Udyam Verification

Udyam verification is the process of checking the legitimacy of the enterprise through the Udyam Registration Number. Udyam verification confirms that the Micro, Small, or Medium enterprise is legitimate and operational. The Udyam-registered companies are eligible to get benefits that come under the MSME classification.
Udyam Verification helps financial institutions and investors avoid working with fraudulent companies and losses. Here, in this blog, we will discuss Udyam verification in detail. So, stay tuned until the end.

What is Udyam Verification?

Udyam Verification refers to checking the legitimacy of the SME business. It involves the verification of Udyam registration certificate details. Udyam Verification confirms the information is correct and accurate.

This process involves checking the Udyam Number and related details by comparing the original documents through the authentic database. Udyam registration and verification are important for SMEs to access the benefits.

Investors and financial institutions get trust in the enterprises by verifying the Udyam status. After getting the verified status they get surety, whether to invest in the business or not. It also helps them to detect fraudulent companies and avoid financial fraud.

Essential Details You Should Have Before Verifying Udyam Registration:

You need to have these details if you want to verify the Udyam Registration verification,

  • Udyam Registration Number
  • PAN Card
  • Bank Account Details
  • Business Details
  • Aadhaar Card

Differences between Udyam Registration and Udyam Verification

Udyam registration and Udyam verification sound a little bit similar to each other due to the presence of Udyam in each phrase. But both of them have different roles. Udyam registration means MSMEs registering themselves under the Udyam so they can get the official validity. On the other hand, Udyam verification means verifying the Udyam certificate and registration details of MSMEs. Udyam verification is important for financial institutions and investors in checking the legitimacy of a company.

Step-by-Step Guide to Verifying Udyam Registration:-

Here is a simple list of steps that you can follow to verify the Udyam registration status of an enterprise. 

  • Step 1: Visit the official Udyam registration portal (www.udyamregistration.gov.in).
  • Step 2: Click the ‘Print & Verify” tab on the home page. In the dropdown menu bar click on the verify Udyam registration number. After that, you will be redirected to the verification page.
  • Step 3: Enter the Udyam Registration Number and fill in the captcha.
  • Step 4: Click to verify and the Udyam status will display on the screen.

Verify Udyam Registration Through API:

Many APIs are available online that you can use to verify the Udyam registration certificate status and details. API makes the verification process easy and efficient. However, choosing a trusted API service provider that provides accurate information is difficult. If you are seeking a trusted API service provider you can go for a company like Surepass. It provides data from authentic databases for verification and uses strong protocols to take care of the sensitive data of the customer.

It offers Udyam Verification APIs like Udyam Registration Check API and Udyam Certificate Verification API. Using these APIs is quite a simple process. Just enter the Udyam registration number in the API and receive details like the Name of the enterprise, Enterprise type, state, date of commencement, and major activity.

Benefits of Udyam Verification

Udyam verified SMEs get the following benefits than non-registered companies.

  • Collateral Free Loans: The Government of India offers collateral-free loans to small and micro businesses, helping both new and existing enterprises.
  • Priority in lending: MSME-registered companies get easy loan approvals as they have priority from the RBI. Priority lending helps enterprises to get financial support and boost their businesses.
  • Industrial Promotional Subsidy: Access the subsidies to support industrial growth and reduce financial issues.
  • Overdraft Interest Rate Exemption: Benefit from a 1% interest rate exemption on overdrafts, and enhance the financial stability.
  • Central Government Support: Udyam Registration helps enterprises access various programs like Atma Nirbhar Bharat, Quality Management Standards, and support for women entrepreneurs.
  • Simplified License Approvals: Udyam registered companies get easy license approvals and permits without complexity.

These are benefits a business can easily get by simply doing Udyam registration. They can boost their business growth with financial support and registered status.

Importance of Udyam Verification

  • Udyam Verification helps check the business’s credibility.
  • Udyam verification allows you to verify the Udyam Registration details.
  • Registering business to Udyam allows the company to access government benefits.
  • MSMEs become eligible to apply for collateral-free loans, subsidies and priority sector lending.
  • Reduce the risk of fraud
  • Help detect fraudulent companies and registration.
  • Prevents complications in securing financial support and investments.
  • Enhances credibility, making it easier to attract investors and secure funding.

These are the reasons which makes it important for all the MSMEs to register Udyam. As Udyam registration adds reputation and multiple benefits. The main thing a registered business attracts is the interest of investors which make Udyam registration more important.

Consequences of Not Verifying Udyam Registration

Increase Risk of Fraud: Udyam registration verification helps detect fraudulent or non-legitimate businesses. It reduces the risk of financial losses by lending money to fraudulent businesses.

Missed Benefits: if you are an enterprise and have not registered on Udyam. You will not be able to apply for government subsidies and loans available for the registered MSMEs.

Impacts business relationship: Investors like to invest in the registered company as compare to non-registered company  to reduce the risk of losses. Which negatively impacts the business relationship.

Conclusion

Udyam verification is an important process to confirm the legitimacy of Micro, Small, and Medium Enterprises (MSMEs) by verifying the Udyam Registration details. Udyam registration verification ensures that the business is legitimate.

If you are an investor or a financial institution, Udyam verification is essential for you to avoid investing in a fraudulent company. This verification helps detect fraud in companies and financial losses that can occur by investing in fraud companies.

Udyam registration is not only beneficial for the investor and financial institution for checking the legitimacy of the company but also provides many benefits to the registered companies. As MSME registered companies get access to government schemes, collateral-free loans, support, easy license approvals etc.

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