What is Udyam Registration?

Udyam Registration is an online registration platform created by the Government of India for small, medium, and micro enterprises. Earlier, it was also referred to as Udyog Aadhaar or MSME Registration, and now Udyam Registration.

Any small business, upon such registration, receives a unique Udyam Registration Number (URN) and e-certificate, which  serves as its identity.

Why is Udyam Registration Important for MSMEs?

There are millions of unregistered small enterprises in India. They do not have identification cards, government papers, or law documents. They are hence disadvantaged when accessing bank loans, availing government schemes, or working with large enterprises.

With Udyam Registration:

• Enterprises get legal recognition of government.
• Government subsidies become more accessible.
• Loans Would be easy to aceess with lower intreset rate and less paper work.
• They gain chances to get involved in tenders and government projects.

More markets and new possibilities emerge.

 Advantages of Udyam Registration

 Loans and Financial Support Made Easy

Udyam-registered MSMEs are able to get loans from banks and NBFCs easily and with minimal paperwork. They are given loans without collateral and low-cost interest rates.

Advantages of Government Schemes

The state and central governments operate numerous schemes for MSMEs, including subsidies, exemption from taxation, technology upgradation, skill training, etc. All such schemes are available only after Udyam registraterd Business.

Market Trust and Credibility

Udyam Certification is a formal certificate of a business. It enhances customer, investor, and partner trust. It enables small enterprises to compete on a large scale.

Access to e-Marketplaces and Government Tenders

Registered MSMEs can participate in the Government e-Marketplace (GeM) and government tenders. This introduces them to heavy orders and new markets.

Legal and Tax Advantage

Registrered MSMEs gets tax exemptions, GST exemption limits, and other legal advantages. It protects the business by placing it under a legal umbrella.

In what ways has Udyam Registration increased the success of MSMEs?

 Steps Towards Digital India

Udyam Registration is entirely online. Anyone can register within a few minutes by entering their Aadhaar number and basic details. This places small-town or village entrepreneurs in a position where they can register and utilize it easily.

 Financial Inclusion

Earlier, it used to be very hard for small businesses to get loans from banks. But Udyam Registration has made its credit profiles robust. They are now able to grow their businesses by availing loans, buying new equipment, and generating new jobs.

Competitive Strength

Registered enterprises have a fair chance of competing with big business houses. Government tenders and catering to big clients are no longer the prerogative of big companies.

Contribution towards the Self-Reliant India Mission

The Indian government wants India to be self-reliant. Udyam Registration has been empowered for small businesses so that they can step up production in the country, not just fulfill domestic needs, but also export.

Entrepreneurial Changes

A small trader in handicrafts, after becoming registered under Udyam, got registered on the GeM portal and started supplying directly to government offices.

A female entrepreneur, after registering, took advantage of the Startup Loan Scheme and launched a boutique of her own that now employs scores of women.

Subsidies and tax relief have also benefited the bulk of the small manufacturing units in reducing their cost of production and enhancing their profitability.

The above instances indicate that the Udyam registration has actually changed the trajectory and fate of small-scale enterprises.

How to Register? (Briefly)

• Visit the official Udyam registration website and fill out the Udyam registration form.
• Give your Aadhaar number and business details.
• Click on the submit button.
• The Udyam Certificate will be generated automatically.