Udyam Registration Certificate and the role it plays in business growth

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The Government of India keeps taking many new initiatives for micro, small, and medium enterprises so that their business can get further boost and they can expand their business at the right level. One of those initiatives is Udyam Registration, which has been made very simple and digital by the Government of India. After getting Udyam Registration, MSMEs receive Udyam Certificate, due to which their business gets benefits in government schemes, tax benefits, train facilities, and many more grants reach them.

From this article, we will explore the importance of the Udyam Registration Certificate, how to get it, and what role it plays in business growth.

What does an Udyam Registration Certificate mean? 

The Government of India grants Micro, Small, and Medium-Sized Businesses an Udyam Registration Certificate, which gives them a distinct identity. Previously known as Udyog Aadhaar, this is now known as Udyam Registration, which has been made simpler while also offering registered MSMEs additional advantages.

Main benefits after getting Udyam registration:

Getting priority in various schemes of the government:

The MSMEs who have registered their business through Udyam registration get the benefit of many government schemes; apart from this, they also get grants.

Facility in getting loan from the bank:

Registered MSMEs get loans at low interest rates, due to which they can invest well in their business.

Getting exemption in funds and taxes:

The business gets exemption in GST, gets a discount in electricity bill and other benefits.

Getting government tenders and licenses easily:

Registered MSMEs businesses are able to participate in various government tenders and they are also given priority first. Also, the process of getting their license also becomes easy.

Role of Udyam Registration Certificate in Business Growth

MSME Businesses that have got their Udyam Registration done get many benefits, due to which they can invest in their business and grow it even more. Some of these are mentioned here:

Getting the benefit of government schemes and grants

The government has made many schemes for the upliftment of MSMEs, which only registered MSMEs can take advantage of, which include:

  • With the help of Pradhan Mantri Mudra Yojana, MSMEs can easily get loans
  • With the help of the Credit Guarantee Fund Transfer Scheme, they get loans without any guarantee
  • The PMEGP scheme provides grant arrangements for new industries

Getting easy and cheap loans

Registered MSMEs can get loans from banks and NBFC institutions at low interest rates. Apart from this, there are many such schemes due to which they can get loans without giving any guarantee, which is very helpful for a small business. Due to the Udyam Registration Certificate, MSME owners can easily raise funds for their business.

Customer trust and brand value enhanced

Udyam Certificate proves to be the authenticity of a MSMEs, due to which the trust of customers, investors and business partners increases and entrepreneurs are able to prove their business in an authentic form.

Opportunities are also available in export and government tenders

To support MSMEs, the Government of India brings many of its tenders exclusively for MSMEs, the benefits of which are available only to registered MSMEs. At the same time, the government has helped MSMEs boost their export sector even more. MSMEs who keep their business export-oriented can also get the benefit of subsidies and many government schemes, due to which registered MSMEs can remain competitive in the international market.

To get the benefit of all these things, first of all, MSMEs have to complete their Udyam registration. This article also explains how you can complete Udyam registration and get a certificate.

Process of filling Udyam Registration Form

  • First of all, go to the authentic Udyam Registration Portal
  • After opening the website, the application form will be visible on your screen. Whatever details are asked from you, like your personal information related to business, Aadhaar and PAN related, or bank account related, please fill them in correctly.
  • After that, the verification code will be on your screen; enter it in the box given below.
  • Tick mark in the box of Terms and Conditions and Declaration; this will prove that your information is correct and you have voluntarily given your information.
  • Lastly, click on Submit Application.

After paying some nominal charge, you will receive your Udyam Registration Number in your registered email within 24 hours.

What is the impact on business without a Udyam Registration Certificate?

If an MSME is deprived of getting their business registered, then they have to face all these things like

  • They are deprived of many government schemes and grants that are meant for registered MSMEs.
  • They may have to take loans at high interest rates.
  • They are not able to participate in government tenders, and along with that, the trust of customers and brand value also decreases.
  • There is a lot of uncertainty in their business.

Conclusion

The Udyam Registration Certificate is a very important document for the business and also for its success. Due to this, small and medium scale businesses get financial help, they also get the benefits of government schemes and apart from this, they are also able to remain competitive in the market. If you fall under the criteria of MSME classification and your business is related to anyone or you are planning to start a new business, then first of all get your business registered and get whatever benefits it has. This will enable your business to run smoothly and be successful in this competitive era.