The latest reports say that more than 88 lakh MSMEs were registered to the Udyog Aadhaar program since its initiation back in 2015. In this data, while medium businesses accounted for just above 37 thousand registrations, the number rises above 9 lakh for small businesses. Furthermore, the number of micro ventures registered under this initiative is above 78 lakh.
With a high number of micro and small enterprises opting for MSME registration, it is important for unregistered business owners to understand the offered benefits as well as the application procedure.
While the offered benefits ensure every type of assistance is provided to MSME ventures for their development and growth, the application procedure is simple and hassle-free.
Benefits of MSME registration
While the most flourishing and best business ideas can be successful by their own merit, registering under Udyog Aadhaar can ensure they have additional assistance in their expansion goals.
Some of the major benefits offered post-registration are discussed below –
- Easy financing: One of the best advantages offered is that MSMEs can avail cheaper business loans at reduced interest rates. Up and coming organizations are in need of certain financial aids, which is just what this scheme directly provides. Subsidies offered on registering under Aadhaar Udyog apply to subsidized rates of interest on loans availed by businesses. Furthermore, reimbursement or discounts are offered on ISO and patent registration charges.
- Tax benefits: While there are many tax-saving tips for small business owners, registering an MSME under this initiative offers additional benefits. One of them is exemptions offered on liable taxes.
- Tenders: Tenders that are reserved by the Government of India for MSMEs which are registered under the initiative.
By registering under Udyog Aadhaar, entrepreneurs can effectively build a successful manufacturing business with such assistance.
MSME registration procedure
The MSME registration procedure, explained below in detail, is quite simple and can be completed within a few minutes.
- Required documents should be arranged and scanned beforehand. It includes Aadhaar card details, industry registration documents, financial account details, canceled cheque, etc.
- The form can be accessed from the official website. While it can be filled online, entrepreneurs can download and fill it for offline applications.
- Applicants need to provide information including –
- Business name and type,
- The primary location of the business,
- Major activity – manufacturing or service,
- NIC, etc.
Once registered under Udyog Aadhaar, MSMEs can easily avail of financial assistance from numerous lending institutions in the form of different types of business loans. This includes machinery loans, working capital loans, etc. Important to note, entrepreneurs should learn working capital management along with planning the repayment to ensure timely clearing of their line of credit.
Typically, the application procedure for these loans is also quite easy with a reputed institution like Bajaj Finserv.
The company provides pre-approved offers that minimize the loan application time by simplifying the process. Such offers are provided on numerous loan products including business loans, personal loans, etc.
Any business which has already opted for MSME registration can easily avail business loans at more affordable interest rates, and typically they are approved very fast too. They can also benefit from a preference for government licenses and certifications, concessions on electricity bills, and more.