UDYAM REG is a registration process introduced by the Indian government for micro, small, and medium enterprises (MSMEs) under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006. It is an online registration portal where MSMEs can register themselves and obtain a unique Udyam Registration Number (URN). Here is an overview of UDYAM REG and its benefits:

Definition of MSMEs:

The UDYAM REG is defined based on the investment in plant and machinery or equipment (for manufacturing enterprises) and investment in equipment (for service enterprises). The revised definition, effective from July 1, 2020, is as follows:

• Micro Enterprises: Investment up to Rs. 1 crore and turnover up to Rs. 5 crore.
• Small Enterprises: Investment up to Rs. 10 crore and turnover up to Rs. 50 crore.
• Medium Enterprises: Investment up to Rs. 50 crore and turnover up to Rs. 250 crore.

Benefits of UDYAM REG:

• Legal Recognition: UDYAM REG provides legal recognition to MSMEs and avails them of benefits and schemes provided by the government.
• Easy Access to Credit: UDYAM registration enables MSMEs to access credit facilities with lower interest rates from banks and financial institutions.
• Collateral-Free Loans: Under the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS), MSMEs with UDYAM registration can avail collateral-free loans.
• Government Tenders: UDYAM-registered MSMEs receive preference in government procurement tenders
• Subsidies and Incentives: MSMEs with UDYAM registration can avail subsidies, incentives, and exemptions provided by the government for promotion and development.
• Protection against Delayed Payments: UDYAM-registered MSMEs are protected under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006, which ensures timely payment for goods and services supplied.
• Support and Development: UDYAM REG allows MSMEs to participate in various skill development and training programs provided by the government.