Self-Help Groups (SHGs) are helping millions of Indian women and small business owners become self-sufficient. They not only make their members independent in terms of finances but also create local jobs. Yet, to fully enjoy the benefits of government schemes and incentives, something is extremely important: Udyam Registration.

In this article, we will learn why self-help groups are required to get Udyam Registration, its advantages, and how to get it.

Udyam Registration: What Is Its Meaning?

The Ministry of Micro, Small, and Medium Enterprises (MSME) of the Government of India started the online registration platform called Udyam Registration.

It gives any small business, organization, or group a recognized business identity.

They get the advantages of government schemes, credit facilities, and subsidies as MSMEs.

Why is it that self-help groups have to need Udyam registration?

SHGs are usually employed in small-scale manufacturing, handicrafts, food processing, sewing, dairy, and other local businesses. But they do not get many government benefits since they are not officially recognized.

Udyam registration benefits the SHGs with the following:

1. Benefits of Government Schemes

SHGs registered with Udyam have fast access to both the national and state MSME programs, such as:

• Prime Minister's Employment Generation Programme (PMEGP)
• Micro Units Development Scheme
• Interest Subsidy Schemes
• Women Entrepreneurship Programme

2. Convenient Bank Loans

With Udyam registration, banks offer SHGs collateral-free loans without the requirement for numerous documents.

This enables the group to raise capital to scale up its business.

3. Access to Government Tenders

Most government departments offer preference to MSME-registered units.

This enables SHGs to market their products or services directly to government organizations.

4. Brand Recognition and Credibility

The Udyam Certificate download provides the SHG with an official identity.

This enhances the credibility of the group with customers, banks, and government authorities.

5. Technical and Training Support

The Ministry of MSME arranges training, workshops, and technology upgradation schemes from time to time for registered units.

SHGs can avail themselves of these schemes to enhance production capacity and quality.

How do Self-Help Groups register for Udyam?

• The Udyam Registration is totally online.
• SHGs can fill it from home.

Documents needed for registration:

• Aadhaar card of the group representative
• PAN card (for the group or members)
• Business address of the group
• Mobile number and email ID
• Bank account details
• Work details (e.g., production, service, trading, etc.)

The steps for the registration process are as follows:

1. Go to the official Udyam Registration website
2. Choose the "New Udyam Registration" option.
3. Authenticate through Aadhaar number and OTP.
4. Fill in the group details, work details, and PAN.
5. Upon form submission, a Udyam Registration Number (URN) and certificate will be provided. 

The certificate is dispatched through email and may be utilized for any future schemes or benefits.

What needs to be done by SHGs post-registration?

Upon Udyam registration, the group should update its business activities and financial status.

Also:

• Keep updating data on the Udyam Portal periodically.
• Obtain information regarding new schemes from the MSME website.
• Keep approaching your local bank and District Industries Center (DIC).

Key advantages of Udyam registration for SHGs at a glance

• Advantages from government schemes such as PMEGP, subsidy, and grant schemes
• Easy access to credit, reduction of interest and collateral-free loans from banks
• Expansion of business, access to government tenders and e-marketplaces (GeM)
• Legal status as an MSME, authorized business recognition
• Training and facilitation, government support, and technical advice

Why is it the "first step towards success" for Self-Help Groups

The idea of SHGs is self-reliance through collaborative effort.

But only if the group is made a part of the formal economic system will this self-reliance be sustainable.

Udyam registration brings the group into contact with the government, provides financial possibilities, and sets the stage for bigger business ideas in the future.

It is not simply a registration, but an "economic identity card" for the group.

Conclusion

All self-help groups involved in any economic or business activity need to get Udyam registration done.

Not only does this make the group eligible for government schemes, but it also makes it a robust and self-sufficient business.

If your SHG is still unregistered, register now by logging into the Udyam registration portal and let your group's identity be established by the government.