MSME stands for Micro, Small, and Medium Enterprises in a developing nation like India, MSME industries are the foundation of the economy. The MSME sector continues to contribute 45% of India’s total industrial employment, 50% of India’s total exports, and 95% of all the industrial units of the country and more than 6000 types of products are being manufactured in these industries(as per msme.gov.in). When these industries grow, the economy of nations grows as a whole and flourishes.
The Indian government presented a few businesses collaborate and changed the business meaning of MSMEs. As of late, the government gives the new registration portal which is the MSME Department’s another activity to enlist the new route for enrollment of MSME or Udyog Aadhaar. The main objective to introduce Udyam Registration is to fully integrate the MSME registration portal & to simplify the registration process and reduce time consumption. Udyam registration is a replacement of the old & outdated process of Udyog Aadhaar registration for registering under MSME.
Earlier the Udyog Aadhaar registration process was confusing and time-consuming and as there were many categories and multiple pages to go through. It required a lot of paperwork, and to upload documents on the portal, whereas, for Udyam it is a single-window, paperless process, completely free of cost & doesn’t include any online or offline agency, no additional documents or certificates required to register under MSME. Udyog Aadhaar can be registered multiple times which was a problematic situation whereas, Udyam registration requires only 1 Aadhaar per applicant.
There were differences between Udyog Aadhaar & Udyam registration but after the launch of Udyam Registration in July 2020, many UAM migrated to Udyam registration as it became mandatory for all. The no.s of MSME registration on the Udyam registration portal will level up the mark of 1 crore MSMEs registration under Udyog Aadhaar Memorandum(UAM) and is most likely to cross it in upcoming 2-3 years of period. As currently a mark of 33 lakh registration has been achieved in just 11 months after its launch in July 2020 and a major boost in Udyam registration came in the month of May-June 2021 where more than 3 lakhs registration were done and took the tally of registration to 33 lakh mark.
As a total of 1.02 crore MSMEs as per govt. data were registered under Udyog Aadhaar registration after the implementation in Sept 2015 which took on around 5 years whereas, Udyam registration will be able to get 1 crore registration in just 2-3 years, as there’s a major boost through hassle-free Udyam registration process.
As Udyam registration provides many benefits like easy bank loan without any collateral mortgage, special preference in getting tenders, concession in electricity bills, 1% of exemption on interest rates on bank OD, tax rebates, fast resolution of disputes, protection against the delay in payment from buyers. As per the government annual report, presently there are 6,08,41,245 MSMEs in India.
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