Udyam registration is also known as MSME registration and it was introduced to maximise benefits for micro, small and medium enterprises (MSMEs) in India. Udyam registration is a recognition certificate with a unique identification number which is provided to small, medium enterprises.
Udyam or MSME registration doubles up as a business licence and carries a lot of other benefits than just being a mandatory requirement for MSMEs to avail business loans.
The Udyam registration process is completely digital, paperless and based completely on self-declaration.
Aadhaar number was usually enough for registration, however, from 01-04-21 PAN and GST numbers have also become mandatory.
There are several benefits of having a Udyam Registration. This has now become a mandatory document for MSMEs for acquiring a business loan, costs benefits for various government tenders and schemes, during licence application processes, tax rebates and more.
Some benefits include:
- Helps in getting government tenders
- Lower interest rates while applying for business loans
- Different types of tax rebates
- Preference while applying for approvals, grants, licences, registrations, etc
- Various kinds of tariff and tax subsidies
- Reduction in cost while applying for patents or while setting up industries.
Udyog Aadhar was a long process, to make it easy and fast the Indian Government made some amendments. These amendments had a major impact as a large number of businesses came up to get the registration as it was online and no paperwork was required. For registering your business visit https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
The minimal required documents are uploaded and the registration certificate is sent to the owner’s email address.
Availing credit facilities or business loans has become a much simplified process via the Udyam Registration number. NBFCs like Kinara Capital are trying to bridge the gap for MSMEs in India to access formal credit and avail fast business loans without any property collateral. Kinara Capital digital process enables small business owners to check their eligibility in just 1 minute through the myKinara app. MSME entrepreneurs can avail a collateral-free business loan from ₹1 lakh - ₹30 lakhs with doorstep services in their preferred vernacular languages. With just Udyam registration and minimum documentation, an MSME business owner can go from decision to disbursement within 24-hours.
- Udyam registration
- MSME business loans
- MSME entrepreneurs
- Business loan
- Small business owners
- Udyog Aadhar