Udyam Registration and Its Effect on Enhancing Entrepreneurship Among the Youth

Entrepreneurship needs to be targeted to bring about economic growth, innovation, and employment since entrepreneurship can lead to the development of all industries. The youth are a majority of the population in India and hence, the promotion of entrepreneurship has become the need of the hour for the growth of the country. Udyam Registration is one of the main programs that has been launched by the Indian government to assist aspiring entrepreneurs.  The Ministry of Micro, Small, and Medium Enterprises introduced Udyam Registration to make it simpler for small firms to register. After registration, MSMEs not only get the privilege of official recognition but also access lots of benefits that make them ready to start their businesses afresh.

In this article, we will discuss how Udyam registration enhances entrepreneurship among youth and how it helps young entrepreneurs obtain financial support, subsidies, and government schemes that help them run their businesses successfully.

Let us know what is Udyam Registration:

Businesses can register as MSMEs by using the Udyam Registration process.  The Udyog Aadhar Memorandum was eventually replaced by Udyam Registration in 2020, to streamline the small business registration process.

A few salient features of Udyam Registration:

• Online Registration: It is a completely online procedure with extremely little documentation.

• Lifetime Validity: Once registered, the Udyam certificate enjoys lifetime validity.

• No Periodical Renewal Required: Unlike older registration, no periodical renewal is needed under Udyam Registration.

• Self-Declaration: Businesses can register without documents.

Young entrepreneurs can easily fill out the Udyam Registration Form from the website and go through the process in some easy steps. Subsequently, they can print the Udyam certificate too for use.

How Udyam Registration Supports Youth Entrepreneurship?

1. Easy Finance and Credit Facility

Money is the largest trap for young entrepreneurs. Banks and institutions never lend money to non-registered businesses because it is extremely risky to lend money to them. But Udyam-registered MSMEs have a lot of benefits which are as follows:

• Collateral-Free Credits: Collateral-free credit is being offered by the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE) to MSMEs.

• Low Rates of Interest: Banks provide exclusive loan facilities on lower rates of interest to Udyam-registered firms.

• Government Subsidies: Governments provide numerous subsidies and financial aid to MSMEs, rendering easy finance for new entrepreneurs to make them start their business endeavors

2. Government Scheme and Subsidy Eligibility

The Udyam-registered firms are the advantages provided by different government schemes for MSME growth. They are elaborated on in detail hereunder.

• Prime Minister's Employment Generation Programme (PMEGP): Offers ffundstfornew industries.

• Credit Linked Capital Subsidy Scheme (CLCSS): Offers subsidy for technology upgradation of capital too.

• MSME Market Development Assistance (MDA): MSME is eligible to participate in trade fairs and exhibitions.

Young entrepreneurs can take advantage of the above schemes by registering in Udyam and downloading the certificate of Udyam registration to avail the benefits of the above schemes.

3. Increased Business Creditworthiness and Market Opportunities

A Udyam-registered MSME enjoys higher market trust, so important for startups to develop customer trust, supplier trust, and investor trust.

• Eligibility for Government Tenders: Udyam registration for some government tenders and government contracts is obligatory.

• Procurement Priority: The government along with target organizations provides priority to MSMEs while making a procurement.

• Improved Business Credibility: Registering through Udyam registration can improve the business credibility of a business firm's investors as well as consumers' perspectives.

4. Lower Electricity Bills

MSMEs under the Act are entitled to relief in terms of exemption and tax relief including:

• Relief Under Direct Taxes: Some MSMEs are exempted from direct taxes under the Income Tax Act.

• Relief in Electricity Bill: Relief in electricity bill is being availed by Udyam-registered companies, thereby lowering their cost of doing business.

• Subsidy for Brand Name and Trademark: Registration of brand name and trademark is subsidized by the government.

All the above incentives bring down the cost of doing business economically to a very great extent so that they can only focus on business expansion.

5. Ease of Doing Business and Easy Compliance

Udyam Registration allows ease of compliance easily with an attempt to ensure that it is convenient for young entrepreneurs so that they can conduct business without hassle.

• No Multiple Registrations: Single-window registration does not put the entrepreneur through the trouble of individual clearances of different departments.

• Ease of Renewal and Updates: The entrepreneur has the facility to easily print the Udyam certificate and update the business online.

• Aadhaar Integration: Aadhaar-linked registration is offered to the entrepreneur to ensure that it is correct and genuine.

6. Technology Support and Digital Enhancement

Technovation has been propelling businesses to success at moments of realization. Udyam Registration allows MSMEs to become eligible to embrace digitalization through:

• Availability of E-Commerce Platform: Empaneled MSMEs are given access to government-empanelled names of platforms such as GeM (Government e-Marketplace).

• Upgradation and Learning of Skills: The governments are offering financial assistance to the owners to learn digital literacy skills under government schemes.

• Financial Assistance to the IT Infrastructure: The MSMEs are being financially assisted in reviving the IT infrastructure and implementing the new technology.

Now let's understand how entrepreneurs can register themselves in the Udyam Registration Portal.

How to register your business in the Udyam Registration Portal?

Young entrepreneurs will be able to take all the advantages by following the step by step below and registering their business in the Udyam Registration Portal.

• First of all, go to the official Udyam Registration Portal.

• Click on the New Udyam Registration section in the navigation bar.

• The Udyam Registration form will appear on the screen.

• Fill in all the details asked by you in the form correctly.

• The verification code will be shown on your screen, enter it in the given box.

• Check mark the declaration and term and condition box.

• Finally, click on the register option.

After paying some nominal amount, you will be sent an OTP, authenticate the OTP and your Udyam registration number will be emailed to your given mail within 24 hours.

Entrepreneurs can even take a print of their Udyam Certificate whenever needed by going to Print Udyam Certificate from the portal.

Conclusion:

Udyam Registration is transforming youth entrepreneurship in India. Through easy registration and providing several financial as well as non-financial rewards, it makes it easier for young entrepreneurs to initiate and grow their businesses. Potential entrepreneurs can gain immensely through Udyam Registration, which grants them anything from easy access to credit to tax relief as well as enhanced market opportunities. With this scheme, India's youth can promote economic growth, employment generation, and innovation. If you are an aspiring entrepreneur who wants to start his/her own business, get registered with Udyam at once and unleash the world of possibilities!