Introduction:
A new registration process has been presented by the Government of India to bring uniformity and ease into the Micro, Small, and Medium Enterprises registration. It will replace the already existing Udyog Aadhaar system; it is going to provide chances to small businesses, start-ups, and entrepreneurs for taking all the benefits offered by the government, subsidies, and services. It is thought that the new procedure for registration will be more efficient than the previous one. At the stage of registration, some problems are also encountered by the firms. The paper identifies a great number of general problems in their solution and compliance advisors in the context of the Udyam Registration Process.
1. General Challenges in the Process of Udyam Registration Process:
The system is also streamlined. There are certain challenges that business people face despite the streamlining of this system. Here is the list of the most prevalent challenges.
A. Technological Literacy and Infrastructural Access
- Most rural small business owners lack infrastructure and also possess low degrees of digital skills that qualify them to apply on their own.
- Solution: Internet instructional training tutorials on procedures step-by-step for application and facilitation centers erected by the government as well as other industries within the local areas catering to small business operators.
B. Eligibility Criteria
- Most of entrepreneurs are also ambiguous regarding the eligibility of a business especially about the investment threshold and turnover.
- Solution: The eligibility and finance calculators as available through the Udyam portal would help determine an MSME's status regarding eligibility as per prevailing MSME eligibility criteria, besides seeking the advice of a financial advisor to access further eligibility details
- Challenge: Being self-declared information, there are chances that incorrect information was given at the time of registration through Udyam, resulting in rejection as well.
- To Always have financial statements, investment documents, and turnover statements handy to be compared with when filling in the detail
- The information so declared gets updated in periods to ensure that the information available is accurate
C. Overcoming Aadhar Verification Problems
- Aadhar verification is compulsory but different Aadhar users are facing difficulties in getting verified due to inconsistency in details or some problem in OTP.
- Solution: To avoid this, do not verify Aadhar details much in advance, and cross-check on mobile numbers related to an Aadhar are active or not to rectify any error that might be there through the Aadhar authorities also.
D. Migration from Udyog Aadhaar to Udyam Registration
- Problem: The businesses that were carried out through the Udyog Aadhaar registration process were looking forward to migrating their business accounts into the Udyam portal but were getting confused or it was taking quite a long time.
- Solution: The process for migration from Udyog Aadhaar to Udyam can be found by business persons as a guideline in the Udyam portal, and for the migration process, government facilitation centers along with helplines have also been issued.
2. Solution for Easy Registration Process of Udyam:
The Government has provided the best feasible solution so that the procedure of Udyam registration can be made easy. But in this process, it's still a bit of a tough task for some business owners to carry out this procedure. Some of the solutions for this easy process are listed below.
A. Facilitation Centers by the Government
- Facilitation centers of the Ministry of MSME have been set up across India. It is doing registration and migration through the portal in an online mode.
B. Online Tools and Tutorials
- The Udyam portal has all resources developed by the Government in video tutorials and user manuals. The digital tools also let a firm know its eligibility under turnover and investment so that proper information can be given.
C. Industry Associations
- Industry associations conduct sessions and sensitize MSMEs about the government schemes like Udyam. Doubts may be clarified and the entrepreneur may be directed to the right person.
D. Cross-Check the Data while Submissions
- Data scrutiny would prevent errors in the application form. Latest records may be maintained and cross-verification made at the time of submission, thus saving a lot of time and errors too.
E. Compliance Requirements Post-Registration
- Udyam Registration brings many benefits to the enterprise, but that's not all; compliance too has to be addressed in the process. The periodical compliance requirements like the update of financial information on the Udyam portal every six months have to be conveyed to the registered MSMEs.
3. Compliances Guidance for the Registered MSMEs:
After the registration process, MSMEs are eligible for credit support, subsidies, and even tax exemptions. However, there are some compliance requirements to be maintained to continue the status:
Annual Financial Updates: The investment and turnover details have to be updated at the Udyam portal to keep all records in order.
- Policy Up-gradation: The MSME must be well up to date about the changes in the government policy. Eligibility criteria or the procedure for registration may change sometimes.
- Schemes and Welfare Schemes from MSME: There are so many schemes, credit guarantee schemes, and subsidies provided to the registered MSMEs. Therefore, the entrepreneurs are required to study every one of them on the Udyam portal.
Conclusion:
Udyam Registration is one of the many incredible steps that the Indian government has taken to bring some form of uniformity into small and medium businesses. It brings a lot of growth to those such businesses. There are going to be a few problems as well, but most of the such issues can be overpowered and solved through the right preparation. All of this depends on very minute attention through the proper use of support resources and facilities. For MSME owners and entrepreneurs, the case of successful registration under Udyam will come with the doors to government help and furthering the structure for the long-term performance of business units.. It would certainly ease and simplify the process associated with Udyam Registration so that one may take full benefit in the competitive landscape of the Indian economy.
