A new process of classification and registration of MSME Enterprises was launched on July 1, 2020 under the name of ‘Udyam registration’. The Union Ministry of Micro, Small and Medium Enterprises (MSME) had made the announcement regarding the same through a notification on June 26.
Following are the benefits of obtaining Udyam Registration:-
- The business owner can avail octroi and tax conession in states laws as applicable.
- Claim stamp duty and registration fees waiver.
- Exemption of 1% interest rate on Overdraft.
- Can avail subsidy from NSIC and credit ratings & Eligible for IPS subsidy.
- Reimbursement on the payment made for obtaining the ISO certificate.
- Reservation of products for exclusive manufacturing by MSME and SSI.
- Avail Excise Exemption Scheme.
- Avail exemption while applying for government tenders.
- Exemption under direct tax laws.
- Enjoy easy bank mortgages and Bank Business Loans
- Bank loans become cheaper as the interest rate is very low (Upto 1.5% lower than interest on regular loans
- Becomes easy to get licenses, approvals and registrations, irrespective of field of business as business registered under Udyam are given higher preference for government license and certification.
- Registered Udyams gets tariff subsidies and tax and capital subsidies
- Interest rate Subsidy on Bank loans
- Protection against delayed payments, against material/services supplied
- Ease of obtaining registrations, licenses, and approvals.
- MSME Registered entity gets eligible for CLCSS (credit linked capital subsidy scheme)
- Subsidy is available for Patent registration
- Industrial Promotion Subsidy (IPS) Subsidy Eligibility
- One can avail 100% Collateral Free loans from all banks
- Special consideration on International Trade fairs
- Bar Code Registration Subsidy
- Waiver in Security Deposit in Government Tenders and Departments
- Concession in Electricity bills
This is all about the basics of Udyam Registration. Once your MSME is registered under udyam you would need business software to manage daily business transactions. EZO is an all purpose Accounting software as well as a business app that helps in Billing, Inventory management, Banking, Invoicing and much more.