In July 2020, the Indian government introduced the Udyam registration system for classification of business enterprises into Micro, Small and Medium sized enterprises, as well as their registration in Udyam’s website. As a result of the Coronavirus pandemic, it was introduced primarily to assist MSMEs.
Can you tell me what Udyam registration is?
A micro, small, or medium enterprise number is issued to business owners, including startups, who want to register their businesses as MSME. These business owners are identified by this registration number. According to the investment and turnover of the company, businesses are categorized into these categories.
Check out the Udyam Registration Benefits
Registration in Udyam in India comes with plenty of benefits. Udyam registration has a lot of advantages, but we’ve compiled a list of the top 10 in this informative post. Here are a few of them.
1) Banks provide benefits to MSMEs
All banks and even financial institutions, including Muthoot Finance Ltd, Bajaj Finance Limited, HDB Finance Services, etc., are giving a higher priority to micro, small and medium business enterprises since the introduction of Udyam registration. The interest rates on business loans for MSMEs are very low (upto 1.5 percent lower than those on regular business loans).
The benefits of taxation are amazing
Depending on their industry, business owners can take advantage of the excise exemption scheme. In the early years of their business, they can get direct tax exemptions.
The reduction of electricity bills is one of the benefits
Small business owners can save resources and get some concessions on their monthly electricity bills by registering on the Udyam portal.
There has been an improvement in the approval process for licenses
If a business is registered with Udyam, it has become very easy to apply for and get approval for a variety of licenses and registrations.
The application process for government tenders is easy for MSMEs
Registration under this registration allows MSMEs to take part in government tenders and qualify for exemptions.
In the case of an overdraft (OD), interest will be charged.
With the credit guarantee trust fund scheme, MSMEs can get advantaged on OD and also get a 1 percent interest exemption. EMIs are minimized as a result.
Benefits provided by state governments
Taxes, electricity, and entry into the business sectors are subsidized by the state governments, and rebates in sales taxes and preferential buying are given for the products left by the state governments.
There are a number of benefits for the Central Government
BJP (Bharatiya Janata Party) is the central government of India and has introduced numerous beneficial schemes to benefit small businesses, including Atma Nirbhar Bharat, credit guarantee schemes, quality management standards and quality technology tools, women entrepreneurs, zero effect and zero defect programs, etc.
The opportunity to do business internationally
You can display your products and services to a wider global audience by participating in international fairs and trade shows.
Subsidies Can Be Beneficial
In addition to NSIC subsidies, MSMEs can apply for Industrial Promotion Subsidy (IPS) subsidies as well as credit ratings from NSIC.