MSMEs shape the backbone of the Indian economy and contribute significantly toward growth, employment, and innovation in almost all sectors. The Indian government is now trying to make the MSME sector more streamlined and formalized through Udyam Registration. This paper deals with the impact of Udyam Registration on MSME growth in India; the benefits, and process of MSME registration, along the importance of its registration in the present scenario of competition.
1. Impact on the Growth of MSME because Udyam Registration proved to be a game-changer in the MSME segment in the following terms and their impact on the growth:
Enhanced Credits and Ease Financial Facilitation.
MSMEs registered under the scheme can avail themselves of credit facilities supported by the government. The benefit has been there at reduced prices and is also largely devoid of any collateral requirements. In small-scale businesses, it is pretty much necessary because that enables them to use their money for investing in infrastructure, technological projects, and expansion work better.
a) Easy Compliance and Tax Benefits
Udyam Registration streamlines the tax filing procedures for MSMEs besides providing them with exemptions of various direct taxes. So, in all, this becomes less punitive and much more on growth and not on paper works for entrepreneurs.
b) Markets and Procurement Activities
Prized Government procurement is provided to registered MSMEs; this further enables them to get contracts besides extended market access and expansion.
Government Support.-This will boost business and have a healthy source of income for MSME, hence increasing competition as well as increasing employment
c) Protection against delayed payments
Delayed payment is one of the significant problems that MSME is facing; it is mostly by larger organizations as this Udyam Registration offers protection in terms for MSME concerning the MSME Development Act presses extreme force in bringing about payments to the book before or even ahead of scheduled time that makes MSME a debt-free organization which is not faced with delay pressure
Benefits of Business Function Resiliency Gained from Udyam Registration
Udyam Registration offers MSME immediate resilience in terms of business functioning:
Government Incentives and Subsidies
Most of the government incentives that are offered to the registered MSMEs, like the power tariff subsidy, capital investment subsidy, and tax exemption, are not accessible for the unregistered ones.
d) Tenders and Bids Offers
Udyam Registration empowers MSMEs to tender with much more relaxed terms of experience and turnover compared to traditional and formal government tenders.
e) Technology and Infrastructure Development
The government also promotes both technological as well as infrastructural upgradation through the use of Udyam, which is a portal for both technological and infrastructural improvement. Quality standard promotion is also done with the use of the ZED scheme, i.e. Zero Defect, Zero Effect.
f) Relaxation on Trademark and Patent Charges
Relaxation up to 50 percent in trademark or patent charge will also be given for the Registered MSMEs.
2. Procedure for Udyam Registration: The procedure has been simplified and is accessible.
The process for which Udyam Registration is focusing is very simple. It involves minimal documentation with smaller registration fees. A short walkthrough of its procedure shall be as follows:
Portal for Udyam Registration-Visit https://udyogregistration.in/. MUST produce an Aadhaar Number during registration.
Share business information with PAN, GSTIN if available, and all other relevant details
It is submitted online. Once approved, the government issues a Udyam Registration Number and certificate
The registration certificate of Udyam is lifetime. It can be used while the enterprise remains operational. The update of the type or the scale of the business will only require that this information has to be reflected with registration data correct
3. Challenges Faced by MSMEs Without Udyam Registration
If it doesn't get itself Udyam Registered, then a whole array of limitations would be on the growth; which may comprise of points as follows;
a) Credit limitation
An MSME is not going to get itself registered under any formative financial institute, which shall grant loans and therefore relies upon informal, high-interest credits binding up further growth.
b) Nonavailability of Government schemes
This service, facility, and benefit with which the government is pushing forward are accessible to each Udyam, and with this, they leave something in non-registration and remove it from some extremely facilitating.
c) Non- Available Business Opportunities
The Entry point for the Government to get tenders, subsidization, and preference through procurement that restrain MSMEs from expanding in a new market is A registered Udyam.
Conclusion: Why Udyam Registration is the Need of Time for MSME Growth
Udyam Registration offers a window into the Indian economy as a survival opportunity for MSMEs. Access to credit and government tenders to ease tax compliance empowers MSMEs against limited resources and the financial constraints that MSMEs face. The very initiative allows proper recognition with support to enable them to contribute maximally toward economic development in India.
It is much more than an exercise in the administration of any MSME owner, an entrepreneur, or the founder of a start-up. Udyam registration would be part of strategic moves that unlock growth opportunities as well as enhance resilience. Taking up this initiative will be the first step to long-term sustainability, success, and impact on the economic future of India.
