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21+ Udyog Aadhaar Key Benefits and Registration Process

udyog aadhar benefits

Indian Government has recently announced a 3.5 Lac Crore + Plus budget for the business persons of India. In order to get all of the benefits announced by the Indian Government, you must have your MSME Registration Certificate. There are various benefits for MSME Registration/ Udyog Aadhaar Certificate and we have stated all of them below. If you want to get your MSME Certificate then we are going to help you with this. Click on the link given below and apply for your Udyog Aadhaar Certificate and get it within 01 Hour.

udyog aadhar benefits

Collateral Free Loan

Bank Loan without Collateral Guarantee for all Small and Micro Sector. The Benefit is available to both Old as well as New Registered Companies. Under this Scheme, Credit Guarantee Trust Fund Provide Guarantee for Loan of Small and Micro Sector. Enterprises, who don’t have any collateral security for security purposes, can avail the benefit, just by registering themselves as MSME (Micro Small and Medium Enterprises).

1% Discount on Bank Overdraft Interest Rate

As per the scheme, enterprises registered under MSME can avail of the benefit of a 1% Interest Rate Exemption on Bank O/D Interest. Both Old and as well as newly registered enterprises can get the benefit of Discounted Interest Rate.

50% Subsidy on Trademark & Patent Registration:

Enterprises registered under MSME can avail of the benefit of a waiver of 50% legal fees applicable to the registration of Patent & Trademark.

Concession on Electricity Bills:

MSME Registered Enterprises get concessions from Government on Electricity Bills. The Enterprises can make an application to the electricity department with MSME Registration Certificate and avail benefit of Concession on Electricity Bills.

ISO Certification Charges Reimbursement

MSME registered enterprises can claim reimbursement of all expenses incurred for the ISO Certification of their business. The Government of India provides reimbursement of Charges for acquiring ISO 9000 Certification to the extent of a maximum of 75% of the expenses subject to a maximum of Rs. 75000/- in each case

Waiver of Stamp Duty and Registration Charges

Under earlier scheme IT Units in Public IT Parks are only exempted from payment of Stamp Duty and Registration Charges. Now, under revised scheme, all MSME Registered Industrial Units and their expansion are exempted from payment of Stamp Duty and Registration Fees.

Industrial Promotion Subsidy Eligibility

MSME Regsitered Enterprises are also eligible for subsidy on Industrial Promotion as per norms of Central Government

Protection against delay in Payments

Micro Small and Medium Enterprises (MSME) sector is the backbone of Indian Economy. The Government has also protected the interest of MSME Enterprises against delayed business payments from buyers. When an MSME Registered Enterprise supplies goods or provide services, the buyer or recipient is required to make payment in agreed time between both parties. If no time has been agreed, the buyer is required to make payment in 15 days from the date of acceptance of goods or services. In any case, payment time should not exceed a maximum period of 45 days from the date of acceptance of goods or services.

In case of Failure by the buyer, the MSME Registered enterprises having valid UAM can make an application to the Micro and Small Enterprise Facilitation Council (MSEFC), for protection against delayed payment. The MSEFC Council will direct the buyer to pay the amount along with interest at a rate 3 times higher than the effective bank interest rate from the date of acceptance of goods or services. Every case registered to MSEFC shall be decided within a period of 90 days from the date of registration of the case. The government has also launched “MSME Samadhaan Portal” for the same. Now, MSME Registered Enterprises can file online cases for protection against delayed payments by Central Ministries/ Departments/ CPSEs/ State Governments. MSME Enterprises can also Check the Present Status of the case online at any time.

15% subsidy under CLCSS to Purchase the Machinery

The Ministry of Micro, Small, and Medium Enterprises has launched a scheme “Credit Linked CGSTI Subsidy Scheme” CLCSS for the upgrade of Plant and Machinery and Technology in the MSME Enterprises. Under this scheme, the MSME Registered Enterprise will get 15% Capital Subsidy on the purchase of plant and machinery. The maximum amount of subsidy is capped to Rs. 1500000/- or 15% of the total amount of purchase(whichever is lower). It is the maximum amount of eligible loans for calculation of subsidy under the Scheme is 100 Lakhs(1 Crore).

