How to Benefit from Udyam Registration as a Franchise Owner?

Understanding Udyam Registration

Udyam Registration is an initiative by the Indian government aimed at simplifying the registration process for Micro, Small, and Medium Enterprises (MSMEs). Introduced on July 1, 2020, it replaced the earlier process under Udyog Aadhaar Memorandum (UAM). This new system provides a more streamlined and efficient way for businesses to register themselves and avail various benefits offered by the government.

What is Udyam Registration?

Udyam Registration is a simple online process where businesses can register themselves under the MSME category. The registration process is entirely digital, making it convenient for business owners to complete the procedure without needing to visit any offices or deal with excessive paperwork.

Who Can Apply for Udyam Registration?

Any business entity, including individuals, partnerships, private limited companies, or franchise owners, can apply for Udyam Registration. The eligibility criteria focus on the investment and turnover limits of the business. Micro enterprises have an investment of up to ₹1 crore and turnover of up to ₹5 crore. Small enterprises have an investment of up to ₹10 crore and turnover of up to ₹50 crore. Medium enterprises have an investment of up to ₹50 crore and turnover of up to ₹250 crore.

Benefits of Udyam Registration for Franchise Owners

As a franchise owner, registering your business under Udyam can unlock several benefits that can help you grow and sustain your business. Let's explore these benefits in detail.

Access to Credit and Financial Support

One of the significant benefits of Udyam Registration is easier access to credit and financial support from banks and financial institutions. MSMEs registered under Udyam can avail various schemes and subsidies offered by the government to support their financial needs.

Easier Loan Approvals

Registered MSMEs often find it easier to get loan approvals from banks. Financial institutions are more willing to lend to businesses that have formal recognition from the government, which reduces their risk perception.

Lower Interest Rates

Many banks offer lower interest rates on loans to registered MSMEs. This can significantly reduce the cost of borrowing and improve the overall financial health of your franchise.

Collateral-Free Loans

The government also offers collateral-free loans to MSMEs through various schemes. This means you can secure funding for your franchise without having to pledge any assets as security.

Government Schemes and Subsidies

The Indian government provides numerous schemes and subsidies specifically designed to support MSMEs. By registering under Udyam, franchise owners can take advantage of these programs to boost their business.

Subsidies on Technology Upgradation

To encourage technological advancements, the government offers subsidies for MSMEs to upgrade their technology. This can help franchise owners invest in better equipment and processes, improving efficiency and productivity.

Export Promotion

For franchises involved in export activities, Udyam Registration can open doors to various export promotion schemes. These schemes provide financial assistance, training, and market access support to help businesses expand their reach internationally.

Reimbursement of ISO Certification Charges

The government reimburses the charges incurred by MSMEs for obtaining ISO certifications. This not only helps in improving the quality standards of your franchise but also enhances its credibility in the market.

Protection Against Delayed Payments

One of the common challenges faced by MSMEs is delayed payments from buyers. Udyam Registration offers protection against such issues by providing a legal framework to address payment disputes.

Quick Resolution of Payment Issues

Registered MSMEs can approach the Micro and Small Enterprises Facilitation Council (MSEFC) to resolve payment disputes. The council helps in the quick and efficient resolution of issues, ensuring timely payments to your franchise.

Interest on Delayed Payments

The law mandates that buyers must pay interest on delayed payments to registered MSMEs. This ensures that franchise owners are compensated for any delays, providing a financial cushion to manage their cash flow better.

Priority Sector Lending

Under the Priority Sector Lending (PSL) norms, banks are required to allocate a certain percentage of their lending to the MSME sector. Udyam-registered franchises can benefit from this regulation as it ensures that banks are more likely to provide loans to them.

Marketing and Promotion Support

The government offers various programs to support the marketing and promotion of MSMEs. These initiatives can help franchise owners increase their visibility and reach more customers.

Participation in Trade Fairs

Registered MSMEs can participate in national and international trade fairs at subsidized rates. This provides an excellent platform for franchise owners to showcase their products and services, network with potential clients, and explore new markets.

Digital Marketing Assistance

The government also provides assistance for digital marketing initiatives. This can help franchise owners leverage online platforms to promote their business and reach a wider audience.

Tax Benefits

Udyam Registration also provides various tax benefits to franchise owners, helping them save money and reinvest in their business.

Exemption from Direct Tax Laws

Registered MSMEs can avail exemptions from certain direct tax laws, reducing their overall tax burden. This can lead to significant savings, which can be utilized for business expansion and growth.

Subsidies on Patent Registration

The government offers subsidies on the registration of patents for MSMEs. This encourages innovation and helps franchise owners protect their intellectual property rights at a lower cost.

Also read:- Benefits of udyam Registration

How to Register for Udyam

The process of registering for Udyam is straightforward and can be completed online. Here is a step-by-step guide to help you through the process.

Step 1: Visit the Udyam Registration Portal

Go to the official Udyam Registration portal (https://udyam-registrations.org/).

Step 2: Enter Your Aadhaar Number

You will need to provide your Aadhaar number to begin the registration process. The Aadhaar number is used to verify the identity of the applicant.

Step 3: Fill in the Details

Enter the required details, such as your name, business name, type of organization, and other relevant information. Make sure to double-check all the details before proceeding.

Step 4: Submit the Application

After filling in all the necessary details, submit the application. You will receive a registration number and a certificate upon successful registration.

Conclusion

Udyam Registration offers numerous benefits to franchise owners, from easier access to credit and financial support to various government schemes and subsidies. By taking advantage of these benefits, you can enhance the growth and sustainability of your franchise. The registration process is simple and straightforward, making it accessible to all business owners. If you haven't registered your franchise under Udyam yet, now is the perfect time to do so and unlock the potential of your business.