{"id":41307,"date":"2022-03-22T11:54:07","date_gmt":"2022-03-22T06:24:07","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=41307"},"modified":"2022-03-22T11:55:22","modified_gmt":"2022-03-22T06:25:22","slug":"udyam-aadhaar-certification-key-benefits","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/udyam-aadhaar-certification-key-benefits\/","title":{"rendered":"Udyam Aadhaar Certification Key Benefits: Explained"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Udyam Aadhaar Certification serves as the\ngrowth-oriented certificate for entities falling under the MSME sector. With\nthis certificate, the entities can claim several benefits, including protection\nagainst delayed payment, access to government tenders, availability of easy\ncredit, etc. This write-up will explore all the benefits available under the\nUdyam Aadhaar Certification.<\/p>\n\n\n\n<p>Before exploring the main topic, let us\nknow some facts about eligibility criteria and the registration process.\nPresently, Udyam Aadhaar Certification is accessible to the following entities\noperating under the MSME sector.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/udyam-aadhaar-certification-key-benefits\/#What_is_Udyam_Registration_and_who_can_obtain_it\" >What is Udyam Registration, and who can obtain it?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/udyam-aadhaar-certification-key-benefits\/#Process_for_Securing_the_Udyam_Aadhaar_Certification\" >Process for Securing the Udyam Aadhaar Certification<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/udyam-aadhaar-certification-key-benefits\/#Benefits_of_Udyam_Aadhaar_Certification\" >Benefits of Udyam Aadhaar Certification<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/udyam-aadhaar-certification-key-benefits\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Udyam_Registration_and_who_can_obtain_it\"><\/span>What is Udyam Registration, and who can obtain it?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Udyam Registration, formerly known as <a href=\"https:\/\/corpbiz.io\/msme-registration\"><strong>MSME registration<\/strong><\/a>, refers to a government-backed registration that primarily benefits the small businesses. \u00a0It is accessible to entities falling under the MSME sector. Technically, it is a unique Identity Number and acts as a recognition certificate for MSMEs.<\/p>\n\n\n\n<p>The types of enterprises who are eligible\nto secure Udyam Aadhaar Certification are shown below:<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong><em>Enterprise Type&nbsp; <\/em><\/strong>\n  <\/td><td>\n  <strong><em>Annual Turnover(in\n  crores)<\/em><\/strong>\n  <\/td><td>\n  <strong><em>Investment<\/em><\/strong>\n  <\/td><\/tr><tr><td>\n  Micro\n  <\/td><td>\n  5\n  <\/td><td>\n  Upto 1 cr\n  <\/td><\/tr><tr><td>\n  Small \n  <\/td><td>\n  5-25\n  <\/td><td>\n  Upto 10 cr\n  <\/td><\/tr><tr><td>\n  Medium\n  <\/td><td>\n  25-250\n  <\/td><td>\n  Upto 50cr\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Process_for_Securing_the_Udyam_Aadhaar_Certification\"><\/span>Process for Securing the Udyam Aadhaar Certification<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol><li>Login to the Udyam Aadhaar Portal or create a new account by completing the OTP verification process.<\/li><li>On the home page, click on the option called &#8220;Apply for new registration.&#8221;<\/li><li>Start filing the e-form and include the details such as registration number, types of company, number of workers, detail of person-in-charge, so on and so forth.<\/li><li>Next, upload the <strong>PAN<\/strong><sup><a href=\"https:\/\/www.onlineservices.nsdl.com\/paam\/endUserRegisterContact.html\"><strong>[1]<\/strong><\/a><\/sup> and Aadhhar of the company.<\/li><li>Click on the submit button.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_Udyam_Aadhaar_Certification\"><\/span>Benefits of Udyam Aadhaar Certification<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following are the benefits rendered under\nby the government under Udyam Aadhaar Certification:&nbsp; <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Protection against delayed payment<\/h3>\n\n\n\n<p>Most entities under the MSME sector\ncontinually face inconsistent cash flow, which in some cases, creates a\nliquidity crunch for the company. The delayed or non-payment from vendors and\nsuppliers is the primary reason for such mishaps. The Indian government has\ntaken this concern seriously and came out with rules that prevent defaulters\nfrom making such defaults. <\/p>\n\n\n\n<p>According to the new rules, the vendors,\nsuppliers, or other persons accountable for payment issues cannot hold the\npayment for more than 15 days from the date of the business transaction.\nViolation of such rules could compel the defaulter to pay interest in the form\nof a penalty. This is by far one of the most productive benefits of Udyam Aadhaar\nCertification.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Open Access to Government E-tenders<\/h3>\n\n\n\n<p>Another vital benefit of Udyam Aadhaar\nCertification for MSMEs entities is open access to the Government E-tender\nportal. The Government e-tendering has never been available to small businesses\na decade back. But after the advent of the MSMS Act, this problem has been\nresolved. Entities with Udyam Aadhaar Certification can approach synched\ngovernment portals that entirely deal in tendering affairs. The GOI has also\nrelaxed the conditions relating to the minimum turnover criteria and earnest\nmoney deposit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Access to collateral-free loans <\/h3>\n\n\n\n<p>GOI launched the Credit Guarantee Fund\nScheme for rendering collateral-free credit to MSMEs. Both the prevailing and\nnew entities have access to this scheme. The Ministry of MSME, GOI, and Small\nIndustries Development Bank of India formed a trust known as Credit Guarantee\nFund Trust for Micro and Small Enterprises (aka CGTMSE) to ensure nationwide\nimplementation of this scheme for MSME.