we will discuss the Udyog Aadhar Registration Process, We will also determine how it is beneficial and what purpose it serves.
What do you mean by Aadhar?
An Aadhar is essentially a government-issued document that holds personal details like your biometrics, your fingerprints, and other data concerning your date of birth, address, etc. It is a 12-digit unique number that is assigned to every citizen of India by the government. This number exclusively distinguishes you from other individuals. This unique identification number is assigned to every citizen of India by the Unique Identification Authority of India (UIDAI).
Having an aadhar does not prove your citizenship. It is only proof of your residence.
You can also download an electronic copy of your aadhar which is called an e-aadhar. Having an e-aadhar automatically makes it unnecessary to carry around your physical copy of aadhar.
An aadhar is overall a vital document which is required during all kinds of identity verifications.
What do you mean by Udyog Aadhar?
Similar to Aadhar, Udyog Aadhar is also a form of unique identification. However, Udyog Aadhar identifies not as an individual, but his registered business. Udyog Aadhar is essentially a 12-digit unique identification number. This number is issued by the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. This number primarily represents the identification of businesses and, is therefore also called Aadhaar for business.
The Udyog Aadhar or the Aadhaar for business is a scheme that is chiefly occupied with the regulation of micro and small businesses in the appropriate legal manner.
Previously, the procedure of getting your business legally registered under a recognized authority came with much hassle and complications. With the introduction of the Udyog Aadhar scheme, this process has been simplified to a great extent. Therefore, the Udyog Aadhaar registration process is known to be a convenient and hassle-free way of getting your business registered under a recognized authority with an appropriate legal approach and without any challenging ramifications.
Hence, the Udyog Aadhar scheme proves to be the most convenient and suitable in terms of business registration.
What is Udyam registration?
Before the introduction of the Udyog Aadhar scheme, the registration process to get your business legally registered was a hectic and lengthy one.
The primary objective of the Udyog Aadhar scheme is to simplify the problematic procedural structure that business owners had to previously face to get their businesses registered under Micro Small Medium Enterprise (MSME).
As of 26th June 2020, a notification was delivered by the Ministry of Micro, Small and Medium Enterprises (MSME), which stated that there would be a new procedure of classifying and registering enterprises starting from 1st July 2020. Such an enterprise would be known as ‘Udyam’ and the process of registering such an enterprise would be known as ‘Udyam registration’.
So, Udyam registration is essentially the process of registration that business owners have to go through to get their respective businesses registered under Micro Small medium enterprise (MSME).
- Udyam registration process:
The new and improved process of registering your business under micro, small and medium enterprises has been moulded in a hassle-free and convenient way. You can now get your business registered under MSME by simply following the steps given below:
- First, you need to visit the official website for Udyog Aadhaar registration process.
- Now, you need to click on the option that says, ‘For new Entrepreneurs who are not registered yet as MSME’.
- Next, you will be asked to provide your name and aadhaar card number. Enter your name as provided in your aadhaar card, enter your aadhaar number and proceed by clicking on the option that says, ‘Validate & Generate OTP’.
- In a few seconds, you will receive an OTP on your registered mobile number. Enter the OTP and click on the ‘Validate’ option. This will validate your aadhaar successfully.
- Now comes the process of PAN verification. Here, you will be asked to provide your type of organization and PAN number. Oblige to the requirements and click on ‘Validate’. This will validate your PAN verification.
- At this step, you will receive the Udyam registration Continue to fill the form as required.
- After your PAN verification, you need to fill in the following details:
- Mobile number & E-mail ID
- Name of enterprise and address of your office
- Date of initiation of business
- Social category and gender
- Bank details
- Date of incorporation
- Number of persons employed,
among other details.
- After filling in all the required details, you need to agree to the terms and conditions provided. Then you need to click on the option that says, 'Submit & Get Final OTP'
- Now, you need to enter the final OTP that you have received on your registered mobile number and then click on ‘Final Submit’.
- Once all your verification is completed, you will then receive an E-registration document on your registered E-mail ID.
- Udyog Aadhar registration process certificate:
When micro, small, and medium enterprises (MSMEs) register their respective business under the Udyog Aadhar scheme, a certificate of registration is issued to the enterprises as a form of recognition. This is known as the Udyog Aadhar registration certificate. The Udyog Aadhar registration certificate is basically a confirmation certificate that certifies that your business is registered under the Udyog Aadhar scheme free of any further inconvenience.
The Udyog Aadhar registration certificate comprises of a unique identification number that certifies the enterprise. This also assists in obtaining various advantages like reduction in the cost of setting up businesses, getting concessions on utility bills, acquiring bank loans at lower rates, etc.
You can print your Udyog Aadhar registration certificate by visitin
- MSME registration:
In a progressing country like India, MSME industries act as resilient pillars of the economic world. The MSME segment promotes about 45% of the country's total industrial employment. It contributes to 95% of all industrial units in India and also controls 50% of the country's total exports.
Now, MSME is an abbreviated term that stands for Micro, Small, and Medium Enterprise.
The MSME act allows you to proceed with your registrations, without concern regarding whether your company is in the service line or the manufacturing line.
The government of India has not legally mandated the registration of enterprises as of yet, however, it proves advantageous to get your company registered. Getting your company registered under MSME offers various benefits in terms of taxation, loans, utility bills, etc.
You can learn about the simple way of proceeding with MSME
The documents that are required for proceeding with the process of MSME registration include: 1) Aadhaar Card
2) Rental agreement
3) Sale or purchase bill & PAN
4) Property documents
5) Cancelled cheque
A one-time charge of Rs.1999 (all-inclusive) is to be paid as the MSME registration fees. This fee is calculated per certificate.
- Eligibility criteria for Udyog Aadhar application: There are certain criteria that you must meet to prove yourself as eligible for applying for the Udyog Aadhar scheme. For both manufacturing and services enterprises, there have been drawn eligibility criteria concerning the investment amount and annual turnover of the company. This is as follows:
- Micro companies- In the case of a micro-enterprise, the investment amount should be less than Rs.1 Crore and the annual turnover should be less than Rs.5 Crore.
- Small companies- For small enterprises, the investment amount should be less than Rs.10 Crore and the turnover can be up to Rs.50 Crore.
- Medium companies- In the case of medium enterprises, the investment amount is required to be less than Rs.50 Crore and the annual turnover can be up to Rs.250 Crore.
You can access the Udyog Aadhar Registration Process file and download it
- Benefits of getting registered under MSME via Udyam registration:
- Udyam registration will assist you in obtaining government tenders.
- If you register via Udyam, you will receive considerable concessions on bank loans. You may even be able to acquire a bank loan without a mortgage or any collateral.
- If you register via Udyam, you will enjoy subsidies on various items like taxes, tariffs, etc.
- Getting registered via Udyam enables you to get concessions in various aspects like utility bills, cost of initiating a business, etc.
- There are several tax rebates available on registration via Udyam.
- Businesses registered under Udyam often get prioritized in terms of getting approvals, licenses, and other registrations.
Can I get a copy of my MSME certificate?
Yes. You will certainly receive a copy of your MSME registration certificate which will be sent to your registered E-mail ID.
How long does it take for the MSME certificate to be issued?
After submission of your form, it normally takes 1-2 days for your MSME registration certificate to be issued.
Is it possible to complete MSME registration without aadhar card number?
No. Aadhar card is compulsory for MSME registration.
Is it possible for MSME borrowers to acquire loans without collateral?
Yes. Many financial institutions offer the benefit of acquiring bank loans without collaterals to MSME borrowers.