Micro, Small, and Medium enterprises (MSMEs) are considered the backbone of the Indian economy because this sector generates employment on a large scale and also helps in maintaining equilibrium in rural and urban areas. Keeping that in mind, the government has brought Udyam Registration to formally recognize and promote the MSME sector.
It not only provides a legal identity but also opens the gateway to exploring a host of government benefits, schemes, and sustainability opportunities for businesses.
In this blog, we will understand about Udyam Registration, how it supports the MSME sector in increasing their growth and sustainability and how this process can be completed online.
What is Udyam Registration?
Udyam Registration was launched in 2020 by the Government of India, and its objective is to bring all the MSME sectors in India under a formal registration process and provide them with an identity number, which is the Udyam registration number.
It was earlier known as the Udyog Aadhaar Registration, but now it has been replaced by the Udyam Registration Portal.
This registration is completely paperless and digital. The registered enterprises are assigned the URN and the Udyam Certificate, which act as the official identity of the respective enterprises.
Udyam registration Act as Strong Foundation to supports MSMEs Growth and Sustainability
Formal Identity to Increase Trust
Obtaining Udyam Registration will provide an MSME with a government-recognized identity.
This will afford not only more confidence to customers and investors but also recognition as members of the formal economy.
When the business gets registered, it develops more trust in banks, suppliers, and government departments.
Easy access to government schemes and subsidies
The major advantage of Udyam Registration is easy access to various schemes initiated by the Central and State Governments. To name a few:
- Prime Minister’s Employment Generation Programme (PMEGP)
- Credit Guarantee Scheme (CGTMSE)
- Interest Subsidy or Concession
- Technological Upgradation and Training Schemes
These schemes help small businesses develop and increase their level of technology and capacity for long-term sustainability.
Ease of Availing Loan/Financial Assistance
Among the major problems faced by MSMEs is the issue of a lack of capital. Udyam registration does help, however, to make the banks and other financial institutions consider the business more trustworthy.
This will entail the following benefits:
- Collateral-free loan achievement without collateral
- Reduced interest rates
- Faster loan approval process
Financial assistance enables MSMEs to expand their business, purchase relevant equipment, and even acquire new technologies.
Access to Government Tenders and the GeM Platform
Udyam-registered businesses can also participate in the Government e-Marketplace and other tenders.
Only registered enterprises are allowed to sell their products or services on the GeM platform, therefore allowing small businesses to trade directly with government departments.
This would ensure regular orders and better profits with business stability.
Enhancing Competitiveness and Market Access
The registration of Udyam acts as an advantage for small businesses in today’s competitive environment, when big companies are growing and dominating.
Tax incentives are given to registered MSMEs.
Encourage them to participate in different international trade fairs and exhibitions.
Special support from the government also exists for MSME exporters.
All this not only makes businesses sustainable but also opens up further avenues for expansion.
Legal Protection and Transparency
Udyam Registration gives a valid legal entity and protection to the business.
In case of any delay in making such a payment, the MSME can file a complaint under the MSME Development Act 2006.
- They are protected.
- This would ensure their legal representation and compensation on time.
This creates trust and transparency, hence allowing corporations to work on the prime need for sustainability.
Data and Citizen Involvement in Policy Making
This will give the government a centralized data system of MSMEs upon registration on the Udyam portal.
This helps the government understand what type of industries are more active in which area and which one needs more support.
Data obtained then forms the basis of policy-making and new schemes.
Thus, the Udyam registration contributes to the whole MSME sector and not just the business itself.
Ease of Process and Digital Convenience
Udyam registration is an entirely online process.
It requires only an Aadhaar number and basic information about the business. None of the documents needs to be sent in hard copy. As a result of this simplified process, more and more MSMEs are registering themselves, thereby strengthening the formal economy of the country.
Business Expansion Stability
Support and guidance by the government for an MSME continues after registration. Business forecasting can help to enable long-term planning, risk management, and sustainable growth. Beyond allowing a business to commence its operations, the Udyam registration forms a very strong foundation for its sustainable development.
Generation of Employment and Social Stability
Due to the Udyam registration certificate, more businesses come into the formal sector as their data gets registered on the government portal, hence creating new employment opportunities. When MSMEs operate stably, even the local community gains economic security. This process propels not only businesses but also all of society toward stability and prosperity.
Steps to Register for Udyam Registration
The procedure involving Udyam Registration is not at all complex and can simply be carried out by any entrepreneur through an online platform. By following the given steps, MSME owners can easily get their business registered.
- First of all, go to the authentic Udyam Registration portal.
- Once the website opens, click on the New Udyam Registration option.
- Then, the Udyam Registration form opens on your screen.
- You will be asked to provide information in the form regarding the applicant’s name, mobile number, etc.
- Fill in all the information correctly in the form.
- After the form has been correctly filled in, enter your verification code.
- After entering the verification code, recheck all the information you have filled in the form and then click on apply.
- After clicking on apply, an OTP will appear in your message.
- Enter that OTP, and after the verification of the entire process, you will get the Udyam Registration Certificate and Udyam Registration Number in your email.
- You can also download your Udyam Registration Certificate from the portal.
You Can Apply for Update Udyam Certificate Through Udyam Portal
Conclusion
Udyam Registration Certificate is not just a document for MSMEs, but it is a way to take their business towards growth and sustainability. It certainly gives recognition, financial support, and legal protection to businesses, besides availing benefits from government schemes. Udyam registration is the most effective means of connecting small businesses to the formal economy in today’s times, when every industry is becoming digital and competitive. If you are running an MSME and have not done your Udyam registration yet, then it is the most important step toward long-term success and sustainability of your business. Get your Udyam registration today and lead your business toward a new identity, a new direction, and stable growth.
