The Government of India offers small and medium-sized business a unique number and certificate that recognises and certifies them as enterprises. It is called the Udyog Aadhar registration. Previously known as the MSME registration process, any of the following businesses can opt for it:
- A sole proprietor entity
- An LLP enterprise
- A private limited company
- Or any other corporation
To register, a 12-digit Aadhar Number is needed which can be provided by:
- The owner of the firm
- The director of the enterprise
- The proprietor of the entity
Udyog Aadhar – Who Should Opt for It?
Any business, trade or entity that meets the specified criteria of micro, small or medium enterprise can apply for MSME registration. If the company can be classified as MSME, it can opt for Udyog Aadhar. The type of enterprise can include:
- Proprietorship
- Partnership Firm
- Limited Company
- Production Company
- One-Person Company
- Co-Operative Societies
- Hindu Undivided Family
- Private Limited Company
- Limited Liability Partnership
Besides the ones listed above, any other association of people or undertaking can also choose to register for Udyog Aadhar.
How to Register for Udyog Aadhar?
In the past few years, the government revamped the SSI and MSME registration process to make it much simpler. The rejuvenated system is straightforward and doesn’t require too much data. It should be noted that the online portal can only be used by individuals who have an Aadhar Card and possess an enterprise.
A person who wants to register as MSME but doesn’t own an Aadhar number needs to file for Udyog Aadhaar Memorandum (UAM) with the General Manager of the required District Industries Centre. Here are the steps to take for those who have an Aadhar number:
1. Udyog Aadhar has an official registration portal. The first step is to visit it.
2. Once the website is open, fill in two particulars:
- The complete name of the individual filing for registration.
- Their 12-digit unique Aadhar Number.
After this click on the ‘Validate and Generate OTP’ button. The one-time password will be sent to the mobile number registered with Aadhar Card. Use the OTP to fill in the social category. There will be four classes:
- SC
- ST
- OBC
- General
3. Now all the details of the business or enterprise need to be filled in. Remember the space for the name has to be filled in with the name of the business and not the person filling the application. For the correspondence details, type in the entire postal address of the business. This would include:
- District
- Pin Code
- State
- Email Address
- Mobile Number
4. Next comes the carry forward information which necessitates data such as:
- The date the entity started operations. (Use the calendar to fill the accurate date)
- Any previous registration data. (This includes SSI registration, EM1, EM2 and UAM registration number)
5. The form will now ask for bank details. Enter the bank account number and IFSC code of the bank branch. Please ensure that the account is registered under the enterprise’s name. To find the IFSC code, go to the website of the bank.
6. The following step is to specify the main business of the enterprises. Udyog Aadhar offers two choices – manufacturing and services. For a company that does both, the best-case scenario is to pick the option that constitutes the significant chunk of operations. For example, if the enterprise is 70% manufacturing and 30% services, then manufacturing would be the right selection.
7. The last detail the form asks for is the number of employees currently enrolled in the business and the full investment amount.
8. The final step of the procedure is to choose the District Industry Centre. Use the drop-down list to pick one. After this accept the declaration and submit the application.
If a person has more than one enterprise, they will need to fill a separate Udyog Aadhar form for each one of them.
Why Register Under Udyog Aadhar?
A simple process that requires nil paperwork is not the most consequential incentive for registering an enterprise for Udyog Aadhar. The scheme offers a plethora of paybacks and advantages to small, micro and medium-sized businesses. To name a few:
- The company gets an excise exemption.
- The trade can opt for credit guarantee scheme.
- The firm is also exempt from direct tax laws.
- Since business demands a lot of electricity, a registered enterprise can avail concession on power bills.
- If the entity files for trademarks or patents, it gets a reduction in fee.
- Once a firm is designated as an MSME, it can avail many government schemes such as:
- easy loans
- loans without guarantee
- low-interest rates on loans
Another avenue for increasing the revenue of the business is subsidies that are enjoyed by registered MSMEs.
- When the enterprise decides to participate in international and foreign expos, it gets financial support from the government of India.
- An Udyog Aadhar firm gets exemptions when they apply for any tenders issued by the government