India is a developing country, and its economy is growing very rapidly. Small manufacturing plays a crucial role in the economy's growth as it contributes to industrial development and employment generation. However, they often face challenges such as limited access to finance, lack of government support, and high regulatory complexities. To address this issue, the Government of India introduced the Udyam Registration Certificate, which is a formal recognition for Micro, Small, and Medium Enterprises. This certificate provides various benefits to the Udyam-registered small manufacturing business, which helps in the further growth and sustainability of small manufacturing businesses.
What is the meaning of Udyam Registration?
Udyam Registration is an online process that comes under the Ministry of Micro, Small, and Medium Enterprises. Before this process, there used to be the Udyam Aadhar System, but it was replaced by Udyam Registration, and the procedure was simplified even more, due to which small businesses get even better accessibility. If any micro, small, and medium enterprises are engaged in manufacturing and service units, then they can register inside the Udyam Registration Portal and can take advantage of government benefits.
Benefits of Udyam Registration for Small Manufacturers
Getting financial assistance and subsidy
Small manufacturers often face financial problems in their business because they have limited working capital, and loans are also available at high interest rates. Udyam Registration helps to overcome this problem. In this way,
A collateral-free fund available under government schemes is the Credit Guarantee Fund Trust for Micro and Small Enterprises.
Interest subsidy is available on the loan, due to which the financial burden of their business can be reduced.
Some loan quotas are reserved for MSMEs under priority sector lending.
Government tender and procurement benefits
Some government standards are exclusively for registered MSMEs, and some government projects often want to procure from MSMEs. With the help of the Udyam Registration Certificate, small manufacturers get:
Exemption from making earnest money deposit when bidding for tenders.
Preference is given in government contracts under the Public Procurement Policy.
Benefits are received in government tenders reserved for MSMEs, due to which business opportunities increase even more.
Tax benefits
Small manufacturers get a lot of tax benefits after getting registered, such as
Reduced GST rates for certain manufacturing sectors.
Exemptions from certain direct taxes in the initial years.
Easy access to licenses and approvals
Registered MSMEs can easily get regulatory approvals and business licenses as the government gives priority to Udyam-registered manufacturers when processing applications for industrial license, patents and trademarks.
Protection against delayed payments
Receiving delayed payments is often the biggest challenge for small manufacturers, which causes problems in their cash flow. Udyam Registration provides protection:
Small manufacturers can complain about delayed payments through the MSME Samadhan Portal.
Ensures that payments are made within 45 days as per the MSME Development Act 2006.
Provides legal assistance and helps in case of disputes.
As mentioned, there are so many benefits for Udyam-registered small manufacturers and MSMEs who have not registered their business can easily do so. In this article, steps are given on how to apply for Udyam registration.
How to apply for Udyam registration
Applying for Udyam registration is a very simple online process. Here are some steps
1. Visit the official portal of Udyam registration
2. After visiting the website, fill out the Udyam registration form
3. Fill in your personal or basic data in the form, like applicant's name, mobile numbers, etc.
4. Fill in information about your business, such as the name, address, and type of organization of your business, in the form.
5. Then, give your Aadhaar number, PAN number, and bank details in the form.
6. If any other information is asked, then fill in the form.
7. Fill in the verification code in the form.
8. Tick the box of Terms and Conditions and Declaration.
9. Verify and submit the application.
After paying some nominal charges, your enterprise will be registered. The registration process will be completed, and the verification message will be sent to your registered email ID. You will receive the Udyam registration number on your registered email ID within 24 hours.
You can also download your Udyam registration certificate by visiting the Print Udyam Certificate section.
Apply for Update Udyam Certificate
Conclusion
Udyam registration is not just a compliance requirement for a small manufacturer, it is a way to make his business financially stable, grow, and get government support. Through Udyam registration, loans are available at cheap rates, many tax benefits are available, and government tenders are also available, so it has proved to be a straight path to success. If you are a small manufacturer and come under the classification of MSME, then get Udyam registration done as soon as possible and take your business to greater heights even faster.
