Do you know that our Indian economy is nothing without the support of MSMEs? Fortunately, the Government of India too recognized their value and implemented a range of schemes for their growth.
However, Udyam Registration is one of the key initiatives that was successful in formalising the existence of MSMEs. So, we are here to aid you in getting subsidies from Udyam registration.
Eligibility Criteria for Udyam Registration
You can enjoy subsidies with Udyam Registration, but make sure you're eligible for it. Go and check whether your business falls under MSME as per the criteria mentioned below:
- Micro Enterprise: As a microenterprise, your investment should be up to ₹1 crore and turnover more than ₹5 crores.
- Small Enterprise: As a small enterprise, your investment should be up to ₹10 crores and turnover more than ₹50 crores.
- Medium Enterprise: As a medium enterprise, your investment should be up to ₹50 crores and turnover more than ₹250 crores.
Steps to Obtain Udyam Registration
Are you done with the eligibility criteria? If yes, then it's time to get registered for your business under Udyam. We've mentioned steps to aid in registering:
Step 1: Visit the Udyam Registration Portal
To begin with your registration process, there is a need to look for the official registration portal of Udyam.
Step 2: Enter Your Aadhaar Number
For HUF and partnership firms, the Aadhaar number of the managing partner is required. When it comes to a proprietorship firm, the proprietor's Aadhaar number is a must-have. Lastly, the Aadhaar number of the authorised signatory is needed in the case of a company or LLP.
Step 3: Verify Aadhaar with OTP
Whatever registered mobile number is linked with your Aadhaar card will receive an OTP. You've got to enter the OTP for your Aadhaar details verification.
Step 4: Fill in Business Details
Now, provide your information related to business, like type of organisation, name of the enterprise, bank account details, PAN number, and address.
Step 5: Classify Your Enterprise
It's time to classify your enterprise as a medium, small, or micro enterprise. For this, you can take the help of the above-mentioned eligibility criteria.
Step 6: Submit the application
After filling in the required details, you can submit your application. With successful submission, you will have an e-certificate and URN.
How to Get Subsidies with Udyam Registration?
When you obtain your Udyam Registration, you can start your journey to explore various government provided subsidies and schemes. Here are some of the key subsidies available to registered MSMEs:
1) Market Development Assistance (MDA) Scheme
The MDA Scheme comes with financial assistance for MSMEs to let them participate in international and domestic trade fairs, buyer-seller meets, and exhibitions. It can aid your business to market the services and products; as a result, there will be a boost in your market reach.
How to Apply:
- Firstly, register for any trade fair or exhibition you want to participate in.
- Now, you've got to submit your relevant documents, such as the Udyam registration certificate and application form, to the respective authority who is organising the event.
- After the event, you can avail reimbursement by submitting a claim form along with your proof of participation.
2) Prime Minister Employment Generation Programme (PMEGP)
PMEGP is more like a credit-linked subsidy scheme that focuses on generating self-employment opportunities. It can be possible with microenterprise establishment in urban and rural areas. As per your category and location, you'll get a subsidy of 15% to 35% of the project cost.
How to Apply:
- Make sure to prepare a detailed project report for the business idea.
- You can apply online with the aid of the official PMEGP portal or approach the District Industries Centres (DICs), Khadi and Village Industries Commission (KVIC), or banks.
- Now, submit your necessary documents, like the project report and Udyam registration certificate.
- Once you get approval, you're all set for your enterprise and the operations.
- You can avail of subsidy, but you've got to submit a claim form along with your expenses proof.
3) Credit Linked Capital Subsidy Scheme (CLCSS)
The chief aim of CLCSS is to facilitate technology upgrade in MSMEs. It can be done with a subsidy of up to 15% on the investment made in machinery and plants. Such a subsidy is accessible to industries engaged in services and manufacturing sectors.
How to Apply:
- At first, you've got to look for the machinery or equipment that is needed to get upgraded.
- However, you can approach the nodal agencies or banks that should be authorized for implementing the CLCSS.
- Submit all your necessary documents, such as quotations for the machinery, bank details, project report, and Udyam Registration Certificate.
4) Technology and Quality Upgradation
Support to MSMEsYou can expect financial support from this scheme to adopt energy-efficient technologies. Also, you can obtain product quality certifications like HACCP, BIS, and ISO. Generally, it covers a part of the expenses incurred to implement such improvements.
How to Apply:
- There is a need to identify the technology or quality certification that are needed for your business.
- As a next step, approach the designated consultants or agencies for the implementation.
- You've got to submit your cost estimates, project proposal, and Udyam registration certificate to the respective authority.
- Just after the implementation, you've got relevant documents like proof of expenses for claiming the subsidy.
Conclusion
It can be concluded that Udyam Registration is one of the powerful tools to access a range of subsidies and benefits. As an MSME, your top priority should be leveraging such subsidies and taking your enterprise to new heights.