What is Udyam Registration?
The Ministry of Micro, Small and Medium Enterprises (MSMEs) vide its publication of notification in Gazette of India dated 26th June, 2020 has specified the new form and procedure for filing the memorandum to be known as ‘UDYAM REGISTRATION’ with effect from 1st day of July, 2020.
Who is Eligible for Udyam Registration?
Any person who intends to establish a micro, small, medium enterprise may file online udyam registration.
|Type of Enterprises
|Manufacturing OR Services Sector, Both
||Investment upto ₹ 1 Cr AND Turnover upto ₹ 5 Cr
||Investment upto ₹ 10 Cr AND Turnover upto ₹ 50 Cr
||Investment upto ₹ 50 Cr AND Turnover upto ₹ 250 Cr
What are the Documents Required for Udyam Registration?
The Online Udyam Registration application process is based on self-declaration, and there is no further requirement to upload any documents, certificates, papers, or proofs.
The user will only need to provide their 12-digit Aadhaar Number, Pan Card and Bank Account details of Business for the registration process.
There is no need for physical documents or any soft copies. The overall process just needs details about your business.
Following are the benefits of obtaining Udyam Registration-
- The business owner can avail octroi and tax conession in states laws as applicable.
- Claim stamp duty and registration fees waiver.
- Exemption of 1% interest rate on Overdraft.
- Can avail subsidy from NSIC and credit ratings & Eligible for IPS subsidy.
- Reimbursement on the payment made for obtaining the ISO certificate.
- Reservation of products for exclusive manufacturing by MSME and SSI.
- Avail Excise Exemption Scheme.
- Avail exemption while applying for government tenders.
- Exemption under direct tax laws.
- Enjoy easy bank mortgages and Bank Business Loans
- Bank loans become cheaper as the interest rate is very low (Upto 1.5% lower than interest on regular loans
- Becomes easy to get licenses, approvals and registrations, irrespective of field of business as business registered under
- Udyam are given higher preference for government license and certification.
- Registered Udyams gets tariff subsidies and tax and capital subsidies
- Interest rate Subsidy on Bank loans
- Protection against delayed payments, against material/services supplied
- Ease of obtaining registrations, licenses, and approvals.
- MSME Registered entity gets eligible for CLCSS (credit linked capital subsidy scheme)
- Subsidy is available for Patent registration
- Industrial Promotion Subsidy (IPS) Subsidy Eligibility
- One can avail 100% Collateral Free loans from all banks
- Special consideration on International Trade fairs
- Bar Code Registration Subsidy
- Waiver in Security Deposit in Government Tenders and Departments
- Concession in Electricity bills