udyam registration benefitsBenefits we need to know about Udyam registration online
Udyam registration online is a government registration that provides a qualified Udyam registration certificate with a unique number. The primary motivation behind Udyam Registration is a way to provide maximum benefits to Indian Micro, Small, and Medium Enterprises through the Government of India (Government of India), where companies can get registered through MSME using their Aadhaar card number.
The government advertises more than 40 benefits of Udyam registration, but to be honest, many of them are redundant, and the implementation of many schemes on the ground needs to be revised. Web Online ca want to be transparent and fair with our customers and only cover what makes sense.
Udyam registration benefits- MSME Udyam Registration
Protection against late payments
This is one of the most significant advantages of Udyam Aadhar registration — Payment Protection. If you sell goods or services to a buyer as an MSME, the buyer must pay within 45 days. If the buyer fails to pay within a few days within the stipulated time frame, he will have to pay a monthly compound interest at three times the bank rate (about 16%).
If the payment is not received within 45 days, you can file a complaint on the government website and get your money back. The government will ensure payment is received and usually act on the complaint within 90 days.
Unsecured Loan
Generally, to get a loan, you have to provide collateral (home, office, etc.). However, this condition is waived off for MSMEs, and loans are available up to Rs. $2 billion without providing collateral. TBH, the scheme exists, but its implementation needs to be revised, as many MSMEs still need to get these loans from their banks. However, there are cases where entrepreneurs get Rs 1–1.5 crore but not Rs 2 crore.
Other Benefits of MSME Udyam Registration
Low Loan Interest Rates
Businesses having Aadhar Udyam certificates can avail 1% rebate on overdraft loans. So, for example, if you, an MSME, have a 12% bank loan from your bank, you can get a 1% concession on that loan, and the interest rate will be 11%.
Priority in government tenders
This is one of the recent benefits of MSME Udyam registration. The government has announced that only MSMEs can bid exclusively on government bids below $200 million. This is a welcome move by the government and will help MSMEs to get more business in the government sector.
Bill Discount — TReds
The present government has introduced a system called TreDs. Once the platform is activated, MSMEs will not have to wait long to receive their payments. Once the MSME has provided the company’s goods and services, the invoice must be uploaded on the TReDS portal. The customer is then informed to approve the invoice.
Udyam online registration helps them grow their business. The government has dramatically benefited the promotion and development of MSMEs by providing financial assistance in the initial years. By promoting ‘Make in India,’ the government will focus more on MSMEs for now.
