What is Udyam Registration?
The new notification issued by the Indian Government says that from July 01, 2020, an MSME (Micro Small and Medium Enterprises) will be known as Udyam, and the enrolment or the registration process will be known Udyam Registration.
With a new Udyam registration certificate, the government of India validates the existence of the business. And all the business associated with the Udyam can avail numerous benefits derived from the various relief schemes offered by the Ministry of MSME for the protection and growth of small businesses in India.
Udyam Registration benefits
There are numerous benefits of registering and getting Udyam certificate for your business, here we have mention 16 benefits of Udyam registration.
These benefits are listed out as per the schemes offered by the Ministry of MSME for the development of micro small and medium business enterprises in India. The same benefits can also be availed by the Udyam registration certificate holder and prove to be advantageous for them.
1 – Interest rate Subsidy on Bank loans
2 – Collateral free loans from banks
3 – Protection against delayed payments, against material/services supplied
4 – Special beneficial reservation policies in the manufacturing/ production sector
5 – Ease of obtaining registrations, licenses, and approvals.
6 – MSME Registered entity gets eligible for CLCSS (credit linked capital subsidy scheme)
7 – International trade fair special consideration
8 – Government security deposit (EMD) waiver (Useful while participating tenders)
9 – Electricity bills concession
10 – Stamp duty and registration fees waiver
11 – ISO certification fees reimbursement
12 – Direct tax laws rules exemption
13 – NSIC performance and credit rating fees subsidy
14 – Patent registration subsidy
15 – Barcode registration subsidy
16 – Industrial Promotion Subsidy (IPS) Subsidy Eligibility
Turnover & Investment in plant and machinery or equipment the following criteria is declared by the Ministry of MSME.
Micro enterprise units : Enterprise with investment up to Rs 1 crore with a turnover of less than 5 crores will now be called small enterprise units.
Small enterprise units : Enterprise with investment up to Rs 10 crore with a turnover of less than 50 crores will now be called small enterprise units.
Medium enterprise units : Enterprises with investments up to Rs 50 crore with a turnover of less than Rs 250 crore will now be called Medium units.
