We will address the most frequently asked query—udyam registration for what purpose —in this article. Understand the functions of the udyam certificate in MSME industries before submitting an online application for your business registration in the Ministry of MSME.
Udyam registration certificate is for indian businesses who wants to register under Ministry of MSME, primarily used as business licences in India. Your business will qualify as an MSME and be eligible for several government programmes, services, benefits, and subsidies once you have an udyam registration certificate. Based on turnover and investment your business will be classified accordingly as Micro, Small and medium enterprise.
The udyam registration certificate for micro, small, and medium-sized businesses in India is used for some of the purposes listed below; continue reading.
Udyam Registration for What Purpose?
A unregistered MSME’s (Micro, Small and medium enterprise) is not eligible government schemes and programmes, benefits, and subsidies. The top 10 purpose of an MSME Udyam registration certificate for Indian micro, small, and medium-sized businesses are listed below.
1. With Udyam Get loans with no collateral
Bank loans are accessible without security or guarantee for registered MSMEs. Some MSMEs and small business loans are exempt from the requirement for collateral, but not all of them are MSMEs.
For addition, the Credit Guarantee Trust Fund Scheme provides quick bank loans without collateral if the requirements are met.
Learn more about – Udyam Scheme: Every MSME Should know
2. 50% off the price of registering a patent with Udyam Certification
Registered MSMEs are eligible for up to a 50% incentive for the patent registration of their business’s idea and procedure. A certificate of registered MSME udyam registration is necessary in order to use this government programme.
Do you know the advantages of the Udyam Registration Certificate? If not, you should to take use of them as a business owner. If you’re not familiar with the numerous benefits, take a look at the 25 MSME Udyam Registration Benefits for Small and Medium Enterprises in India.
3. Can Overdraft Interest Fees Be Exempted
Registered MSMEs can get a 1% discount on the interest they pay at any bank or financial institution if they have an overdraft.
4. Can aid in the eligibility for industrial promotion subsidies
Registered MSMEs may be eligible to obtain industrial promotion subsidies from the government under various plans and programmes for promoting their business internationally.
This might entail getting paid to participate in marketing initiatives, trade exhibitions, and other activities.
If you have a doubt about what is udyog aadhar and udyam, then check this article — Difference Between Udyog Aadhaar And Udyam
5. You can get protection against delayed payments by presenting your Udyam Registration Certificate.
The government provides MSMEs the authority to charge compound interest on the outstanding balance each month when a registered MSME renders goods or services to another business and the payment isn’t completed within 45 days. Additionally, the required interest rate is three times the RBI-approved rate.
Only officially recognised MSMEs in India are qualified for this help with delayed payments.
6. Utilizing your MSME Udyam Aadhar Certificate, you can get your electricity bills subsidised.
Registered MSMEs are sometimes eligible for power bill refunds, especially in the case of manufacturing facilities.
7. Businesses that have registered with Udyam will receive a free ISO certification.
If a registered MSME receives ISO certification, the Indian government agrees to pay for all ISO registration costs.
Non-registered MSMEs are not eligible for this reimbursement.
8. Can be utilised for long-term tax advantages
The maximum 15-year extension of the minimum alternate tax (MAT) credit is available only to registered MSMEs, as opposed to the usual 10-year extension available to all other businesses.
9. Eligible To Submit A Tender To The Indian Government
Registered MSMEs can benefit from additional help and an advantage in winning government contracts because the Udyam Registration Portal is directly connected to a variety of government e-marketplaces (GEM) and State Government’s websites for issuing tenders.
The advantage of registered MSMEs over unregistered MSMEs in this regard is substantial.
10. Can be used as a fee for a one-time nonpayment settlement.
If a registered MSME is unable to pay any outstanding invoices, the government offers a one-time settlement fee to cover all outstanding debts.
Still uncertain about the advantages of the MSME udyam registration certificate process? Not to worry!
Consult with leading business professionals and consultants of government programmes for MSMEs in India through this platform to quickly and easily get answers to any of your questions.
How to Download UDYAM registration certificate?
You can apply for your Udyam registration certificate and download using this quick & simple online process while sitting in your office. To apply for your udyam certificate online easily, just follow these 6 simple procedures.
Step 1: Visit the udyam registration portal’s official website.
Step 2: Choose the Udyam Registration Certificate Tab button.
Step 3: To apply for your certificates, fill out the Udyam registration form with your Aaadhar number, name, mobile number, and email address among other details.
Step 4: Additionally, choose the email address and registered mobile number where you wish to get your OTP (one time password). Your registered email address or mobile number will receive the OTP.
Step 5: Udyam Representatives will consider your request and decide whether to approve your application.
Step 6: Your registered udyam certificate will be delivered to your registered email address following the verification.
Note: You must share the OTP with representatives after it has been verified in order to continue with the online verification process.
As a private udyam advisory firm, we assist all newly established businesses in India, including micro, small, and medium-sized firms (MSME). As a result, we are aware of the time needed to complete the necessary steps and get an online udyam registration certificate.
Please don’t hesitate to contact our Udyam Helpline staff if you need any additional information about MSME, Udyog Aadhar, or Udyam Registration Certificate. Enjoy your day ahead!