To understand the benefits of Udyam Registration, first, we will have to understand the meaning of Udyam Registration. Udyam Registration is the new and improved system launched by the Ministry of Micro, Small & Medium Enterprises to help facilitate MSME growth and provide the necessary support for all MSMEs in India. In order to streamline the process of providing all the required support to MSMEs throughout India and to eliminate the middlemen, the government has launched this system where every MSME can register their enterprise and apply to avail its various benefits granted from time to time by the Ministry of MSME.
Now what you know what exactly is Udyam Registration, lets understand what it is beneficial to get your Udyam Registration.
Udyam Registration can be used as an identity document for your Enterprise or Business. You can use it to open your bank account as well as apply for various other registrations under other government schemes.
Electronic & Life-time Validity
Udyam Registration is an entirely online process and hence the Udyam Registration Certificate is also an online document and hence no physical copy if required to be stored or presented anywhere. Also, there is no expiry to this document unless you voluntarily apply for cancellation, and hence no need to renew it anytime in the future.
Government e-Marketplace (GeM)
Udyam Registration opens the door for MSMEs to register themselves on the GeM where MSMEs can enlist themselves as a supplier for all Government Tenders and requirements.
The Ministry of MSME has started the MSME Samadhaan portal to assist MSMEs in recovering their bad debts from defaulters. Your Udyam Registration will give you access to this portal.
The ministry has launched the TReDS platform to help MSMEs avail the benefits of this closed network of MSMEs throughout India. This platform facilitated the trading of receivable invoices with other suppliers so that any kind of cash crunch can be adjusted and business is not disturbed.
Various Schemes by Ministry of MSME
The Ministry of MSME, from time to time introduces many schemes to facilitate the growth of the MSME sector in India. Udyam Registration is the only way which grants a direct access to these schemes. A few types of these schemes are Credit Guarantee Scheme, Protection against delayed payments, additional edge in Government Tenders, Public procurement policy, and so on.
Priority Sector Lending Eligibility
After obtaining Udyam Registration, the MSME automatically becomes eligible for priority sector lending from various Banks having signed MoU with the Ministry of MSME. These guidelines are issued by the RBI and according to the RBI, currently, the categories under private sector lending are:
- Micro, Small & Medium Enterprise
- Export Credit
- Social Infrastructure
- Renewable Energy
It can be clearly seen that the MSME sector falls in the list of priority sector lending. Further, it must be noted that only MSMEs engaged in the activities of manufacturing or production of goods are eligible for priority sector lending.
The Ministry of MSME is committed towards a steady growth of the MSME sector in India and hence apart from the ones stated above too many benefits are granted to the MSMEs through their Udyam Registration.
Now we come to the most important question of How do you get Udyam Registration?
The process is very simple. Just visit our website www.udyam-registration.co.in, complete the form and submit the same. Follow the next few steps and leave the rest to us. Our executives will contact you and help you get your registration.