UDYAM Registration Overview
The government has introduced the new Udyam Registration to replace the older SSI and Udyog Aadhar registrations from July 1, 2020 onwards. Organizations which are engaged either in manufacturing or production or processing or preservation of Goods OR in the providing or rendering of services are eligible for registration under the new Udyam Registration. In other words, the enterprises which are engaging only in trading i.e. buying, selling importing, exporting of Goods are not eligible for applying for Udyam Registration.
The applicability of the Udyam registration is for Mecro, small and medium sized organizations. The categorization is summarized below:
Benefits Of UDYAM Registration
Some of the benefits available post registrations under Udyam aresummarized below. Apart from those listed below, there are many other benefits provided by the different govt. bodies for specific industries.
- After registering under Udyam, the applicant will receive the benefits of all the government schemes such as an easy loan, loan without guarantee, loans with subsidized rates of interest etc.
- The applicant will receive financial support for participating in foreign expos to showcase their products.
- Registration would facilitate hassle-free opening of current bank accounts in the name of the business.
With the recent thrust on development of SSI / UDYAM by Govt of India, registration under Udyam has become very important. The primary reason is the ability to avail the benefits being provided by the Govt.