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The emerging sector in India, namely the micro, small and medium enterprises (MSME) is no stranger to the Udyam Registration portal and the benefits of Udyam Registration for MSMEs.
Launched in July 2020, the portal as of April 2025, has a total of 6,24,00,299 registered Micro, Small, and Medium Enterprises (MSMEs). This total includes 3,57,09,219 registrations through the Udyam portal and 2,66,91,080 through the Udyam Assist Platform (UAP).
- Micro Enterprises: 6,18,94,537
- Small Enterprises: 4,70,899
- Medium Enterprises: 34,863
The online Udyam registration process is simple and paperless and is considered a step towards the holistic goal of MSME digital transformation and growth. Udyam registration also provides MSMEs with a unique identity number and the MSME Udyam registration certificate, which further enables ease-of-doing-business, brings transparency, and a host of financial benefits.
As a MSME business owner if you have not yet registered and downloaded your Udyam registration certificate, there are benefits and opportunities you are missing out on. On that note, let us understand the Udyam portal, the process of online registration, and benefits to MSMEs better.
What is Udyam registration?
Udyam portal is a government initiative that encourages MSMEs to sign-up and self-declare themselves as micro, small, or medium enterprises, in a hassle-free manner. Declaring as MSME, it open doors to available Govt.-backend benefits to a business. Apart from businesses in the manufacturing and service sectors, MSMEs today also include wholesalers and retailers (as of July 2021).
We have a dedicated article written on this – Step-by step MSME Registration Process on Udyam Portal
If you want to check your business eligibility – MSME eligibility: Who is eligible for MSME Udyam registration?
In case you need to check what all documents required for MSME registration, read What documents are required for MSME registration in India?
And, in case you are already registered, but want to Download MSME Certificate Online: Step-by-Step Guide for MSMEs
Benefits of Udyam registration certificate to MSMEs
A commonly asked question is, is Udyam registration necessary?
The portal was set up exclusively to aid MSMEs in their growth journeys, by providing them with support and new opportunities. As such, check your Udyam eligibility, and if eligible it is highly recommended to register your business on the portal and reap the benefits of MSME Udyam Registration in India.
Listed below are some of the benefits of registering your MSME business on the Udyam portal.
- Financial Scheme Benefits
- Government Tenders
- Government Subsidies
- Tax Benefits
- Legal and Operational Benefits
- Marketing and Branding
- Technological Support
- Export Promotion Incentives
Let’s go in detail –
1. Access to government MSME loan schemes
Financing is a common business challenge – for large and small businesses. While banks and NFBCs offer various types of business loans (e.g., working capital loans, loans for purchasing machinery, business expansion loans, special loans for women entrepreneurs etc.), the government too has introduced several MSME loan schemes to address these challenges .
Since these loans are exclusively for MSMEs, they come with low interest rates, minimum documentation requirements, repayment terms and other benefits. In many cases, these are collateral-free loans that do not require businesses to keep any asset as security.
However, if you are keen to avail MSME business loans, it is necessary for you to register your business on Udyam and be officially classified as a MSME.
Some of the government loan schemes for MSMEs include:
- MUDRA loans under Pradhan Mantri Mudra Yojana (PMMY)
- Stand-up India loan
- PSB loan in 59 minutes
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTSME)
- AROG special scheme by SIDBI
Alternatively, you may visit the UdyamiMitra homepage to learn more about MSME government loan eligibility.
2. Apply to government tenders
The MSME Udyam e-certificate can be a great advantage for e-tendering. With the goal to enable more participation from the MSME sector, there are tenders published that MSMEs can apply to (either as a single bidder or sub-contract). This not only creates new business opportunities for MSMEs but also helps them in building their portfolio and creating business credibility. These tenders have simpler requirements and documentation, to enable MSMEs to bid and stand a chance at winning.
To participate in these tenders, and leverage the exemptions and benefits, an Udyam registration certificate is required. For instance, being certified as a MSME, exempts you from paying Earnest Money Deposit (EMD) as per Rule 170 of GFR, and in several cases, the tender fees are also exempted (check tender documents for specifications). Similarly, many tenders come with strict requirements for work experience and financials. However, with a MSME certificate the terms are relaxed enabling you to participate in more tendering opportunities.
When updating details for Udyam certificate generation, there is the option to get registered on the GeM portal (Government e-Marketplace). This means, you can easily get alerts on latest tenders published and bid for relevant ones hassle-free.
Every year, almost 20-25% of government tenders are contracted to MSMEs. With the MSME certificate classifying your business as a legit MSME, your chances of winning government contracts increase.
