If you have thought about having your entrepreneurial venture, you have stressed the formalities. However, now gone are the days of the lengthy and procedure-packed registration of micro, small, or medium enterprises. The Ministry of MSME has an online portal available for any aspirant (with the criteria met). If you’re planning to do udyam registration for MSME then keep reading this article. In this article, we’ve covered everything about MSME Registration and its benefits.
Without any further delay, Let’s begin!
Introduction to Udyam Company Registration
Udyog Aadhar is now known as MSME Udyam Registration from July 2020. Furthermore, as India continues to grow into the tech-lined market, trying to bring together all that goes inside the country to the technological platform, the Micro, Small & Medium Enterprises sector has not been left behind. And the MSME Udyam Registration process is one such improvement. Any MSME registration, without any mediator, can register their enterprise and get the benefits.
The registration brings you a Recognition Certificate and a Unique Number required for the enterprises to set up. This e-certification has eased the burden off the shoulders of new ventures and has been quite a helpful step toward digitizing India.
Udyam Register has been helpful in many firms, especially with the rising registrations we see in states like Maharashtra. It is especially the case when we notice the whole Digital India scenario with the Arms Nirbhar Bharat scheme in mind, as simplified MSME registration will help promote start-ups more and more.
Who are all eligible for Udyam Registration?
Although the registration is entirely online, some requirements must be met to get your enterprise certified. Some of these eligibility criteria include your enterprise falling into any one of these categories:
Micro
- Investment in equipment or machinery must be less than one crore.
- Turnover is required to be up to 5 crores.
Small
- The investment must be less than ten crores.
- Turnover must be less than 50 crores.
Medium
- The investment is needed to be up to 50 crores INR.
- The turnover is required to be up to 250 crores INR.
The above guidelines list you under the MSME sector, making you eligible. However, it would help if you were prepared for document requirements such as your Aadhar number, business owner name, organization type, business bank details, and other details of and relating to the business.
Major documents required, however, include:
- An Aadhaar number.
- A 12-digit unique identification number.
- A Pan Card.
- The GST number of the enterprise is to be registered.
- Bank account details of the business.
What are the benefits of Udyam Registration?
Udyog Aadhaar for MSME Udyam Registration has been a massive boon for saving a lot of hassle in registering an enterprise. And all thanks to this, the path of promotion of Digital India and Atma Nirbhar Bharat is now more apparent. But, why should people register through this portal, and what benefits shall they receive from Udyam registration benefits?
These are the benefits of Udyam Registration:
If you register with Udyam Registration, you shall benefit from getting loans without collateral. The need to put an asset up for a loan is gone with MSME Udyam Registration, which is for a mortgage.
- Under direct tax laws, you get a tax exemption.
- With Udyam Registration, you can quickly get your hands on licenses, registrations, and approvals.
- The barrier of interest rate goes down noticeably.
- With a 50% grant, you get the profit of patent registration.
- Electricity bill concession
- You can get a barcode registration with a subsidy grant.
MSME Registration Benefits
The barcode registration and electricity bill can often worry the enterprise owner, considering the different issues people had to go through before digitization hit India. Hence, reimbursement schemes, subsidies, discounts, cheaper interest rates on loans, and collateral-free loans are lifesavers.
Apart from these Udyam registration benefits, you also get provided with a lot of other government subsidies. The provision of these was actually to promote the use of the platform. However, if you go into it, you'll also find many other advantages, such as the reimbursement of the ISO (International Organization of Standardization) certificate. The subsidies on electricity and other areas help businesses flourish without the burden of additional costs.
There also are beneficial tools such as the protection provided against delayed payments and concessions in the case of electricity bills. You may also get special access to various programs partnered with and started by the government. Intellectual Property Rights or IPR registration will have a discounted price for those registered under MSME Udyam Registration.
The process, in return, gets the data to the GST network alongside Income Tax. And this brings the huge hither-thither out of the way, as you enter everything in one place and with the extra security and privacy tools provided. Also, another critical highlight is that there is absolutely no need for a renewal of registration.
With no paperwork in any of the phases, anyone with a smartphone and a steady internet connection can get their MSME registration done. And this was the first thing taken care of in creating accessible registration portals in India. Also, the various other MSME registration benefits discussed, such as the cheaper bank loans, are a more explicit hint at the growing start-up culture in India and its open support and promotion even to it.
Final Verdict
With the MSME registration benefits listed and the hassle-free work that the Udyam portal provides, one will surely not want to miss the opportunity. However, as in the statistical data, many small and medium enterprises don't register. It could be a lack of knowledge and exposure, which can be cleared with a consultation. Lawgical India can help manage this area of expertise, getting the path paved. Lawgical India has the best specialist to assist you.
