Udyam Registration is a registration for small and medium enterprise businesses in India. The Government Udyam Registration's main objective is to provide single-page registration, less time-consuming and simplify processes of registering of any enterprise under Micro, Medium and Small Enterprise (MSME). Any form of an agency such as a limited liability partnership (LLP) or a private limited company can be registered with the Udyam registration portal.
Udyam Registration Benefits
Some of the major benefits of Udyam registration certificate in India are discussed below:
The Government of India initiated various scheme and reforms to upgrading small-scaled business enterprise through this Udyam certificate, that allows to avail credit without collateral. This is the best Udyam benefits for small scale business owners, as it offers a collateral-free loan that is accepted by the Government of India, Small Industries Development Bank of India, and the Ministry of Micro, Small, and Medium Enterprise under the name The Credit Guarantee Trust Fund Scheme.
Small and medium scale business enterprises registered under the Ministry of Micro, Small and Medium Enterprises Development Act, 2006, gets a heavy subsidy for patent registration and Industrial promotion.
Enterprises registered as Udyam under the Ministry of MSME are eligible to get a benefit on the overdraft as part of the Credit Guarantee Trust Fund Scheme. Note: this can vary from bank to bank.
An Udyam registered small-medium enterprise can claim the expenses for reimbursement that were spent on ISO certification.
Small businesses registered under the new MSME Udyam registration Portal, they can get some concession on electricity bills.
Micro, small and medium owners can take part in Government tender auction. They can easily avail exemption while applying for government tenders.
With this new Udyam registration certificate business owners are eligible to apply for other official certificates, approvals, and registration in India.
The Government helps registered Udyam company, in the reduction or removal of a liability. It may provide complete relief from taxes, reduced rates, or tax on only a portion of items.
The Indian government encourages and approves Udyam registered startups, entrepreneurs company, and existing small-medium businesses to take part in international fairs, to display and promote their products and services.
Investment in plants and machinery or equipment shall be calculated in accordance with the Income Tax Return (ITR) of the previous years submitted under the Income Tax Act, 1961.
In the case of a new undertaking, where no prior Income Tax Rules - ITR is available, the investment shall be based on the company promoter 's self-declaration and such relaxation shall expire after 31 March of the financial year in which it submits its first (Income Tax Rules) ITR.
The word − plant and machinery or equipment of the company shall have the same significance as that given to the plant and machinery in the Income Tax Rules of 1962, as laid down in the Income Tax Act of 1961, and shall include all tangible assets (other than land and buildings, furniture and fittings).
The value of the purchase (invoice) of a plant and machinery or equipment, whether purchased first-hand or second-hand, shall be taken into account on a self-disclosure basis, excluding Goods and Services Tax (GST), if the undertaking is a new one without an ITR.
The costs of those products stated in Explanation I to subsection (1) of section 7 of the Act shall be exempt from the calculation of the cost of total in the plant and machinery.
Exports of goods or services, or both, are excluded for classification purposes when calculating the turnover of any enterprise, whether micro, small or medium.
The information relating to an enterprise's turnover and export turnover is linked to the Income Tax Act or the CGST Act and the GSTIN.
The turnover-related estimates of those businesses which do not have PAN shall be regarded on the basis of self-declaration for a duration up to 31 March 2021 and, thereafter, PAN and GSTIN shall be needed.