udyam”. This new system is fully online, simplified, and designed to create more opportunities for Micro, Small, and Medium Enterprises by helping them achieve growth through easier access to government benefits.

There are multiple advantages to registering under Udyam, especially for entrepreneurs and startups, including easier access to loans, subsidies, tenders, and various government schemes.

Key Highlights of the New Udyam Registration System:

• Export Turnover Exclusion: Exports of goods or services (or both) are excluded while calculating turnover for classification as a Micro, Small, or Medium Enterprise.
• Integration with GST & Income Tax: The new Udyam system is fully integrated with the GST and Income Tax databases, making it easier to validate enterprise details through PAN and GSTIN.
• Paperless & Self-Declaration Based: The entire registration process is based on self-declaration, with no need to upload any documents or proof.
• Aadhar-Based Registration: A business can register simply using the Aadhar number of the applicant. No paperwork is required.

Classification of Enterprises under Udyam Registrations

MSME Classification under Udyam Registration

The Government of India has redefined the classification of Micro, Small, and Medium Enterprises (MSMEs) based on their annual turnover and investment in plant and machinery or equipment. Here is the updated classification:

• Micro Enterprises
  Enterprises with an annual turnover of less than ₹5 crore and investment in plant and machinery or equipment not exceeding ₹1 crore.
• Small Enterprises
  Enterprises with an annual turnover of less than ₹50 crore and investment not exceeding ₹10 crore in plant and machinery or equipment.
• Medium Enterprises
  Enterprises with an annual turnover of less than ₹250 crore and investment not exceeding ₹50 crore in plant and machinery or equipment.

MSME Udyam Registration Benefits

There are several benefits associated with Udyam Registration. Below are some key advantages that every business owner should know before registering. These benefits are provided under various government schemes by the Ministry of MSME and are available to all Udyam Registration Certificate holders.

Key Benefits of Udyam Registration:

1. The registration process is completely online, paperless, and based on self-declaration.
2. No documents are required for registration; only the Aadhar card of the applicant is needed.
3. Priority and benefits in Government tenders.
4. Subsidies on Income Tax and GST return filings.
5. Interest subsidy on business loans from banks.
6. Subsidies on Patent and Barcode registration.
7. Eligibility for Industrial Promotion Subsidy (IPS)
8. Concession on electricity bills.
9. Collateral-free loans from banks.
10. Export turnover is excluded while calculating the total turnover for classification.
11. Protection against delayed payments for goods and services supplied.
12. It promotes ease of doing business and opens up new opportunities for enterprises.
13. Entrepreneurs can now participate in International Trade Fairs, gaining global exposure.
14. Reimbursement is available for expenses incurred on ISO Certification.

Who Can Qualify for Udyam Registration Benefits?

Any individual or entity engaged in business activities can qualify for Udyam Registration benefits, provided they meet the MSME classification criteria. The following types of business structures are eligible:

1. Proprietorship Firms
2. Hindu Undivided Families (HUF)
3. One Person Companies (OPC)
4. Partnership Firms
5. Limited Liability Partnerships (LLP)
6. Private Limited Companies
7. Public Limited Companies
8. Cooperative Societies
9. Any Association of Persons (AOP)

These entities can register under Udyam and avail various government benefits, subsidies, and schemes designed to support and promote Micro, Small, and Medium Enterprises (MSMEs).

Process to Apply for the Benefits of Udyam Registration

You can just follow this simple procedure for availing Udyam Registration benefits:

Step 1: First, visit the new online MSME Udyam Registration online portal

Step 2: No,w under this portal, you will be asked to fill out the Udyam Registration form.

Step 3: After the form submission, you will be asked to pay for the payment of the Udyam registration application

Step 4: One of the registration professionals will proceed with your application

Step 5: After 1-2 hours, you will get the Udyam Registration E-Certificate on your registered email address, and you can also take a printout of this Udyam e-certificate.

Why Choose Us for Udyam Registration?

We specialize in helping startups and entrepreneurs get registered and certified under various Indian government processes, including the MSME Udyam Registration. Our team is highly trained and experienced in handling the new Udyam Registration system for Micro, Small, and Medium Enterprises.

Our clients trust us because of our efficient service and customer-friendly approach. Many of our satisfied customers return to us for other registrations, updates, and compliance-related services.

If you face any issues during the registration or form submission process, feel free to contact us directly at udyamregistration.co. Our support team is always ready to assist you.

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