Understanding the Importance of an MSME Certificate

Did you know that PIB (Press Information Bureau), India's nodal agency to release official information, has trends highlighting the contribution of MSMEs in India's staggering growth? In fact, with the growing number of MSME businesses in India, a total of 20.39 crore employment was recorded.

These numbers not only highlight the nation's growth, but tracking them also helps in various other areas. Thanks to the Udyam certificate registrations, it is possible to keep a tab on them. Today, let's go through the intricate details of this certificate for Micro, Small, and Medium Enterprises and its importance.

What is an Udyam Certificate and Why You Should Have It?

Udyam or MSME certificates are the same. They are government documents issued to Micro, Small, or Medium Enterprises when they complete the Udyam registration via the Ministry of MSMEs' given platform. They are basically self-declarations about your business's status.

Once you understand what an MSME certificate is, come to the reasons for having one. You must know that when starting a new business or owning one, there are several responsibilities and legal compliances. Here are the reasons why you should have an Udyam or MSME registration certificate:

1. Access to Government Schemes: Pursuing an Udyam registration will open doors to various government schemes, subsidies, and incentives exclusively for MSMEs.

2. Tender Accessibility: Many government tenders and contracts are reserved for MSMEs. Udyam registration is mandatory for participating in these opportunities.

3. Borrowing Becomes Easier: Lenders prioritise loans to MSMEs, and having an Udyam registration certificate can expedite loan approvals and secure better interest rates.

4. Business Expansion: The certificate establishes your MSME business as a credible entity in the market, thus building a reputation. This translates to attracting potential customers and partners.

5. Legal Protection: It provides legal recognition to your MSME business and helps in resolving any kind of dispute.

6. Market Advantage: Being an MSME with an Udyam certificate can offer advantages in terms of taxation, subsidies, and government support.

7. Ease of Doing Business: Udyam registration simplifies various business processes and interactions with government authorities.

8. Networking Opportunities: It connects you with a larger MSME community, facilitating knowledge sharing and collaboration.

9. Employee Benefits: Some states offer incentives or benefits to MSME employees, which can be availed of with an MSME Udyam certificate.

10. Data Analytics: The data collected through an Udyam registration helps policymakers understand the MSME sector better and formulate supportive policies.

How to Apply for an Udyam Certificate?

Just as your UIN number, MSMEs also have a 12-digit unique registration number (URN), which is allotted upon applying for this certificate. If you're wondering how you can get it, here’s a brief overview of how the process goes:

1. Visit the official government registration portal, which you can find under the name Udyam registration.

2. The portal requires the Aadhaar number of the proprietor, managing partner, or karta for different business structures.

3. Enter all the required information about your MSME business. This includes the business’s registered name, address, nature of activity, and investment details.

4. Since the MSME certificate is a self-declaration, there’s no need to attach any supporting documents.

5. The next step is to generate the OTP, enter it successfully, and submit your details.

6. Once you have successfully applied for it, you will receive the certificate’s online version. Simply download the MSME Udyam certificate, and you can also take a printout to keep a hard copy.

Get Your MSME Business Registered Today!

Having an Udyam or MSME certificate goes beyond formalising your business or getting it registered. It unlocks a wealth of growth opportunities and financial support. Loans specifically designed for registered MSMEs come with lower interest rates and quicker approval times, making it easier to invest in and expand your business. If you're looking to position your business for success, getting your MSME certificate is a crucial step towards achieving that goal.

Before You Go…

If you're considering financial support for your business, a loan on KreditBee might be the perfect solution. Here’s what you need to know:

1. Loan Amounts: Choose from loan amounts ranging between ₹1,000 and ₹4 Lakhs. Select an amount that best aligns with your business needs and objectives.

2. Interest Rates: Enjoy competitive interest rates ranging from 18% to 29.95% per annum. These rates are tailored to fit your profile and the loan amount you choose.

3. Repayment Tenures: Flexible tenures ranging from 3 months to 24 months are available. Pick a repayment period that suits your cash flow and business cycle.

Frequently Asked Questions