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The Udyog Aadhar Card registration process was initiated in India by the government for boosting small and medium businesses.
Udyog Aadhar (also known as Aadhar for business) is a unique 12-digit Unique Identification Number provided by the ministry of MSME for small and medium enterprises. It is a means for small business entities to register themselves as MSME, giving small business owners the official government recognition for their business.
Moreover, companies that are MSME- registered are also applicable to many different benefits and subsidies that the government is providing them to boost their business. The reason is that they help to create many jobs and are also responsible for a sizeable amount of all manufacturing activities within the country.
Additionally, as India is approaching the new decade with the Make in India campaign, MSME stands at a pivotal position to fulfil this dream.
Is Udyog Aadhar Card Compulsory?
Although the Supreme Court has not yet put Aadhar in the mandatory list, the government of India has made Udyog Aadhar compulsory. As a fact, it is a critical step to registering as a new MSME business or receive recognition as an MSME. Besides, there are massive advantages for companies that register with a Udyog Aadhaar.
Under this legislation, all enterprises with a turnover of up to 5 lakh INR, and an investment threshold of 1 crore INR are classified under micro businesses. Enterprises within the range of 5 lakhs INR to 50 crores INR in annual turnover or having an investment of 1 Lakh to 10 Crore INR falls under the small business category. The upper limit for medium scale businesses is 100 crore INR in turnover or investment of up to 20 crore INR.
Without Udyog Aadhar, new businesses will not be eligible to avail the benefits that come with it. Hence, it is better to fill up the Udyog Aadhar registration form.
Process of Udyog Aadhar Registration
The process for Udyog Aadhaar registration is hassle-free with only a few steps and quick registration. You can apply for either an offline or an online means of registration for your MSME. If you do not want to rely on other people to handle your registration, you can opt to register yourself online for quicker approval compared to the offline method. Moreover, the registration is free of charge, and you can also edit the document later if things go wrong.
Whether applying online or offline, you need to fill up a form that includes an Aadhar card, and so, if you have not already registered for an Aadhar card, now might be a good time to do so. It quickly links your card to the business.
- To apply online, you need first to visit the Udyog Aadhar portal and apply for new UAM registration.
- After entering Aadhar details, and name of the owner, complete OTP verification.
- After successful validation, you will finally reach a page which contains the form.
- Enter all your details in the form accurately and recheck it.
- Now click on Submit to receive another OTP.
- After successfully verifying the OTP, now you will have completed the registration.
- Upon completion of filling and successfully submitting the form, the Udyog Aadhar Acknowledgement will be mailed to the e-mail address provided, and you can print the Udyog Aadhar Card and the Udyog Aadhar Certificate.
- Udyog Aadhar Number (UAN) will be sent via mail.
Keep the following documents by your side to help you with the registration process.
- Owner’s Aadhaar UIN, PAN Number, and Bank details
- Name and other general information of the owner
- Name of the Enterprise, type of business, and Organization size
- Address and contact details of the business.
- Date of commencement for new business
- NIC Code
- Total investment in the business
After successful registration, you can reap the benefits of the Udyog Aadhar Card. If you ever need to edit your Udyog Aadhar or update it, you need to login to your account first, and verify it through the medium of an OTP sent to the registered number.
Benefits of Udyog Aadhar
Here are some of the significant benefits of Udyog Aadhar registration for MSME businesses:
- Collateral Free Bank Loans: One of the chief advantages of Udyog Aadhar registration is that MSME business can avail loans from banks without providing any security. Currently, the maximum limit of loan that one can apply for is 20 lakh INR
- Lower Interest Rates: Registered MSMEs can avail bank loans at up to 1.5% lesser interest rates than regular loans.
- Increased Loan limit: Upon registration, the eligible loan limit will significantly increase, and may even double itself, for the same business.
- Easier Registration Approvals: With Udyog Aadhar, it becomes easier to get approvals of different registrations and licenses, irrespective of the business.
- Patent Registration: Registered MSME businesses can avail benefits of 50% subsidy on patent registration.
- Government Tenders: Udyog Aadhar registered businesses has a higher chance of getting government tenders.
- International Trade Fair: Registered businesses will receive special consideration and financial support to participate and showcase their product on foreign expos.
- Waiver of Stamp Duty and Registration Fee: Business entities having Udyog Aadhar will be exempted from payment of Stamp Duty and Registration Fee.
- IPS Subsidy: Udyog Aadhar registered business entities are eligible for Industrial Promotion Subsidy.
- Protection against Delayed Payments: The Ministry of MSME provides its registered business protection against delayed payments. Upon failure of on-time payment, the MSME can charge up to three times the penalties.
- Tax Subsidies: One of the most important benefits of having an Udyog Aadhar Certificate is that you can avail tax exemptions and capital subsidies.
- Current Account: The necessary document that banks ask for while opening a current account is a valid business registration proof. Hence, you can easily open a current account using a Udyog Aadhar Card, since it is treated as a legal document by banks.
Recently, the government has provided various benefits to MSMEs, and to avail them; you need to register with Udyog Aadhar. The registration process is simple, and so is the process to review and edit them. Hence, more businesses are opting for the registration.