Udyog Aadhar was introduced with the idea to simplify the procedure that business owners have to go through in order to register their businesses under Micro Small Medium Enterprises or MSME. Before the introduction of Udyog Aadhar, the procedure was quite time-consuming and required handling of lots of paperwork. With the introduction of Udyog Aadhar, things have changed and improved MSMEs to a certain extent. If you own a medium, small or micro enterprise and you haven’t registered it yet, you should know that by registering it vis Udyog Aadhar Memorandum, you will be liable to enjoy many benefits.
What Is Udyog Aadhar?
Before Udyog Aadhar, the government was providing MSME Registration under the MSME Act 2006 but after September 2015 govt notified Udyog Aadhaar Registration to avail the government benefits and scheme throughout one page simplified registration. Udyog Aadhaar is 12 Digit business registration unique id called Udyog Aadhar number which is provided to every small and medium business. Udyog Aadhar is directly linked to the entrepreneurs Aadhar number so govt can track all the data related to the startups easily.
Who Should Get Udyog Aadhar?
Almost every type of business entity can obtain Udyog Aadhar, be it, Proprietorship, one-person company, Partnership Firm, production company, limited company, private limited company, limited liability partnership, co-operative societies or any association of persons or any other undertaking.
However, there are a set of criteria that an entity has to meet in order to be classified as a medium, small or micro enterprise for obtaining the MSME registration.
If you own a company or an enterprise, then you should check if your entity can be classified as a medium, small or micro industry under the criteria defined in the MSME Act, 2006 for checking your eligibility.
What is the Major Difference between old MSME Registration and Udyog Aadhar?
MSME Registration or SSI Registration is very complicated in terms of the registration. First of all, entrepreneurs have to file the EM-1 Form before the starting of the business, after that they have to file the EM-2. even after the submission of the govt form’s approval is the major concern for the newly startups. Govt officer is not providing fastly approval so entrepreneurs can’t avail the govt loans or subsidy and other benefits under the MSME Act.
But after the introduction of the Udyog Aadhar Registration, you have to simplified fillup the one-page form and got your Udyog Aadhar Certificate.
How To Register Udyog Aadhar?
The registration process of Udyog Aadhar is quite easy, and the form filling process is pretty straightforward too. Registrations are way simpler and efficient now. Here is a simple guide for registering under MSME for obtaining Udyog Aadhar.
Visit the Official Website
Go to the official Udyog Aadhar Registration website where you will find the very first step for getting your business registered online.
Enter Your Personal Information
The initial particulars that you will need to enter will be your name and your 12-digit unique Aadhar number. You will receive an OTP on your registered mobile number. Enter the OTP, and after that, you will have to select the social category.
Fill Details About the Enterprise/Entity
After that, you, as an applicant, will have to fill the name with which the public/customers will recognize the entity. After filling all the details, the next information that you will have to provide will be the complete postal address of the company/enterprise/entity including info about the district, pin code, state, email address and mobile number.
Fill the Carry Forward Info
You will have to provide information regarding the previous registration through SSI, EM1, and EM2 including the UAM registration number.
Fill the Bank Details
You will have to enter the bank account number along with the IFSC code of the concerned branch where your enterprise’s account is active. If you don’t have the IFSC code of the concerned branch, you can obtain the same on the bank’s website.
Classification of Your Enterprise
You will have to mention the mainline activity of your enterprise from the “services” or “manufacturing.”
Select the District Industry Center and Accept the Declaration
In the final step of this process, you will be selecting the district industry centre from the provided drop-down list. After that, you will have to accept the declaration and submit your application in order to finish the process
What Are The Advantages Of Udyog Aadhar?
You will get to enjoy a number of advantages after registering your business and by obtaining Udyog Aadhar. The biggest thing about obtaining Udyog Aadhar is that the process is quite simple and in addition to that, you won’t have to handle the paperwork for obtaining Udyog Aadhar. Other benefits of Udyog Aadhar are:
- The exemption under the direct tax laws
- Reduction in fee for filing patents and trademarks
- Credit guarantee scheme
- After getting registered with MSME, your business will get eligible for availing government scheme benefits which will include loans without guarantee, low-interest rates on loan, and easy loan.
- You will have financial backing from the government for participating in foreign business expos.
- You will also get to enjoy other forms of subsidies that will help you in increasing your company’s revenue.
- Great concession in electricity bills
- You will get an exemption when your enterprise applies for government tenders.
Udyog Aadhar registration is a good initiative taken by Govt. of India under Digital India to helping startups on the simplified legal things. Till the date, more than 45 lakh Udyog Aadhar has been registered. However, if you’re still confused about Udyog aadhar registration process, deAsra is here to guide you through the entire process step by step.