So, you’ve come up with a fantastic small company concept, you’ve written a business plan, you’ve gathered the necessary resources, and your paperwork is in order. But what about your registration for Udyog Aadhaar?
India’s MSME sector accounts for about 40% of the country’s total industrial value. As a result, it now enjoys a broad base of support from both the federal and state governments.
The Udyog Aadhaar/udyam registration portal was established in an effort to significantly improve industrial operations. The Udyog Aadhaar (UA) is a business identification card similar to the Aadhaar cards we have for individuals. Under the MSMED Act of 2006, it’s a 12-digit number that lets the government identify your business and provides you with a slew of advantages. SSI (Small Scale Industries) Certificate or MSME Registration were the previous names for the UA registration. The SSI Certificate was changed to Udyog Aadhaar, with a one-page registration procedure replacing the lengthy and time-consuming EM I/II forms.
Why is MSME/Udyog aadhar registration needed?
Just a single word. Subsidies! Most state governments provide discounts to UA-registered businesses on everything from electricity to taxes and admission fees to industrial corridors and estates. In most cases, companies in their early stages are free from sales taxes, excise taxes, and some direct taxes. Additionally, the federal government periodically launches micro, small, and medium-sized business-specific schemes, such as the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS), which was recently launched. A Udyog aadhar registration also entitles you to a slew of bank perks. MSMEs receive preferred interest rates on loans, faster loan approvals, and priority sector financing, among other benefits.
If you run a sole proprietorship, a Udyog Aadhaar serves as documentation that your business is legitimate, even if you don’t have a VAT certificate or a Shop Act license. When applying for loans or creating a bank account, all you have to do is present your Udyog aadhar as confirmation of your company’s identity.
Small Scale Industries Registration (SSI) was formerly optional, which meant that many MSME’s remained unreported. Businesses have chosen to register since the advent of UA because of the numerous benefits of doing so.
How to register under msme/udyog aadhar?
The process of registration under the Udyog Aadhaar number is quite easy and uncomplicated. Visit the Udyog/udyam registration portal for further information. Udyog aadhar online application form is available. All you need are a few simple details like:
- Aadhaar number
- Owner’s Name
- (General/OBC/SC/ST) Social Category
- Name of the Business
- Organizational Structure
- postal Address
- Commencement Date: (Date when the business began its operations)
- Details from previous registrations (SSI registration, EM I/II registrations)
- Bank Account Information
- Major Activity (the type of activity your company engages in, such as manufacturing or providing services)
- National Industries classification code (NIC Code)
- Employed People (Mention the total number of people employed by the company)
- District Industry Centre Investment in Plant & Machinery/Equipment
Simply click ‘Submit’ after entering these data to obtain an acknowledgment number, and you’re done!
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Because of the government’s attractive MSME schemes, now is an excellent moment for small companies and organizations. As new and better programs are implemented, having a Udyog Aadhaar registration becomes increasingly important.