What are the Benefits of Udyam Registration in India?
Read on to learn about the various Udyam registration benefits in India for micro-small-medium enterprises.
Udyam Registration is a modern online alternative for Udyog Aadhaar registration for Indian small and medium enterprises. This latest Udyam registration for company and enterprise owners simplifies the process and receives an e-recognition certificate and a unique number. For the acquisition of micro small and medium business enterprises registered under the MSME Ministry.
The main objective of the Udyam Registration Government is to provide single-page registration, is less time-consuming, and simplify any enterprise's registration processes under Micro, Medium, and Small Enterprise (MSME). Any type of company, or organization, such as a Limited Liability Partnership (LLP) or a private limited company, can register with the registration portal of Udyam.
Through the Udyam Registration Portal - udyamregisteration.org/, you can file Udyam Registration online. A permanent URN and e-certificate identification number, respectively known as 'Udyam Registration Number' and 'Udyam Registration Certificate', will be issued once the registration has been completed.
The Ministry of MSMEs provides different advantages for the growth of MSMEs, and companies with Udyam registrations can also benefit from these advantages. Some of the benefits include the concession of energy bills, lower bank interest rates, applying for IPS subsidies, qualification to attend internal fairs, discounts, exemptions under Direct Tax Laws, easy licensing and certification, easier checking of licenses, and insurance against payment delays.
Udyam Registration Benefits
Some of the key advantages of India's Udyam registration certificate are discussed below:
- Loans without collaterals
Through this Udyam certificate, the Government of India has introduced numerous schemes and reforms to upgrade small-scale enterprises, allowing credit without collateral to be used. This is the best value of Udyam for small business owners, as it provides a collateral-free loan approved under the name of The Credit Guarantee Trust Fund Scheme by the Government of India, the Small Industries Development Bank of India, and the Ministry of Micro, Small, and Medium Enterprises.
- Subsidy on Patent Registration & Industrial Promotion
Small and medium-sized enterprises registered under the Department of MSME Micro, Small and Medium Enterprises Act, 2006, receive a strong subsidy for patent registration and industrial promotion.
- Overdraft facility along with Interest Rate Exemption
Enterprises registered as Udyam under the MSME Ministry are liable as part of the Credit Guarantee Trust Fund Scheme to obtain an overdraft benefit.
Note: This can differ from one bank to another.
- ISO Certification Charges Reimbursement
A small-medium enterprise registered by Udyam can demand the reimbursement costs that have been expended on ISO certification.
- Concession on Electricity
Small businesses registered under the new Udyam MSME Registration Portal can obtain an electricity bill concession.
- Helps in Getting Government Tenders
Micro, small, and medium-sized enterprise owners may take part in the auction of government tenders. When applying for government tenders, they can easily access exemptions.
- Becomes Easy to Get Licenses, Approvals, and Registrations
Company owners are eligible to apply for other official licenses, permits, and registration in India with this new Udyam registration certificate.
- Get exemption under Direct Tax Laws
In the reduction or elimination of a liability, the Government assists registered Udyam corporation. Only a subset of products can be subject to full exemption from taxes, discounted rates, or taxation.
- Take Part in International fairs
The Government of India encourages and authorizes Udyam-registered start-ups, entrepreneurs, and established small-medium enterprises to participate in international trade fairs, to showcase and promote their goods and services.
- Calculation of Investment in Plant and Machinery or Equipment
Investment in plants and machinery or facilities shall be determined in accordance with the Income Tax Return (ITR) submitted in accordance with the Income Tax Act 1961 for the preceding years.
In the case of a new undertaking, where no previous ITR Income Tax Rules are valid, the expenditure shall be dependent on the self-declaration of the undertaking promoter and such relaxation shall expire after 31 March of the financial year in which the undertaking submits its first ITR (Income Tax Rules).
The definition of a company's plant and machinery or equipment shall be the same as that given to the plant and machinery in the 1962 Income Tax Laws, as provided for in the 1961 Income Tax Act, and shall include all tangible assets (other than land and buildings, furniture and fittings).
In the case of a new undertaking without an ITR, the expense of the procurement (invoice) of a plant and machinery or equipment, whether bought first-hand or second-hand, shall be taken into account on a self-disclosure basis, excluding goods and services tax (GST).
The cost of those goods referred to in Section 7 of Explanation I to Subsection (1) of the Act shall be exempted from the measurement of the overall cost of the plant and machinery.
- Calculation of Turnover
For classification purposes, exports of products or services, or both are excluded when measuring the turnover of any company, whether micro, small, or medium-sized.
Information on the revenue and export turnover of an enterprise is related to the Income Tax Act or the CGST Act and to the GSTIN.
The turnover-related estimates of those undertakings which do not have a PAN shall be considered for a period up to 31 March 2021 on the basis of self-declaration and, thereafter the PAN and the GSTIN shall be required.
Udyam Registration Process
The Registration process for Udyam is quick and easy to follow.
Step 1: Access the website of the Udyam Registration.
Step 2: Fill out all Udyam registration Online Forms. Be sure all of the details are entered correctly.
Step 3: Make the Udyam Application payments online.
Step 4: Your Udyam online application will be processed by one of the Registration Executives.
Step 5: Obtain the Udyam certificate on your registered email address within 1-2 hours.
Udyam Registration for Existing Enterprises
There are also some guidelines for the registration of current enterprises. All these are listed below.
On or after 1 July 2020, all existing enterprises registered under EM-Part-II or UAM will once again file on the Udyam Registration Portal.
In accordance with this notice, all undertakings registered before 30 June 2020 shall be reclassified.
Current undertakings registered before 30 June 2020 are valid only until 31 March 2021.
Eligibility for Udyam Registration
According to the Notice of Classification of Enterprises as Micro, Small, and Medium Enterprises, the distinction between enterprises engaged in manufacturing and services was eliminated by rendering the amount of investment and the annual turnover of enterprises engaged in both sectors comparable.
|Manufacturing & Services Sector, Both
|Investment less than Rs. 1 crore Turnover less than Rs. 5 crore
|Investment less than Rs. 10 crore Turnover up to Rs. 50 crore
|Investments less than Rs. 50 crore turnover up to Rs. 250 crore
As per the central government notification dated 26.06.2020, all existing small and medium-scale enterprises and companies must convert to new Udyam immediately.
Just register here for udyam registration. Every business unit registered previously under MSME or Udyog Aadhaar or SSI shall be treated as a valid MSME up to 31st March 2021 only.
Therefore, all the existing enterprises must convert to Udyam registered company as per the notification on or before 31st Mar 2021 to avail of latest the Udyam Benefits.
If you have any queries or doubts regarding Udyam, talk to the Udyam registration expert. You can just fill out the Udyam registration form at @https://udyamregisteration.org/, and our team will get in touch with you.
FAQ on Udyam Registration
- How can I apply for Udyam registration?
Any type of business can apply for Udyam registration to get registered.
- Is an Aadhaar number mandatory for online MSME registration?
Yes, For Udyam registration, the Aadhaar card is mandatory.
- Can Udyam registered borrowers get collateral-free loans from financial institutions?
Yes, Udyam registered borrowers get collateral-free loans from financial institutions.
- Do I get a hard copy or physical copy of the Udyam registration certificate?
The government has initiated paperless work, so no physical copy is issued
- Can I change my name after updating?
No, you can’t change your name once you have completed the registration process.
- Can I change my bank account details?
Yes, you can definitely edit & update your bank account details. Click this link to proceed https://udyamregisteration.org/update-udyam-certificate.php