The government announced new standards that will enable new companies to register online based on self-declaration and will make uploading any documents unnecessary from July 1st, 2020. Officials said that this was made possible by integrating the Udyam registration process into income tax and GST systems and that the details filled in could be verified using the PAN number or GSTIN details. This scheme is introduced to convert the demographic advantage into a demographic dividend and create opportunities for existing as well as a new labor force to have employment gain.
What is Udyam Registration??
“A company can only be registered based on the Aadhaar number. Other details can be provided on a self-declaration basis, without the need to upload or submit a paper – so it’s a paperless exercise,” says one official statement.
The notification also states that an MSME is referred to as Udyam in the following, as this comes closer to the word company. Accordingly, the registration process Udyam Registration will be known. Udyam registration is important for business startups and MSME Companies whereby registering you will be able to enjoy the benefits offered by the government schemes.
Following are the benefits you will enjoy if get registered under new Udyam Scheme:-
1. Reduction in interest rates for loans.
2. Loans from banks free of collateral fees.
3. This will make sure that none of your payments get delayed and ensure the delivery of your goods and material/service on time.
4. Provide you with highly beneficial reservation policies in manufacturing and production.
5. In today’s world where obtaining licenses is very difficult, Udyam registration will make the process of obtaining licenses, registration, and approval easy.
6. It helps you to become eligible for CLCSS (Credit Linked Capital Subsidy Scheme).
7. You will be able to attend trade fairs at the international level and will be enjoying special consideration there.
8. While participating for tenders you will be provided government security deposit EDM (Electronic Direct Mail) waiver.
9. You will also get concessions in your electricity bills.
10. You will also be provided registration fees and stamp duty waiver, once you register for Udyam.
11. Recompense for ISO (International Organization of Standardization) certification fees.
12. Freedom from direct tax laws rules.
13. Interest rates released on OD (Over Draft Account).
14. You will get a subsidy on credit rating fees and NSIC (National Small Industries) performance.
15. You will also be provided a subsidy on patent registration, barcode registration.
16. By registering under Udyam Parichay you will be eligible for the industrial promotional subsidy (IPS).
17. You will get special consideration in applying for government tenders.
18. On trademark and patent, you will get a special 50 percent discount on government fees.
19. Any disputes will be resolved very fast.
20. Special rebates on taxes.
21. You will get an easy bank mortgage.
22. This government scheme also has special benefits for states and union territories where they have their packages of facilities and initiatives for small scale businesses.
Some other Benefits of Udyam Parichay
Following are some additional benefits of Udyam Registration:-
❖ Udyam registration online portal – So that people do not have to run here and there the government has introduced an online portal for Udyam enrollment, also known as Udyam Parichay, with a self-declaration. All Udyam Authentication based on Aadhar number will be contained in this portal. As well as no other documents or attachments will be needed to upload.
❖ Udyam Portal Integration – For a hassle-free easy verification of enterprises who are applying for Udyam registration the central government has made an integration agreement with Income Tax and GST Portal Systems and with this you will be able to enjoy many other benefits also.
Click here for Udyam Parichay Registration.