Udyam Registration Certificate: Key Benefits You Should Know About

Posted on Monday, October 14th, 2024 | By IndusInd Bank

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in driving the Indian economy. They provide jobs to people and aid in the financial growth of the nation. The government has introduced the Udyam Registration to support MSMEs.

By registering via the Udyam process, MSMEs can gain better recognition and have access to various benefits. In this article, we look at what Udyam Registration is and the key benefits it offers.

What is Udyam Registration?

First, let’s understand what Udyam registration is. 

• It is a government initiative to simplify the registration process for MSMEs in India. Udyam registration replaces the old Udyog Aadhaar Memorandum (UAM). It is now the standard method for MSMEs to register themselves. 

• When an enterprise registers with Udyam, it receives an online Udyam Registration Certificate, which includes a dynamic QR code. When you scan this QR, you will be directed to the portal’s web page, which provides details about the enterprise. 

• The registration process is entirely online, free, paperless, and based on self-declaration. You do not have to provide any documents or proof to register an MSME. Only your Aadhaar Number is required.

Now that you know what the Udyam registration certificate is, let’s see what benefits it can offer you. 

Benefits of Udyam Registration Certificate

By registering as an MSME with Udyam, enterprises can enjoy the following benefits:

1.      Access to Government Schemes

For MSMEs, Udyam registration opens the doors to various government schemes. They can benefit from schemes such as the Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Public Procurement Policy, and Protection against delayed payments.

2.      Bank Loans at Lower Rates

MSME registration can make it more affordable to opt for bank loans. The interest rates for registered MSMEs can be lower compared to regular loans.

In addition, MSMEs are eligible for priority sector lending from banks. This ensures even better access to credit.

3.      MAT Credit Extension

With the Udyam registration certificate, the credit for Minimum Alternate Tax (MAT) can be carried forward for up to 15 years instead of the standard 10 years.

4.      Cost Reductions

MSMEs registered with Udyam can benefit from various rebates and concessions. This can reduce the cost of obtaining patents or setting up industries.

5.      Ease in Acquiring Government Tenders

The Udyam Registration Portal is synced with the government e-marketplace and various state government portals. This allows registered MSMEs to obtain government tenders more easily.

6.      One-Time Settlement Fee

MSMEs can benefit from the One-Time Settlement Fee for unpaid amounts. This can ease  pressure, especially during financial crises. 

7.      Registration for Multiple Activities

Businesses can add or specify any number of activities, including service or manufacturing, under one Udyam registration certificate.

8.      Subsidies, Exemptions, and Concessions

MSMEs can avail barcode registration subsidies, direct tax exemption schemes, and reimbursement of ISO certification fees. Registered MSMEs can also enjoy concessions on electricity bills to reduce their operational costs.

Also Read: Check Out the Benefits of Current Accounts

Conclusion

The Udyam Registration Certificate is more than just a document. It is a useful tool which MSMEs must use at its full potential to reach new heights. By understanding what Udyam Registration is and the benefits it brings, MSMEs can use these opportunities to expand and thrive in the competitive market.

To make the most of your Udyam Registration Certificate, it is crucial to have a dedicated business bank account that understands your unique needs. IndusInd Bank offers a range of current account options for MSMEs so that they have a secure and convenient platform to manage their finances. 

We also offer seamless digital banking geared towards businesses – our various online baking portals and applications ensure that you can carry out your financial operations – on the go! 

Open a current account online with IndusInd Bank today! 

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information