Octroi Related Benefits

The scheme of refund of octroi provided under Package Schemes of Incentives,1993 is included in the new revised scheme up to 31 March 2006 on the same terms. Where any cess or other levy is charged in place of octroi, Such charge is also eligible to refund the same in case of octroi.

Excise Exemption Scheme

MSME enterprises with a turnover of Rs. 1 Crore or less per year have been exempted from payment of Excise Duty. Moreover, under the general scheme of excise exemption for MSME brought by the Ministry, most of the items are covered. MSME Units having turnover of Less than 3 Crore are directed to pay Excise Duty at a concessional rate.

NSIC Credit Rating Subsidy

Any SSI or MSME Unit having valid registration can avail NSIC Credit Rating Scheme and get financial assistance of fee from NSIC for Credit Rating of the Business. The amount of financial assistance is as follows:

For Business with Turnover up to 50 Lakhs75% of the Fee or 25000/- whichever is less
For Business with Turnover above 50 lakhs but up to 200 Lakhs75% of the Fee or 30000/- whichever is less
For Business with Turnover more than 200 Lakhs75% of the Fee or 40000/- whichever is less

Reservation Policies to Production/ Manufacturing Sector

For the promotion of this sector under the Industrial Act, 1951 items are exclusively reserved for manufacture in Small Scale Industries (SSI) or MSME Registered Units. The two main objectives of this policy are to ensure the increase of production of consumer goods in the Small Scale Industries and expand employment opportunities through setting up of small scale industries.

Easy to Get Licenses, Registrations, and Approvals:

For Enterprises, having a valid MSME Registration Certificate it is very easy to get approval, licenses, and registration related to their business field. They can produce their MSME Certificate at the time of making an application.

Financial Assistance on International Trade Fairs

Under the Market Development Assistance Scheme (MSME-MDA), Financial Assistance is organizations registered with MSME for deputation of MSME Business delegation to other countries, to encourage exports from SSI/ MSME Units and development of overseas markets. The scheme provides funding for participation in International Trade Fairs/ Exhibition, Study Tours, Buyers Seller Meet, Holding International seminars, and conferences, etc. The financial assistance is provided as per Government of India Norms

Exemption under Direct Tax Laws

Organizations Registered under MSME/ SSI are also entitled to benefits of Direct Tax Laws as per the policy of the Government. The presumptive scheme under section 44AD is available to MSME Enterprises under which business units with turnover of Less than 1 Cr can declare income on a presumptive basis and not required to maintain detailed books of accounts and auditing.

Bar Code Registration Subsidy

Under this scheme, MSMEs having registration and who have made an application for registration of Bar Code will get reimbursement of 75% of the applicable fee for barcode registration. Besides this, they will also get 75% reimbursement of the Bar Code Renewal Fees for the first 3 years.

Counter Guarantee from Government of India

Enterprises that have MSME Registration are eligible for Credit Guarantee under CGTMSE or CGSTI as per applicable norms of the Central Government. Under this Government of India provides a guarantee to lending Institutions on behalf of MSME Units.

Reduction in Rate of Interest from Banks

The MSME Registered Organizations can avail loans and advances from banks at less rate than current prevailing rates. The government has launched various schemes under which Certain Percentage of advances of lending institutions is reserved for finance to MSME Units at a Lower rate of interest.

Waiver in Security Deposit with Government

The Ministry of Micro, Small, and Medium Enterprises provides benefits to enterprises with MSME Regsitration while applying for Tenders Issued by Government. For eg. Issue of Tender free of Cost, No Deposit of Earnest Money is required, Waiver of Security Deposit

Preference is Procuring Government Tenders

Business Enterprises with MSME Registration are given preference in procuring Government Tenders. MSME Registered Units are given special treatment for the procurement of Government Tenders. Latest, the Government has announced that Government will not float global tenders for amounts below 200 Crores. First preference will be given to Indian Business Enterprises. Business Enterprises will MSME Registration can grab this opportunity and avail several benefits.

P15% Weightage in Price Preference

Enterprises that have MSME Registration can avail 15% weightage in price Preference as mentioned.

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