Micro, Small, and Medium Enterprises (MSMEs) are the backbone of our economy. They are responsible for the growth of various sectors of the economy. To aid the MSME sector, the government launched various subsidies, schemes and incentives to promote MSMEs. For MSMEs to avail these benefits, they must register themselves using the Udyog Aadhar Registration.
Udyog Aadhar was introduced to simplify the ways and means business owners had to endure to register their businesses as a Micro Small Medium Enterprise. The procedural format for registering a business before the introduction of Udyog Aadhar was a hectic, time consuming bureaucratic process that involved a lot of paperwork. Owners had to rely on the national portal, and different states had their own individual portals.This was the only way they were liable to enjoy the benefits provided to MSMEs.With the introduction of Udyog Aadhar, however, things are looking up and have changed to some extent for MSMEs.
What is it and for whom?
Udyog Aadhar is essentially a registration with the government, along with a certificate of recognition, and a unique number. This helps certify the MSMEs. The primary goal of this launch was to enable the government to provide the medium and small scale businesses of the country with a multitude of benefits. But, in order to avail these benefits, the MSME must be registered through their Aadhar card. From a Sole Proprietorship to a Partnership Firm or a Limited Company, a Private Limited Company, Co- Operative societies or any other undertaking, any type of business can obtain Udyog Aadhar. But, there is a set criteria that a business has to meet in order to be classified as a micro, small or medium enterprise to obtain an MSME registration. If you are the owner of a small, medium or micro enterprise, you must check if the entity can be classified as an MSME based on the criteria defined in the MSME Development Act, 2006, to see if you are eligible.
The Registration Process
The registration process is pretty straightforward and filling the form is relatively easy. The process is much simpler than the old process and requires considerably less time and information to be completed. The registration is much more streamlined and efficient. Now we’ll take you through the steps to get your MSME registered under Udyog Aadhar.
To get your business registered as an MSME, you need to visit the official Udyog Aadhar Registration portal. You will need to enter particulars about your personal information and your unique Aadhar number. Once you receive the OTP on your registered mobile number, you can proceed. If an individual doesn’t have an Aadhar card, they can file for Udyog Aadhar Memorandum (UAM) with the General Manager of the concerned District Industries Centre.
You then have to enter the name of your business along with the complete postal address of the enterprise, including the district, the state, email address and mobile number. It’s the name that your company will be identified by the public.You also need to enter the date on which the business started its operations. You must provide details of your bank account number and the concerned branch’s IFSC code, where your business’ account is active. It is essential that mention the main activity of your enterprise. Whether it is a service based or a manufacturing based entity. If your enterprise deals with a combination of both, choose the category that defines the majority of the operations of your business. One of the last things that need to be filed is the total number of employees in your enterprise and the total amount of money invested (in lakhs).
Finally, select the District Industry Centre from the provided list and accept the declaration.Once all these steps are completed, you will receive an acknowledgement number for your MSME.
To complete the registration process, you will require the following documents.
- Name and the Aadhar number of the business owner.
- Document required as proof of social category
- Name of the organization
- Previous registration details of your enterprise, if any.
- Type of organization
- Current address and account details
- National Industrial Classification Code
- The total number of workers employed
- Current activities of your firm
- Email ID and mobile number
- PAN number and the total investment made in the organization
Aside from being a simple process to obtain a registration certificate, numerous benefits are offered by the ministry of MSME to assist with the development and growth. Here are some of them:
- Excise exemption and exemption under direct tax laws.
- Reduced fees for filing patents and trademarks.
- Collateral free business loans and low interest rate loans.
- Financial backing to participate in foreign business expos
- Easier approvals for obtaining licenses
- Concession on Electricity bills
- Exemptions when applying for government tenders
Apart from these benefits, whenever a new scheme is introduced by the government, the registered MSME receives the same benefits.