Top 6 Benefits of MSME Udyam registration
MSME Udyam registration is an online process through which you register your companies under the MSME Scheme. There are several benefits you can avail after completing your Udyam registration, which we shall see here.
1. Bank Loans - Collateral Free, Lower Interest Rate
After completing your Udyam registration, you are officially an MSME under the MSMED Act. MSMEs are eligible for collateral-free loans offered by the Indian government. This scheme is implemented by The Credit Guarantee Trust Fund Scheme. MSMEs also have access to loans of lower interest rates for amounts less than INR 1,00,00,000.
2. Subsidies on Registration
Another benefit of Udyam registration is the numerous subsidies it can help you avail. There is a 50% subsidy available for patent registration/application. This can be a motivation for your startup to come up with innovative ideas.
Other than that, subsidies on barcode registration and stamp duty are also available to MSMEs who have completed their Udyam registration.
3. Reservation Policy and Market Assistance
Competition in any market is inevitable. As a micro, small, or medium enterprise, you may find it difficult to establish yourself in the market given the strong competition that exists. This is where your Udyam registration can come in handy. Registering your enterprise as an MSME can help you avail the reservation policy.
According to the reservation policy, the central government allows only MSMEs to manufacture certain categories of products such as pickles, wooden furniture, and jute, among many others.
Market assistance helps your MSME gain enough traction and sales. The government has listed several items that will be exclusively bought from MSMEs. It is also available to MSMEs that do not fall under the reservation policy.
4. Protection from Delayed Payment
The Ministry of MSMEs keeps your best interest in mind and safeguards against delayed payments. You may find yourself in a situation where a buyer has not paid you yet, which leaves the MSME at risk. In such cases, the Ministry lets you levy an interest based on the delay in payment.
5. Electric Bills Concessions
Use your Udyam registration certificate to apply to the Electricity Department for concessions in your electricity bill. This is one of the many benefits of MSME Udyam registration that can help your venture grow, without being restrained by factors like electricity cost or power consumption.
6. Reimbursement Of ISO Certification Charges
An ISO certification can help your MSME in many ways. It indicates that your products are up to standards and can open up global markets for you. However, the cost of certification might bother many entrepreneurs. MSMEs who have completed their Udyam registration are eligible for reimbursing the cost of their ISO certification, which can be a nudge in the right direction for many establishments.
Now that you have seen the benefits of getting an Udyam registration, what are you waiting for? Contact us now to get your MSME registration done quickly and avail these advantages! At Saryu Business Solutions, get your Udyam registration certificate within 3 days as we take care of the entire process, from application to delivering the certificate at your doorstep!