3. Enjoy government subsidies
As an Udyam registration certificate holder your business can also enjoy government subsidies. A subsidy is an financial aid or economic support that the government provides to MSMEs to release them from financial burdens.
With the Udyam certificate, there are several subsidies you can enjoy as a MSME. You can get a subsidy on:
- Direct tax laws (for the initial year depending on the type of business)
- Electricity bills for your manufacturing plants
- Industrial Promotion activities for promoting your business
- Trademark, patent registration (up to 50%), and barcode registration (up to 75%)
- Credit rating (based on turnover)
4. Avail exemptions and other financial benefits
One of the major advantages of Udyam registration is the exemptions and financial benefits (including tax subsidies, low interest rates, etc.) it offers MSMEs.
The Udyam portal was incorporated to recognise MSMEs and confirm that their enterprises are functional. By linking the platform to other government databases, namely Income Tax and GSTIN, it was further able to gather all financial data and tax details from the respective platforms, making it possible for MSMEs to be transparent about their turnover, taxes paid, GST, and overall business financial health.
Some of the exemptions that MSMEs can avail with the Udyam e-certificate include:
- Overdraft interest fee (1% discount paid)
- Up to 15 years exemption (instead of 10 years) on credit for minimum alternate tax (MAT)
Some of the financial benefits that MSMEs can get include:
- One time settlement fees on non-payment of dues
- Reimbursement of ISO registration fees
- Higher interest rates on delayed payments from other businesses
5. Legal and Operational Benefits
- Simplified Labor Law Compliance: Udyam Registration eases the process of complying with labor laws.
- Easy Access to Licenses & Certifications: Businesses can obtain essential licenses and certifications more easily.
- One-Time Settlement for Overdue Payments: Registered MSMEs can settle overdue payments through a government scheme.
6. Marketing and Branding
- Enhanced Credibility: Udyam Registration boosts business credibility, making it attractive to customers and partners.
- Government Scheme Access: MSMEs gain visibility by accessing tenders and government-backed schemes, enhancing their brand image.
7. Technological Support
- Financial Assistance for Technology Adoption: MSMEs can get subsidies to upgrade machinery and software, enhancing productivity.
- Technical Support for Innovation: Businesses can access resources to develop new products or improve existing ones.
8. Export Promotion Incentives
- Duty-Free Imports: Udyam Registration allows MSMEs engaged in exports to benefit from duty-free imports of raw materials.
- Support in International Marketing: Financial assistance for international trade exhibitions and marketing efforts is available.
How to apply for Udyam registration certificate?
The procedure for Udyam registration is completely online. It is a one-time activity and designed in a way that once a MSME is registered on the platform, any additional data will be reflected/fetched across other government platforms namely Income Tax (IT) and GSTIN.
You can explore the details here on Step-by step MSME Registration Process at Udyam Portal.
Are there any Udyam registration fees?
Whether you are registering as a new business or migrating from Udyog Aadhar (i.e., users with UAM), Udyam registration is free. As a MSME you do not have to pay any amount to register your business on the Udyam portal and get your Udyam Registration Certificate. Read the full detail here – GST Registration Charges and Fees: Details for MSMEs
Getting started with Udyam Registration
Today, the government is introducing several schemes to help MSMEs grow their business. It additionally celebrates India MSME day and has introduced the National MSME award to recognise the potential and contributions of the sector.
With initiatives like low-interest loans, zero collateral loans, MSME tenders, and similar, the government is further endeavouring to create opportunities for MSMEs to accelerate their business growth. Private banks and NBFCs also have relaxed loan eligibility for MSMEs to support them with funds when required.
The Udyam Registration Portal is one such initiatives that has been designed to make it easier for MSMEs to do business. As a MSME owner therefore, if you have not registered your business on the platform, it’s time for you to do so.
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FAQs
What is the main benefit of MSME registration in India?
Is it mandatory to renew MSME registration to continue benefits?
Does MSME registration help in getting bank loans?
Can MSME-registered businesses get subsidies on patent registration?
Is MSME registration required for government tender exemptions?
How does MSME registration help during delayed payments?
Can MSMEs access technology and skill development support?
How does MSME status help during economic crises or pandemics?
Sohini is a seasoned content writer with 12 years’ experience in developing marketing and business content across multiple formats. At Tata nexarc, she leverages her skills in crafting curated content on the Indian MSME sector, steel procurement, and logistics. In her personal time, she enjoys reading fiction and being up-to-date on trends in digital marketing and the Indian business ecosystem.
