The new Udyog Registration process which the government of India/Ministry of MSME has made mandatory for all businesses in India provides many benefits. All existing Indian enterprises must register and be filed as an Udyam before 31 March 2021. After 1 July 2020, If you wish to open a small, medium or micro enterprise, you must register your business as Udyam. There are various online Udyam registration portals through which you can begin the registration process.
The entire Udyam registration process is completely free of cost and no fees are to be paid to anyone. As soon as the government of India has reviewed your application and approved it, you will be issued an Udyam registration number and an e-certificate. Once you are validated as a business owner, you will be able to avail several benefits provided by the Ministry of MSME for the protection and growth of small businesses in India.
For you to enjoy the benefits of Udyam registration, there will be no costs or fees charged. Only certain small details are required such as Aadhar number, PAN and GSTIN details.
There are about 24 great benefits of being registered as an Udyam. Some of them are as follows:
- As applicable in state laws, the owner of the business can avail tax concession and octroi.
- Exemption of 1% interest rate on Overdraft.
- Exemption under direct tax laws.
- Protection against delayed payments, against material/services supplied
- One can avail 100% Collateral Free loans from all banks
- Barcode Registration Subsidy
- Concession in Electricity bills
- Interest rate Subsidy on Bank loans
- It is easier to proclaim licenses, registrations and approvals irregardless of field of business because businesses which are registered under Udyam are given preference.
There are other benefits included with registering with Udyam. Furthermore, all business houses in India can register for an Udyam certificate. Hindu Undivided Families (HUF), proprietorship businesses, one person company (OPC), partnership firms, limited liability partnerships, co-operative societies or any associate of persons.
A lot of people are confused regarding the difference between udyog aadhar and Udyam Registration. First of all, from the 1st of July 2020, the Udyog Aadhar Registration will convert into the Udyam registration process. They are essentially the same. Secondly, the most important difference between Udyog aadhar vs Udyam is that only the Aadhar card of the business owner is required for Udyog aadhar.
Whereas Udyam registration requires GST and PAN card details of the applicant as per the new MSME definition. Additionally, Udyog aadhar is not integrated with other goverment portals such as gem and treds portal. Udyam registration on the other hand is fully integrated and registered. The Udyog aadhar form is much shorter compared to the Udyam registration form which requires all details from Income Tax and GST.
Furthermore, for Udyog aadhar registration, multiple registrations can be filled under different firm names but only one aadhar card can be registered for Udyam registration per applicant. Udyog aadhar can also be applied without the Aadhar Mobile Link Facility, but Udyam registration requires an Aadhar card that might be linked to any phone number.
The turnover and investment of the enterprise in order for it to be registered as an Udyam:
- For Microenterprise enterprises with Investment up to Rs 1 crore with a turnover of less than Rs 5 crores will now be called small enterprise units.
- For Small enterprises with Investment up to Rs 10 crore with a turnover of less than Rs 50 crores will now be called small enterprise units.
- Medium enterprises with an Investment of Rs 50 crore and with a turnover of less than Rs 250 crores will be now called Medium Units.
For any further inquiries regarding Udyam registration and its process, feel free to contact us.