Udyam Registration Certificate and Its Benefits for MSME

Micro, small, and medium enterprises (MSMEs) are an important economic unit that significantly contributes to GDP, employment, and trade in India. However, many of the MSMEs are unable to access finance and support services from the government. To solve this problem, the Indian government has introduced Udyam registration.

This is a simple and free online process that helps your business get recognized as an MSME. With this certificate, businesses can enjoy many amazing benefits. So, let us explore its key benefits in this blog.

Benefits of Udyam Registration for MSMEs

1. Enhanced Access to Government Schemes

The Government also runs numerous schemes that provide financial support for MSMEs for their growth. If your business is Udyam-registered, it is eligible to take advantage of several schemes by the Indian Government, including the Credit Guarantee Scheme, the Public Procurement Policy Scheme, and Capital Subsidy Schemes.

2. Easier Bank Loans

Udyam registration can help you acquire a loan at a lower interest rate. Many banks also offer collateral-free loans under specific schemes so that you do not need to provide any type of security in exchange. Because of this, businesses can easily get the funds without any complicated paperwork and use them for their business growth.

3. Cost Savings

Udyam-registered businesses can save money in different ways. In many states, businesses can get discounts on electricity bills, require less pay for trademark and patent registration, and sometimes they also get tax benefits.

4. Handy Government Tender Participation

Applying for tenders becomes simpler with Udyam registration. If your business is Udyam registered, then your chances of winning a government contract increase compared to others. Your business may also be exempt from paying earnest money deposits (EMD).

5. MAT Credit Extension

With Udyam registration, you can keep Minimum Alternate Tax (MAT) credits for extended up to 15 years, which is generally 10 years. This means when your business is running with less profit at that time you can use these credits to pay less tax and save money in hard times.

6. One-Time Settlement of Dues

Businesses can use a one-time settlement scheme to clear unpaid loans or dues. Here, you can pay a part of what you owe in a single payment with easier terms. With these, MSMEs can clear old debts easily, avoid legal trouble, and make a fresh start to grow again.

Features of Udyam Registration

• The registration process is completely online, so you are not required to submit any documents in person. This saves time and effort.
• It is a single-form registration process.
• There is no fee for registration.
• For this, MSMEs’ eligibility is classified based on the whole investment.
• There is no requirement to renew the certificate again.

Conclusion

Udyam registration is a smart move for any MSMEs that are looking for growth. It helps your business to get government recognition and take many benefits, including government schemes, easier bank loans, access to government tenders, MAT credit extensions, and operational cost savings. So, get your Udyam registration certificate now with Udyam Online and take advantage of many amazing perks.