The acronym for the Ministry of Micro, Small, and Medium Enterprises (MSME) is the Ministry of Micro, Small, and Medium Enterprises (MSME). The Indian government has taken steps to encourage the growth of MSMEs across the country. As a result, they are launching a variety of programs to help firms succeed. MSME registration is one of the programs that can assist a company in a variety of ways.
However, before you make use of the scheme’s numerous benefits, you need first to learn about the udyam registration process.
After successfully completing the MSME registration process, you will receive an instant Udyog Aadhaar certificate, which will allow you to take benefit of several government business programs.
Certificate of MSME Udyam Registration:
In 2006, the Indian government enacted the MSMED Act to promote the growth of Micro, Small, and Medium Enterprises.
MSMED can help service and manufacturing businesses with revenues of less than Rs. 250 crore and Plant, Machinery, and Equipment returns on investments of less than Rs. 50 crore under the Income Tax Act.
The Udyam Registration process was created to provide benefits to micro, small, and medium-sized businesses from the state government, the federal government, as well as banks and financial organizations.
Udyam Registration, according to MSME, could not be utilized as a business of address proofs unless in exceptional circumstances. Udyam registration is open to any type of business.
Nevertheless, you must complete a specific procedure by completing the application form.
To acquire Udyam registration online, the MSME registration involves personal information, business information, and a variety of other criteria.
Now, let’s look at the advantages of Udyam registration and how they might help you expand your business.
Benefits of the Federal Government:
- Subsidies financially
- Priority lending from banks under certain circumstances
- Tendering/Selection of Suppliers
- In terms of government choices, there are additional particular benefits.
- On the basis of a lifelong valid Udyog Aadhar Registration, nationalized and private banks in India offer 100% collateral-free loans under the Credit Guarantee Scheme (CGTMSE).
- Micro and small enterprises can apply for a government-approved Mudra loan of up to Rs.10 lacs at a low-interest rate.
- Eligible facilities can obtain technical upgradation subsidies of up to Rs.15Lacs at a 15% rate under the Capital-related Subsidy Scheme.
- The TEQUP programs provide registered MSME businesses with a capital subsidy of 25% of the project cost up to Rs.10 Lacs.
- The government of India will fund 25% of the project’s cost as a subsidy, with the other funds coming from SIDBI, banks, and other financial organizations.
- A 50 percent incentive is available for patent registration for a business name.
- In government tenders and departments, the option of waiving the security deposit is offered.
Suggested Read- print udyog aadhaar certificate
Benefits of State Government:
State government policy differs from one state to the next.
- Term loans of 10 to 20% are given to the plant, machinery, and building investments.
- Interest subsidy reimbursement can save you between 5% and 9% on your term loan.
- Fees incurred by the CGTMSE for a term loan are reimbursed.
- MSME units can participate in international trade fairs if they are registered.
- For a period of five years, there will be no electricity duty.
- The MSME department facilitates training for Udyam Registered Units, as well as providing technical and capital advice to help them improve their businesses.
- Capital and interest subsidies are given to food processing firms and information technology development companies.