Nowadays, in the competitive business scenario, having your suppliers registered under the MSME (Udyam) scheme can yield immense benefits. Be you a business owner, procurement manager, or entrepreneur, realizing the significance of MSME registration and its impact on your supply chain is imperative.
What is MSME (Udyam) Registration?
The Micro, Small, and Medium Enterprises (MSME) registration, previously known as Udyam Registration, is a government scheme in India that seeks to support medium and small enterprises. It avails benefits such as reduced costs of access to credit, subsidies, and government schemes.
Why You Should Verify Your Supplier’s MSME Status
- Cost Reduction and Financial Advantages
MSME-registered suppliers tend to benefit from lower-cost funding, which can translate into improved prices for their customers.
Government incentives such as subsidies and tax benefits can result in cost savings for both suppliers and customers.
- Priority in Government Tenders
If your business deals with government contracts, working with MSME-registered suppliers can increase your chances of securing tenders with preference given to MSMEs.
- Protection Under the MSME Act
The MSME Act offers safeguards for delayed payments so that suppliers can get paid within 45 days. This results in a stabilized supply chain.
- Access to Quality and Compliance Standards
MSME-registered suppliers tend to comply with standard quality parameters because of government mandates, resulting in improved product and service quality.
How to Verify If Your Supplier is MSME Registered?
Step 1: Ask for Their Udyam Registration Certificate
Request their Udyam Registration Certificate copy to confirm that they are indeed MSME entities.
Step 2: Udyam Portal Verification
Use the official Udyam Registration portal and plug in their Udyam Registration Number (URN) to ensure their credentials stand valid.
Step 3: MSME-Benefits Indicator in Invoices
A few suppliers indicate MSME-specific advantages in their bills, including concessions on GST or payment terms applicable as per MSME norms.
Conclusion
verifying if your suppliers are MSME (Udyam) registered can benefit your business in a variety of ways, ranging from cost benefits and financial health to government compliance. With MSME-registered suppliers, you can create a more robust and efficient supply chain and reap many business benefits.Are your suppliers MSME registered? It’s time to verify and avail of the advantages that accrue with it!
