Micro, small, and medium enterprises (MSMEs) play a very crucial role in India's economic growth, employment generation, and industrial development, as they also work as a small sector, due to which employment generation can also take place in rural areas. To support this sector, the Government of India has introduced many benefits, incentives, and protections under the Micro, Small, and Medium Enterprises Development Act 2006. Therefore, to avail themselves of all these benefits, MSMEs must register themselves under the MSME Act through Udyam Registration.

 

Through this article, we will understand why MSME registration is essential, what advantages MSME can get from it, and how a business can complete its MSME online registration process.

 

 

Understand MSME Registration and Importance:

The MSME Act was established to provide structural support to small businesses and ensure their financial and operational stability. Under this framework, businesses can obtain their MSME Certificate through Udyam Registration, which was earlier known as Udyog Aadhaar Registration or UAM Number (Udyog Aadhaar Memorandum). Through this Act, MSMEs can further boost their business at regional as well as global levels.

 

As MSMEs can understand, getting Udyam Registration is not an option for them but is very important for them if they want to avail themselves of the benefits of many government schemes for their business, financial assistance, tax exemptions, or any other legal protection, which is tied to Udyam Registration. Without registration, MSMEs cannot claim any benefits, as many benefits are under the MSME Act. Therefore, businesses must complete the Udyam Registration process.

 

Benefits of MSME Registration:

 

1. Protection in case of payment delay

 

One of the most significant challenges MSMEs face almost all the time is payment delays from their buyers, especially large corporations. Hence, the MSME Act mandates:

 

• Registered MSMEs should be paid within 45 days of invoice submission.

 

• If any payment is delayed, buyers must pay compound interest, which is three times the bank rate, as notified by RBI.

 

This provision safeguards the financial stability of small businesses that they face due to unpaid invoices.

 

2. Access to subsidies and incentives provided by the government

After Udyam registration, many government subsidies are unlocked, such as

• Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgradation
• Loans are also available at subsidized rates under the Mudra Scheme and the Stand Up India Initiative
• Concessions are available on electricity bills and patent registration fees

 

3. Priority sector lending or lower interest rates or financial institutions

As we know, PSL schemes have been made by RBI in which banks have to keep a certain percentage of the loan amount for certain categories; MSMEs also get benefits. Banks and NBFCs give priority to MSMEs under the priority sector lending category, and they get loans at lower interest rates for their business. This ensures easy access to working capital, which is essential for business growth.

 

4. Easy access to licenses and registrations

 

For MSMEs who have registered themselves under Udyam Registration, the process of obtaining business licenses, environmental clearance, or government tenders becomes very simple. Some tenders are reserved only for MSMEs, which further enhances their market opportunities.

 

5. Direct tax exemptions

 

MSMEs registered under the Income Tax Act can claim direct tax exemptions and also improve their profitability.

 

6. Reduction in trademark and patent fees

Registered MSMEs can avail up to 50% concession in trademark and patent registration fees. Due to this, they can promote more innovation, and their brand gets protection.

 

7. Industry promotion and export assistance

To boost the export more, the Government of India provides market development assistance and gives financial aid to MSMEs who participate in international trade fairs and also get subsidies.

 

8. MSME Samadhan is for legal dispute resolution

Through the MSME Samadhan portal, the registered MSMEs can resolve their payment disputes quickly, and their litigation cost is also reduced, and any increase in their business due to legal disputes is removed.

 

 

Why is MSME registration mandatory to avail of these benefits?

 

As the government provides benefits in a very wide range, only those MSMEs that have their valid Udyam registration done can claim it. Here is why registration is mandatory

 

• For legal recognition: The MSME registration act checks whether the identity proof of the business is correct or not, and with its help, it becomes even easier to get the support of the government.

 

• Automatic eligibility: There are various schemes by the government for Udyam-registered MSMEs. If an MSME does not get the Udyam certificate by not getting its business registered, then it is not eligible for loan subsidy incentives, and if it gets the Udyam registration done, then it automatically becomes eligible for all the schemes.

 

• Protection under MSME Act: Only registered MSMEs are entitled to the right to copayment protection or protection under MSME Samthe Adhan Scheme

 

• Easy to get bank approval: Banks are required to approve collector-free loans under CGTMSC, the scheme

For this, the Udyam registration certificate document is required.

 

• GST and Tax Benefits: Many tax incentives, exemptions in GST, or subsidised tax rates apply only to registered MSMEs.

 

 

How to register MSMEs through the Udyam Registration Process?

The MSME registration process is a very simple online process that can be completed through the Udyam Registration Portal. Here is a step-by-step guide on how to register for Udyam Registration

Step 1: Go to the official website.  

• First, go to Udyam Aadhar Registration, the most reliable website.  
• After that, navigate to the new udyam registration section 

Step 2: Complete the form. 

The Udyam registration form will appear once you scroll down; complete it.  

• First and foremost, enter the applicant's name, email address, and mobile number. 
• Complete the business information.  
• Give a brief overview of your company, including its name, address, date of establishment, organizational structure, etc.
• Enter the information of your investment. 
• What is your yearly turnover and plant and machinery investment?  
• Enter the details of your document.  
• PAN number, GSTIN number, and Aadhaar card number.  
• Give your bank account information.  
• Give your accurate IFSC code, bank account number, and bank name.  
• Enter the total number of employees. 
•  Describe the proportion of males and women in your organisation.  
• You can include more information about your company if you'd like. 

Step 3: Put the verification code in.  

• The captcha box will display the verification code; make sure to enter it accurately.

 

Step 4: After checking the declaration and terms & conditions, click on submit application.  

 

Following your application, you will be sent to our payment channel, where you can complete your Udyam registration quickly and easily by paying a small fee. OTP is provided in the given mobile number or email ID. Verify it for authentication 

Within one to two business days, you will get an email with your Udyam registration number.

 

For those who have got their new registration done, the Udyam certificate download PDF option is available in the Udyam registration portal.

 

And those who are already registered in Udyog Aadhar will first have to update their Udyam Registration, and after that, they can download their Udyam Aadhar Certificate from the portal.

 

To know more about how to download the Udyam registration certificate in brief.

Read this:  How to Download & Print Udyam Registration Certificate

 

उद्यम/एमएसएमई सर्टिफिकेट ऑनलाइन कैसे डाउनलोड करें

 

 

Conclusion:

 

Registering under the MSME Act is not just an option, but it is also mandatory, due to which numerous government incentives, legal protections, and financial aids are available, and due to this, the growth of MSME can happen in the right direction, and it also helps in the growth of India's economy, as our Finance Minister Nirmala Sitaraman has also said that MSME is the second engine of economic growth. So whether you want to register for an MSME certificate or download the Udyam registration certificate or convert the UdyogAadhaar certificate to Udyam registration, first get your business registered online for MSME and avail all the benefits.

 

If MSMEs ignore it, it can lead to financial losses and legal disputes, and you can miss out on any opportunity. The priority of every MSME should be to get themselves registered for Udyam registration, use government support, and ensure the success of their business.

 

For Udyam certificate registration, to download a certificate, or to get any information related to it, you can visit udyam registration portal or contact us.