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Exemption under Direct Tax Laws<\/h3>\n\n\n\n<p>Enterprises with the Udyam Aadhaar\nCertification can access Direct Tax Exemption in the starting year of\noperation. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Subsidy on NSIC Performance and Credit ratings<\/h3>\n\n\n\n<p>Enterprises that have the Udyam Aadhaar\nCertification can apply for Subsidies on NSIC Performance and Credit ratings.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">50% subsidy for patent registration<\/h4>\n\n\n\n<p>Enterprises with the Udyam Aadhaar\nCertification are eligible to avail 50 per cent subsidy for patent registration\nby filing a prescribed application with authority concerned.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Reimbursement of ISO Certification<\/h3>\n\n\n\n<p>Enterprises with the <a href=\"https:\/\/corpbiz.io\/learning\/new-enterprise-under-udyam-registration\/\"><strong>Udyam Aadhaar Certification<\/strong><\/a> can reimburse ISO registration charges by filing a prescribed application with the respective authority.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Concession in electricity bills<\/h3>\n\n\n\n<p>Enterprises with the Udyam Aadhaar\nCertification are eligible to access Concession on the electricity bill. For\nthis purpose, the company needs to file a prescribed application with the\nrespective electricity department.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">15% CLCSS subsidy to purchase fully<\/h3>\n\n\n\n<p>The Ministry of MSME has rolled out a\nscheme called Credit Linked CGSTI Subsidy Scheme (CLCSS) for the purpose of\ntechnology up-gradation of Micro and Small Enterprises. The GOI has already\namended the scheme. The revised scheme aims at rendering technology\nup-gradation of MSEs by facilitating 15 per cent capital subsidy (maxed out at\nRs 15 lakhs) for the procurement of Plant and Machinery.<\/p>\n\n\n\n<p>The maximum threshold of loan for\nestimation of subsidy under this scheme is Rs 100 lakhs. Up till now, the\nscheme has been assessed by thousands of established\/improved technologies\nspanning across 51 sub-sectors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Reduction in rate of interest from banks<\/h3>\n\n\n\n<p>The interest rate for entities with Udyam\nAadhaar Certification is lower than other entities. Certain targets are\nunderpinned for banks&#8217; lending to the MSEs. The banks have to accomplish a 20\nper cent growth in MSEs, 10 per cent annual growth in the micro-enterprises\naccount and 60 per cent of overall lending to MSEs.<\/p>\n\n\n\n<p><strong>The banks should mandatorily comply with the following.<\/strong><\/p>\n\n\n\n<p><strong>1.<\/strong> 40 per cent of the overall advances must go to MSEs\ninvolved in manufacturing having investment in plant and machinery up to ten\nlakh rupees and for service enterprises having investment in equipment up to\nfour lakh rupees<\/p>\n\n\n\n<p><strong>2.<\/strong> 20 per cent of the overall advance to MSEs should go to\nmanufacturing entities that have above ten lakhs rupees till twenty-five lakh\nrupees investment in the plant and machinery and for service entities that have\ninvestments in equipment above four lakh rupees<\/p>\n\n\n\n<p><strong>3.<\/strong> To simplify, 60 per cent of the advances should be routed\nto the micro-enterprises.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Udyam Aadhaar Certification brings plenty of benefits for the small business owner and helps them keep on track during financial adversity. The government of India is making every possible effort to widen the access of this scheme by encompassing more small scale units under its ambit. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/msme-udyam-registration-portal-everything-you-need-to-know\/\">MSME Udyam Registration Portal: Everything you Need to Know\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Udyam Aadhaar Certification serves as the growth-oriented certificate for entities falling under the MSME sector. With this certificate, the entities can claim several benefits, including protection against delayed payment, access to government tenders, availability of easy credit, etc. This write-up will explore all the benefits available under the Udyam Aadhaar Certification. Before exploring the main [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":41313,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[176],"tags":[2191],"acf":{"service_id":"71"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":3515,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41307"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=41307"}],"version-history":[{"count":12,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41307\/revisions"}],"predecessor-version":[{"id":41321,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41307\/revisions\/41321"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/41313"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=41307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=41307"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=41307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}