Running a small business comes with many challenges, limited funding, lack of exposure, and stiff competition. But suppose your business is registered as a Micro, Small, or Medium Enterprise (MSME) under the Udyam Registration portal. In that case, you can unlock a host of government benefits that can ease your journey.
In this article, we’ll explain how Udyam Registration works and how you can use it to access government support like subsidies, loans, certifications, and more.
What Is Udyam Registration?
Udyam Registration is a government registration process introduced by the Ministry of MSME, Government of India. It is meant for businesses that fall under the micro, small, or medium enterprise category. Once registered, you receive a Udyam Registration Number (URN) and an official certificate that identifies your business as an MSME.
This recognition helps you access schemes, benefits, and subsidies created by the government exclusively for small and medium-sized businesses.
Benefits of Udyam Registration at a Glance
Here’s a quick look at the key government support that becomes available to you once your business is Udyam registered:
- Access to Subsidies
- Collateral-Free Loans
- Lower Interest Rates
- Tax Benefits
- Government Tenders Reserved for MSMEs
- Reimbursement for ISO Certifications
- Support for Trade Fairs and Exhibitions
- Ease in Getting Licenses and Approvals
Now, let’s dive into how you can actually make use of these benefits.
1. Get Subsidies for Loans and Machinery
Udyam-registered businesses are eligible for subsidies under several schemes. One of the most popular is the Credit Linked Capital Subsidy Scheme (CLCSS).
- What it offers: A 15% subsidy on the cost of new machinery or tech upgrades.
- Who can apply: Manufacturing and service sector MSMEs
- How to apply: After Udyam registration, you can apply through your bank or financial institution under this scheme.
2. Access to Collateral-Free Loans (CGTMSE Scheme)
Through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), the government allows banks to give collateral-free loans to MSMEs.
- Loan amount: Up to ₹2 crore
- Risk coverage: Government assures the bank of 75–85% of the loan in case of default
- Eligibility: Only available to Udyam-registered MSMEs
This is ideal for startups or small businesses with limited assets.
3. Participate in Government Tenders
Udyam registration makes you eligible for exclusive access to government procurement under the Public Procurement Policy for MSMEs.
- Special benefits:
- 25% of all central government purchases are reserved for MSMEs.
- 4% out of this is reserved for SC/ST-owned MSMEs.
- 3% is reserved for women entrepreneurs.
- No requirement of EMD (Earnest Money Deposit) for MSMEs in many tenders.
You can use your Udyam certificate to apply for these tenders on the GeM portal or other e-tendering platforms.
4. Avail Reimbursement for ISO Certification
To help improve quality standards among Indian MSMEs, the government offers reimbursement of expenses incurred during ISO certification.
- Eligibility: Must have valid Udyam Registration
- Benefit: Reimbursement up to 75% of certification cost or a fixed amount (whichever is lower)
- How to claim: Submit claim through the MSME Development Institute (MSME-DI) of your region
5. Apply for Patent and Trademark Subsidies
If you're launching a new product or want to protect your brand, the government offers up to 50% subsidy on patent registration and trademark filing fees.
- Requirement: You must be Udyam registered
- Support offered: Legal and financial support from IP facilitation centers
This is especially helpful for tech startups, manufacturers, and export-oriented businesses.
6. Take Part in National and International Trade Fairs
The NSIC (National Small Industries Corporation) and MSME Ministry organize fairs and exhibitions to promote MSMEs.
- Benefit:
- Free or subsidized stall rent
- Free travel and accommodation for select events
- Marketing assistance and networking opportunities
Udyam registration is often a mandatory requirement for applying to these programs.
7. Avail Tax and Electricity Benefits (State-Specific)
Many state governments provide electricity bill concessions, VAT exemptions, and property tax reliefs to MSMEs.
- Condition: You need to present your Udyam Certificate
- Where to check: Visit your state’s MSME department website or district industries center (DIC)
8. Easier Access to Licenses, Permits, and Registrations
With a Udyam certificate, you get faster approvals for:
- Factory licenses
- Pollution control certifications
- FSSAI registration for food businesses
- Import Export Code (IEC) for exporters
The Udyam ID acts as a proof of business and helps streamline many application processes.
9. Avail Technology and Quality Upgradation Support
Under the ZED (Zero Defect Zero Effect) scheme, MSMEs are encouraged to improve their processes and reduce environmental damage.
- Support:
- Subsidies for quality certification
- Help with lean manufacturing
- Energy efficiency support
Only Udyam-registered units are eligible to join the ZED certification program.
How to Register on Udyam Portal
Follow these steps:
- Visit the Website – Go to the official Udyam Registration portal.
- Enter Details – Fill in your name, Aadhaar, PAN, and basic business info.
- Pay Fee – Use UPI, card, or net banking to pay a small online fee.
- Get OTP – Receive a call and an OTP on your mobile.
- Submit OTP – Enter the OTP to confirm your application.
- Get Certificate – Your Udyam Certificate will be emailed to you.
Note: You can also Print Udyam Certificate from our website
Conclusion
Getting Udyam Registration is more than a formality; it’s the first step toward unlocking a wide range of government benefits designed to support small and growing businesses in India.
Whether you’re seeking funding, certifications, market exposure, or operational support, your Udyam certificate is the key. Don’t let valuable subsidies and schemes go unused—register your business today and take full advantage of what the government has to offer.
