MSMEs are the backbone of the Indian economy. Through Udyam Registration, the government has given a new identity to these small businesses. It is not a paperwork procedure, but it has emerged as a strong growth tool for small businesses.
Udyam Registration: An Overview
In the year 2020, the Government of India replaced the old Udyam Aadhaar system and introduced Udyam Registration. It is basically an online process by which any small or medium-sized business owner can register their businesses. The most considerable advantage is that it can be done with ease within a few minutes while sitting at home.
Whereas previously, the business units used to have to run to offices, now everything is online. One can get his or her Udyam Certificate by providing some basic information along with an Aadhaar card and a PAN card.
Importance of the MSME Sector
There are over 60 million small and medium-sized businesses in India. They contribute approximately 30 percent to the country’s GDP. Most importantly, they employ around 110 million people. That means every third Indian is connected directly or indirectly with the MSME sector.
Everywhere, from the village to the city, small industries are in operation. Some run cloth shops, others put up small factories, some operate eateries, and others make handicrafts. This is the diversity that provides strength to the Indian economy.
Benefits of the Udyam Registration
An entrepreneur enjoys several benefits after obtaining Udyam registration. First and foremost is the easy availability of bank loans. Banks grant loans to registered concerns at lower interest rates under various government schemes. It is a must for banks to give loans to MSMEs under priority sector lending.
It also helps reduce the electricity bills. Many states provide subsidies for electricity for registered industries. Tax exemption is also available. The fees related to patent and trademark registration are also reduced.
The opportunities to participate in government tenders also increase. Most governments give priority to MSMEs in many of their procurements; sometimes, even some tenders are reserved only for small enterprises.
Udyam Registration Act as a Backbone of the MSMEs Ecosystem
Through Udyam registration, MSMEs get priority in several schemes and benefits like:
Benefits of the Credit Guarantee Scheme
The government has established the CGTMSE. It is a trust fund and works as a guarantee for small businesses. Even if an entrepreneur does not have land or property to pledge, they can get a loan. Registration of the enterprise is required to avail of this scheme.
This would be particularly useful to young people who have great ideas, want to start something new, and have little or no capital. They can realize their dreams even without any assets.
Technology and Skill Development
Government training programs can be joined by entrepreneurs after the enterprise registration. Skill development workshops are organized periodically by the Ministry of MSME on the use of new technologies, marketing methods, and business management.
There are also subsidies available for new machinery purchases. The government desires the small enterprises to adopt modern technology and increase their quality production. Schemes are in the pipeline to achieve this objective.
Special Features for Women Entrepreneurs
The Government of India gives special incentives to women to enter business. Additional interest rebates on loans are given to women entrepreneurs, and they get priority in many schemes.
This Udyam Registration will help them become economically independent by allowing them to register their businesses from the comfort of their homes. Even the women’s self-help groups in villages are now registering their businesses.
Changes in Rural Areas
Similarly, artisans and craftspeople residing in villages have also initiated the process of registering businesses. Earlier, they depended on middlemen. Now, they can reach directly to the market and sell their products on government portals.
Those engaged in handicrafts, agro-based industries, and food processing have benefited a lot from this. They are now receiving the true value for their work. They are also receiving the benefits of government schemes directly.
In Connecting with Digital India
It is a part of the Digital India mission, so it is completely online. Since it is an online procedure, there is no scope for corruption. No brokers or agents are required in this regard.
The government has data about all the registered enterprises, making policy-making rather easy. Plans could be designed to meet needs, and problems could be solved in an instant.
Towards an Atma Nirbhar Bharat
The Prime Minister gave the slogan of a self-reliant India, in which a major role was given to small and medium industries. Enterprise registration is a concrete step in that direction. When small businesses are strong, the country will also be strong.
It is also important to promote the “Vocal for Local” approach. When we promote indigenous products, small enterprises directly benefit. Enterprise registration gives recognition to such businesses.
Problems and Solutions
However, most small businesses are unaware of the Udyam registration. More so in villages, awareness is at a minimal level. In fact, the government has to do more work in this direction. It has to launch a public campaign for awareness.
Some of them believe that this will lead to an increase in their tax burden. This is wrong. The udyam registration and tax are two different things. Registering brings only benefits.
You Can Apply for Udyam Re-Registration Through Udyam Portal
Conclusion
Udyam registration is not just a mere certificate; this is a gateway for the growth of small businesses. It brings them into the mainstream and also provides a way to take advantage of government schemes. This provides opportunities, secures loans from banks, and offers the opportunity to learn new technologies. Udyam registration is the backbone of India’s MSME sector. The idea strengthens small businesses; it gives them the strength to stand. With more businesses coming on board, the economy of India will start becoming stronger. New employment opportunities will fall in place. Development will take place in villages and cities.
If you run a small or medium-sized business, get Udyam registration today. This registration can take your business to new heights. It brings your MSMEs to the notice of the government and creates a secure foundation for the future.