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July 11, 2020

24 Benefits of Obtaining Udyam Registration for MSMEs

by Rubina Dsouza in Compliance Law

24 Benefits of Obtaining Udyam Registration for MSMEs

Introduction

Formally, MSMEs were defined in terms of investment in plant and machinery. But this criterion for the definition was long criticized because credible and precise details of investments were not easily available by authorities. Therefore in February 2018, the Union Cabinet decided to change the criterion to “annual turnover”, which was more in line with the imposition of GST.

The Central Government, after obtaining the recommendations of the Advisory Committee, had notified certain criteria for classifying the enterprises as micro, small and medium enterprises and had specified the form and procedure for filing the memorandum (Udyam Registration), with effect from 1st July, 2020.

Highlights of the Udyam Registration portal:-

I. Various portals available for udyam registration are:-

  1. udyogaadhaar.gov.in
  2. udyamregistration.gov.in
  3. msmeregistration.gov.in
  4. udyam.gov.in
  5. udyamregistration.co.in
  6. udyamregistration.biz
  7. udyamregistration.com
  8. udyamregistration.in
  9. udyamregistration.org
  10. udyamregistration.info

II. Entire registration process is online & without any paper, document or proof

III. Aadhaar number and PAN validation shall be required for Udyam Registration

IV. Old Udyog Aadhar Memorandum can be upgraded to Udyam Registration  by verifying the PAN online

V. In case of any discrepancy or complaint, the General Manager of the District Industries Centre of the concerned District shall undertake an enquiry for verification of the details of Udyam Registration submitted by the enterprise

Following are the benefits of obtaining Udyam Registration:-

  1. The business owner can avail octroi and tax conession in states laws as applicable.
  2. Claim stamp duty and registration fees waiver.
  3. Exemption of 1% interest rate on Overdraft.
  4. Can avail subsidy from NSIC and credit ratings & Eligible for IPS subsidy.
  5. Reimbursement on the payment made for obtaining the ISO certificate.
  6. Reservation of products for exclusive manufacturing by MSME and SSI.
  7. Avail Excise Exemption Scheme.
  8. Avail exemption while applying for government tenders.
  9. Exemption under direct tax laws.
  10. Enjoy easy bank mortgages and Bank Business Loans
  11. Bank loans become cheaper as the interest rate is very low (Upto 1.5% lower than interest on regular loans
  12. Becomes easy to get licenses, approvals and registrations, irrespective of field of business as business registered under Udyam are given higher preference for government license and certification.
  13. Registered Udyams gets tariff subsidies and tax and capital subsidies
  14. Interest rate Subsidy on Bank loans
  15. Protection against delayed payments, against material/services supplied
  16. Ease of obtaining registrations, licenses, and approvals.
  17. MSME Registered entity gets eligible for CLCSS (credit linked capital subsidy scheme)
  18. Subsidy is available for Patent registration
  19. Industrial Promotion Subsidy (IPS) Subsidy Eligibility
  20. One can avail 100% Collateral Free loans from all banks 
  21. Special consideration on International Trade fairs
  22. Bar Code Registration Subsidy
  23. Waiver in Security Deposit in Government Tenders and Departments 
  24. Concession in Electricity bills

If you want professional help to get Udyam Registration then click here

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