Micro, Small, and Medium Enterprises what we call (MSMEs) play a crucial role in driving the Indian economy. They create a large number of jobs for Indian people and aid in the financial growth of India. The government has introduced the Udyam Registration to support MSMEs. Udyam registration of small businesses opens the door for so many government schemes and subsidies. Here are some reasons why Udyam Certification matters for small businesses.          

Access to Government Schemes/Subsidies:-

Udyam registration provides easy access to government schemes and subsidies. The government comes with so many schemes that subsidize small business these include credit-linked capital subsidies, skill development programs, export promotion assistance, and reimbursement for ISO certification and patent registration and for access that schemes businesses must have Udyam Certificate.

 Official recognition of Business:-           

Udyam registration provides official recognition for Business that enhances the credibility of Business for customers and as well as investors. That recognition is going to help them in collaboration with other businesses.     

Loan with less collateral and low Interest rate:-

Udyam registration provides easy access to finance. Udyam certified Business find it easy to secure a loan from Banks and other financial Institutions. Generally that loan has lower interest rates and also very less collateral required. That allows them to manage working capital and expand their business

Protection against delayed payment:-

Udyam registration protects small businesses from delayed payments by larger businesses.  The government has come up with a mechanism to protect MSMEs from delayed payments by larger businesses. That helps MSMEs to have good financial stability and mentioned better cash flow.

Small Business registered under Udyam Certification is given preference in government tenders. That makes it easier to get contracts from platforms like E-Marketplace. That can help them to secure a valuable contract and boost their revenue.  

Tax Benefits and Exemptions:-

MSMEs registered with Udyam can carry forward (MAT) Minimum Alternate Tax up to 15 years (earlier which was only 10 years and) get rebates on direct taxes. That will reduce the operational cost of business.

Rebate from State Government:-

Small Business registration with Udyam gives access to rebates by both the Central Government and State Government. That rebates going to save more on setting up the business. There is some state government offering subsidies on electricity bills for Udyam registered businesses that’s going to help to reduce operational cost.           

Simplified Tax and Compliance-

Udyam registration makes tax filing and regulatory compliance easy, especially when databases integrate with GST and PAN. Being a registered MSME helps in financial tracking, better organization and also better coordination with tax consultants

Support available for Diverse Business Types

Udyam Registration inclusively covers proprietorships, partnerships, (HUF) Hindu Undivided Families, trusts and societies and also manufacturing service retail and wholesale This wide range of eligibility ensure that all small businesses, including startups and women/ST/SC entrepreneurs, can be benefited. This scheme provides loans up to Rs2 Crore for first-time  entrepreneurs