Benefits of Udyam Registration (Elaborated Guide)
Udyam Registration offers a range of government-backed incentives to support and grow MSMEs in India. Once registered, enterprises become eligible for financial support, legal protection, and increased market access.
1. Easy Access to Bank Loans at Lower Interest Rates
Registered MSMEs can avail collateral-free loans under the Credit Guarantee Fund Scheme (CGTMSE). These come with low interest rates and flexible repayment terms.
👉 Apply here: CGTMSE – Credit Guarantee Fund Scheme
2. Subsidy on Patent and Trademark Registration
Get up to 50% subsidy on patent and trademark filing under the IPR scheme.
📄 Learn more: IPR Support Scheme
3. Protection Against Delayed Payments
MSME Development Act mandates payment within 45 days. Late payments attract compound interest at 3x bank rate.
🚨 File complaints at: MSME Samadhaan
4. Concession on Electricity Bills
Many state governments offer rebates or concessions on electricity tariffs for MSMEs.
5. Eligibility for Government Tenders
MSMEs are given priority in procurement and exempted from EMD under Public Procurement Policy.
🛒 Access tenders: Government e-Marketplace (GeM)
6. Reimbursement for ISO Certification
Claim back expenses for ISO 9001/14001/HACCP under the Quality Management Standards Scheme.
✅ Details here: ISO Reimbursement Scheme
7. Priority Sector Lending
All banks must allocate a portion of lending to MSMEs under the RBI Priority Sector Lending guidelines.
8. Income Tax and Other Financial Exemptions
Enjoy tax relief under schemes like Section 44AD and exemptions on capital gains.
• Visit MSME Ministry website regularly
• Use CHAMPIONS Portal for grievances and support
• Follow your state MSME department for local programs
Benefits by Enterprise Type
- Manufacturers: CGTMSE Loans, IPR Subsidy, ISO Reimbursement, Electricity Discounts, GeM Tenders, RBI PSL
- Service Providers: Loans, IPR Support, Samadhaan, Tender Benefits, Tax Relief (44ADA)
- Traders: PSL Loans, Delayed Payment Protection, EMD Waiver in GeM
Note: IPR, ISO & power subsidies usually do not apply to traders.
📌 Quick Access Links
| Portal | Purpose | Link |
|---|---|---|
| Udyam Registration | MSME Registration | udyamregistration.gov.in |
| CHAMPIONS Portal | Support, Mentorship | champions.gov.in |
| MSME Samadhaan | Delayed Payments | samadhaan.msme.gov.in |
| GeM | Government Tenders | gem.gov.in |
| CGTMSE | Collateral-Free Loans | cgtmse.in |
| MSME Schemes | All Schemes | msme.gov.in |