Udyam Registration is a government initiative in India aimed at promoting and supporting small and medium-sized enterprises (SMEs). It was formerly known as the Udyog Aadhaar registration. This registration is essential for small businesses to avail various benefits and incentives provided by the government.
Access to Government Schemes: Udyam-registered businesses are eligible for various government schemes and subsidies, which can significantly reduce their operational costs.
Easier Bank Loans: Udyam Registration is often required when applying for loans or credit facilities from banks or financial institutions. Having this registration can make the loan approval process smoother.
Preference in Government Tenders: Udyam-registered businesses may receive preference in government procurement and tenders, giving them a competitive advantage.
Protection under MSMED Act: Registration provides statutory recognition and protection under the Micro, Small, and Medium Enterprises Development (MSMED) Act.
Any micro, small, or medium-sized enterprise (MSME) engaged in manufacturing or providing services can apply for Udyam Registration. The classification of an enterprise as micro, small, or medium depends on the investment in plant and machinery or equipment and turnover.