Small and medium enterprises (MSMEs) in India are the backbone of the country's economy. These industries not only employ millions of people but also play an important role in exports and innovation. In such a situation, the government brings many schemes and benefits for MSMEs from time to time. But to take advantage of these schemes, you must have a special identity—Udyam Registration.

We can easily call Udyam Registration the "Aadhaar Card" of MSME. This identity card recognizes your business in the eyes of the government and makes you eligible for all those government schemes that aim to empower MSMEs

Let us understand in detail how Udyam Registration can become the key to your access to government schemes.

1. What is Udyam Registration?

Udyam Registration is a simple and digital process initiated by the Government of India, under which any businessman can register their micro, small, or medium industry. This entire process is online and only requires an Aadhaar card, PAN card, and some basic information.

Once registered, the business receives a Udyam Registration Number (URN) and a Udyam Certificate. This certificate opens the door to government schemes for you.

2. Only registered MSMEs get the benefit of government schemes

The government runs many schemes for the development of MSMEs, like easy loans, interest subsidies, technical support, marketing assistance, skill development programs, etc. But the thing to note is that the benefit of these schemes is available only to those businesses that are registered under the MSME.

That is, if you do not have Udyam registration, then you may be deprived of these government schemes.

3. Major government benefits from Udyam registration

Now let us know which important government schemes and facilities you get the benefit of after getting Udyam registration done—

(a) Business loan without a guarantee

The government has launched the Credit Guarantee Scheme (CGTMSE) for MSMEs. Under this, businessmen can get a loan from the bank without any guarantee. The only condition is that your business should be under Udyam registration. 

(b) Interest rate discount

MSMEs get interest-rate discounts on loans from banks and financial institutions. This discount is given only to businesses with Udyam registration. For this, you have to download your Udyam certificate download PDF (Udyam Annexure Certificate) 

(c) Government subsidy and incentive schemes

Only registered MSMEs get the benefit of many schemes like the technology upgradation scheme, market development assistance, subsidy on ISO certification, subsidy on energy-saving equipment, etc.

(d) Access to government tenders and the GeM portal

MSME is given priority on the government's GeM (Government e-Marketplace) portal. Only businesses with Udyam registration can register on this portal and sell goods and services directly to government departments.

(e) Tax benefits

Many states and the central government provide tax rebates or exemptions to MSMEs. For this, it is necessary to have a Udyam certificate.

(f) Protection in bankruptcy and debt resolution

Under the MSME Act 2006, businesses with Udyam registration get legal protection and the right to receive money with interest in case of delay in payment.

4. How does Udyam registration become the key to schemes?

Government schemes are effective only when their benefits reach real businessmen. Udyam registration works to connect this link. It acts as a bridge between the government and the business.

• The government gets to know which businesses are MSMEs.

• The business gets official recognition.

• The benefits of the schemes reach both in a transparent manner.

That is, by having Udyam registration, you are included in the reliable database of the government, and you get the benefit of every new scheme first.

5. Disadvantages of not getting Udyam registration

If you have not yet gotten Udyam registration done, then you are being deprived of many benefits:

• You may have to give more guarantees or security for a bank loan.

• You will not get a discount on the interest rate.

• You will not get the opportunity to participate in government tenders and the GeM portal.

• You will be out of tax and subsidy-related benefits.

• You will not be able to take advantage of special schemes made for MSMEs.

6. How to do Udyam registration?

The process of Udyam registration is very simple and completely online.

1. Visit the authentic website Udyam registration portal 

2. Fill in the Udyam registration form.

3. Fill in PAN and GST details (if applicable).

4. Enter the basic information of your business.

5. After OTP verification, your registration will be completed.

6. You will receive the Udyam Certificate via email.

This entire process is completed in just a few minutes.

Udyam registration number forgot: don't worry, you can recover it easily by visiting the Udyam registration portal 

Conclusion

In today's competitive era, any business needs government support to move forward. Udyam registration is the key that opens the doors of government schemes for you. Be it easy loans, subsidies, tax exemptions, or government tenders—Udyam registration is necessary to avail all these.

If you are also running an MSME and have not registered yet, then do not delay. Get Udyam registration done today and take your business to new heights.