The Udyam registration is a very important certificate for entrepreneurs in India. And also Udyam Annexure certificate is introduced to the Udyam registration. The Udyam registration is issued by the Indian government. Through the Udyam registration certificate, entrepreneurs can access the MSME benefits. And the use of MSME benefits is growing businesses and easily getting bank loans. The Udyam annexe is also an important document for every entrepreneur.
The difference between the Udyam registration and Udyam annexe is that the Udyam registration is proof of your business, and the Udyam annexe provides additional details of MSMEs, and the Udyam annexe is also called the “supplementary document”. And the Udyam annexe offers more details related to the business aspects.
What is Udyam registration?
Udyam Registration was introduced in July 2020 to replace Udyog Aadhar. The aim of the new programme was simplifying the registration process for MSMEs and making it more user-friendly. It did just that. Udyam Registration is a self-declaration system, which means that businesses can register themselves without the need for intermediaries. This single platform allows MSMEs to obtain their Udyam registration number, which they can then use to access various government benefits. Udyam has even more benefits than Udyog Aadhar did. There are significant differences are all improvements on the then-existing structure, like this.
Benefits of Udyam registration:
Get bank loans at favourable interest rates:
One of the best advantages of registering for the Udyam registration for your business is accessing the bank loan with lower interest rates. It is important to mention that MSMEs qualify for priority financing, which simplifies access to suitable credit.
Improved availability of government schemes:
The Udyam registration is a ticket to access the government schemes and benefits, such as popular schemes of public procurement policy, capital, guarantee schemes, protection against delayed loans, and credit-linked capital subsidy schemes.
Cost savings:
Whoever has registered for the Udyam certificate enjoys this benefit. The Udyam registration is a great way to reduce a business’s operational costs. Some state governments, for example, provide electricity bill subsidies to Udyam-registered MSMEs, supporting the reduction of operational costs.
Minimum Alternative Tax (MAT):
Minimum Alternative Tax (MAT) serves as an effective tool; it provides the useful mechanism for deferring credit usage and navigating tough problems with ease. The MAT credits allow 15-year credits of Udyam registration.
One-off payment arrangement:
Most MSME owners are not supporting this, but they gain a one-time settlement scheme for all their unpaid amounts. This is another place where the Udyam registration works to your advantage with credit settlement. And also, you can easily access the schemes like the credit guarantee scheme, credit-linked capital subsidy scheme, and public procurement policy to get the perks.
What is the Udyam annexe?
The Udyam annexe certificate is a regulatory document, and it is issued by the Udyam registration certificate. The Udyam annexe certificate provides the additional details of MSME; it simplifies the registration process and improves the scope of the certificate. The Udyam annexe certificate has some key elements, such as the classification of your business, turnover and investment in plant & machinery, employment details and business activity, and financial records that are updated and linked to GST and ITR filings.
Benefits of Udyam Annexure:
Greater visibility:
The Udyam annexe provides business details such as investment, turnover, and nature of operations, increasing the institutional confidence in the business, vendors, and government entities.
Better access to government schemes:
To access the government schemes easily through Udyam Annexure. The government entities are, if you want to sanction the loan, verify the Udyam annexe document. Through the Udyam annexe, you can access the subsidies, collateral-free loans, credit guarantee schemes, and interest subvention programmes.
Simplified the onboarding and validation:
The Udyam annexe helps to simplify the Udyam registration process because the required details are mentioned in a place that is the Udyam annexe. So, this helps to easily verify your Udyam registration application.
Improved paperwork for tenders and contractual dealings:
The Udyam annexe plays the main role in government-related programmes like tenders and contracts and actual dealings. Because the Udyam annexe contains additional details about the business.
Banks and financing support:
If you want to apply for the bank loan, the bankers are asking for the Udyam annexe document for KYC purposes, so it provides the details with clarity and financial thresholds.
You Can Apply for Download Udyam Annexure Certificate Online Through Udyam Portal
Conclusion:
The Udyam registrationd Udyami annexe are both important documents for entrepreneurs. The Udyam certificate is proof of your business, and the Udyam annexe provides the details of the business. The entrepreneurs are applying for the loan or government schemes; the Udyam annexure is necessary for the sanction process. So, the Udyam annexe and Udyam registration contain different benefits. Both certificates help with business expansion and all business growth activities.
