Benefits of MSME Udyam Registration
Assurance of timely payment
Most often, small businesses experience delayed payment by large businesses. But if a company does not pay you on time after obtaining Udyam registration, you can complain to the MSME Facilitation Council.
Legally, large businesses need to pay MSMEs within 45 days.
In case of delay, there also needs to be paid interest on the outstanding amount.
Legal protection and rights
Udyam registration gives legal protection to your business. If a company violates the agreement or cheats you, you can safeguard your rights under the MSME Act.
Bank loan security
It is usually costly and tough to obtain a loan without Udyam registration. But registered MSMEs receive collateral-free loans and low-interest loans. This financial protection saves your business during emergencies.
Government scheme benefits
Once you register with MSME Udyam, your business is eligible for numerous government schemes, like:
Credit guarantee scheme
Technical upgrade subsidy
Marketing assistance
Export promotion schemes
All these facilities give a strong shield to your business.
How does Udyam registration safeguard your business?
Proof of identity
The Udyam certificate is an authentic proof of identity for your business. With this, you can readily establish your status in any government or non-government transaction.
Protection from fraud
If any business commits fraud on MSMEs, it is simple to complain to the government. Udyam registration is strong evidence for you.
Emergency help
During crisis situations such as COVID-19, the government gave special relief packages and simple loans to registered MSMEs. In other words, the government is with you during hard times.
Business credibility
Clients and customers also believe in registered companies. It raises both the reputation and safety of your company.
How to do MSME Udyam Registration? (Step-by-Step)
The process of Udyam registration is quite simple.
Go to the official website of Udyam Registration.
Fill out the Udyam registration form.
Provide details related to the business, such as—
Business name
PAN card number
Bank account number
Number of employees
Information on investment and turnover
Submit the form.
Upon successful registration, you will receive the Udyam Registration Number (URN) and certificate through email.
Disadvantages of not obtaining Udyam registration
If you fail to obtain the MSME Udyam registration, then:
You will miss out on the advantage of government schemes and subsidies.
There will be no legal assurance of prompt payment.
It will be cumbersome and costly to obtain a bank loan.
Large clients will be hesitant to work with you because you will not possess an official identity.
You Can Apply for Print Udyam Certificate Through Udyam Portal