All economies of the world are divided into the following three categories, Large enterprises, medium enterprises and small scale industries. At first glance it might seem to a commoner that large scale enterprises are the best. However, the true backbone of any economy lies in the hands of the Small scale and medium business owners. There are usually privately held businesses. Small and Medium Enterprises, ie., SMEs are basically the driving force for innovation, employment generation and wealth creation. Udyam Registration is an innovative step by the Government of India in order to protect the interest of SME owners of India.
The Indian Government has realized that its real strength is in the hands of SMEs of the nation. As a result, it has started taking various measures, and initiatives to not only promote but also help SMEs in growing and sustaining. Udyam Registration is one such step taken by the Government. Udyam Registration has a lot of benefits for small and medium enterprise owners. It opens a whole new world of opportunities by just one simple registration.
Through this blog post, we will understand the various opportunities that micro, small, and medium enterprises get by opting for Udyam Registration. But first, let’s see what exactly Udyam Registration means.
What is Udyam Registration?
MSME Registration or Udyam Registration is a special initiative by the Ministry of Micro, small and medium enterprises, that allows a special certificate for such small enterprises, as their identification. With that said, having this MSME certificate, is beneficial in a lot of ways to business owners.
Let’s tap into the benefits of Udyam Registration.
Access to Government Schemes and Benefits:
The main idea behind the Udyam certificate is to help SMEs grow. So, the government has introduced many benefits and schemes for business owners registered under the Udyam Scheme. They get priority sector lending, credit guarantees, and various subsidies. This helps them in tapping new horizons without facing financial constraints.
Enhanced Credibility and Marketability:
Any governmental registration or license makes it easier for the general public to trust in a brand. Similarly, even the Udyam registration is a government certification that has the ability to enhance your credibility in the market. You can even use your MSME title to create marketing opportunities for your business. Having the MSME certification will also help you in retaining trust of existing market, and spread the word of mouth and build new connections!
Easy to get contracts from government
When a private business enters into an agreement with the government or any of its departments for sale of products or services, it is generally referred as ‘government procurement’. The GoI has made it easier for the small businesses having udyam registration to secure government contracts and participate in public procurement. For major governmental departments, it is mandatory to have a udyam registration certificate to get tenders from the government department.
Technological Growth and Support
The government has set up initiatives to help small businesses in getting access to latest technology. Through these initiatives, they give Udyam registered businesses of India the access to training programs, tech support, automation tools etc. Further, they also incentivize the SMEs opting for the support and using these technologies. This has made it easier for small businesses to survive in this cut throat digital age. This support enhances productivity, efficiency, and competitiveness, positioning small businesses for sustained growth in the digital era.
Collaboration and Networking Opportunities
The government has a specified database of all the udyam registered businesses. Having udyam registration gives you the access to government database. This will allow you to connect with other government bodies, micro, small and medium businesses, and industry aggregators. This helps in building connections, sharing knowledge, resources, building a team, and also opens up a lot of business opportunities.
Rebate in filing Trademark Application
While applying for a trademark application, the government fees applicable to all businesses is Rs. 9000/-. However, the government has another initiative, wherein the businesses that have their MSME Certificates or Udyam Registration can claim a 50% rebate in filing the trademark application. Hence, the cost is Rs. 4500/- for micro, small and medium enterprises.
Subsidy on patent filing
Trademark is not the only intellectual property right that provides certain special benefits to startups and small enterprises. Patent department of India also proves a 50% reduction in the fees for filing a new patent for all MSMEs.
Opens ways to International Market
Enterprises that have udyam registration also get access to various schemes of the government which help in opening the doors to an international market. Further, there are other schemes and initiatives of the government of India, which assist SMEs of India with participating and indulging in the foreign trade fairs, international marketplaces and more.
Udyam Registration online is a powerful tool that empowers small businesses by unlocking a wide range of opportunities and benefits. From access to government schemes and enhanced credibility to easier procurement and collaboration avenues, Udyam Registration opens doors for small enterprises to thrive and succeed in a competitive business landscape. By recognizing the importance of small businesses and supporting their growth, the government is fostering an inclusive and dynamic entrepreneurial ecosystem that drives economic progress and societal development.