Udyog Aadhaar Registration is useful as well as important for small enterprises and it extends to MSME’s and for startups MSME registration is mandatory.
In order to obtain the payment gateway, you can register your online startup under Udyog Aadhaar.
Depending upon the nature of your business you need to incorporate your business before applying for Udyog Aadhaar you can also go for the business incorporation in India.
Prior to October 2016, the filing of the memorandum I and II consumes a lot of time and paperwork which has to be done in order to get registered with MSME’s. On the financial structure of the following
- MSME sector,
- The Kamath Committee recommended a single window clearance system.
- Hence, the policy of Udyog Aadhaar came into force.
What is Udyog Aadhaar?
Udyog Aadhaar is a facility by which a company gets a 12 digit unique ID to become a legal entity. Any enterprise either
- medium, and
- small enterprise
However, to start out any business needs to get itself registered under Udyog Aadhaar.
Furthermore if Micro, small or medium industry ID wants to start their business then they need to get registered with MSME. It can be used for numerous purposes such as:
- Identity proof of business, and
- Opening bank account
- Getting VAT or service tax registration, and
- Useful in claiming incentives from the government
Udyog was previously known as Small Scale Industries (SSI), now the government has made the process of online registration and the name was changed from SSI to Udyog Aadhaar and its only purpose is to run the enterprise.
However, it is a step toward ease of doing business it reduces all unnecessary delays, complications, and paperwork.
Objectives of MSME department with respect to providing Udyog Aadhaar registration
- It enables the micro, small and medium enterprise to work efficiently and compete with the international competition.
- It promotes the growth of micro, small and medium enterprises on a large scale so as tackle them effectively and widespread problems of unemployment and poverty.
- It extends the benefits of various government scheme at one stop to the SSI units.
- It safeguards the SSI from financial harassment in the hands of big industries.
Who is Eligible?
Actually, not all businesses are eligible to obtain Udyog Aadhar registration. Only the entities which could be classified as a micro, small or medium enterprise as per the following table is eligible for Udyog Aadhar based on investment in plant and machinery:
Who is not eligible?
The business services having an investment of more than Rs.5 crores in equipment or a manufacturing business having an investment of more than Rs.10 crores in plant & machinery would not be eligible for obtaining Udyog Aadhar registration.
Types of Udyog Aadhaar Registration
The registration can be done in two ways:
- Online registration
- Offline registration
Online Udyog Aadhaar Registration Process
The online Udyog Aadhaar registration process has been created with the aim to encourage the online filing of Entrepreneurs Memorandum for micro, small and medium enterprises.
Therefore, in conclusion, it simplifies the registration process with an online registration form.
The MSME self-certify:
- It’s existence
- Bank accounts
- Business activities details
- Employment and ownership details, and
- Other information
Online form available at the site of ministry should be filed by the owner of the enterprise for the purpose of the registration of the entity.
This form can be filed manually also. You can get the registration form of MSME on www.msme.gov.in
Further, the applicant would have to submit the information required in the following Udyog Aadhar application form:
Documents required for the Udyog Aadhaar Registration
There are various documents required for the registration of Udyog Aadhaar are:
A 12 digit number issued to the applicant
Name of the owner
The applicant name mentioned on the Aadhar card issued by the UIDAI
A social category
- Applicant caste
- If in case SC/ST/OBC then the proof for the same (if required)
Name of the enterprise
- Name of a legal entity to conduct business
- If an applicant has more than one enterprise then the name of all the enterprise
- Each enterprise can register for separate Udyog Aadhaar with the same Aadhaar number.
Type of organization
- A business entity or legal entity
- Proprietorship Firm
- Partnership Firm
- Private Company Limited
- Public Company Limited, etc.
- Address of the business entity
- Mobile number, and
- Email address
Date of commencement
The date on which business started
Details of the bank account of a company including Bank Account Number and IFSC code.
Details of activities
- Activities related to business,
- Manufacturing, or
- An appropriate NIC code from National Industrial Classification handbook should be entered.
- The applicant may choose multiple NIC to include their all business activities
Details of employees
- A total number of employees in the business and other details.
Details regarding investment
The amount of money invested in different assets of the company such as:
- Plants and Machinery, and
- Other equipment, etc
- Details of the District Industry Centre near to the business (if required)
- The PAN is required in case of cooperatives, and
- Details of major activities carried out by the enterprise.
Udyog Aadhar is for running units there is no need to apply it for upcoming units.
To avoid three-step selection of NIC activities new features added to search facility to NIC code.
It is important to understand what is MSME.
India’s leading online service provider company build an automation platform to register your firm or a company with Udyog Aadhaar registration.
Benefits of Udyog Aadhaar Registration
The Government of India pronounces various incentives from time to time in order to promote MSME’s through MSMED Act 2006.
Importance of Udyog Aadhaar
- Easy sanction of bank loan at lower rate of interest.
- Credit guarantee scheme
- Excise exemption
- The exemption under direct tax laws
- Interest rate stipulated by RBI, for the time being, is thrice on Delayed Payment Act.
- Other subsidies from state government such as:
- Extended credit facilities
- Industrial extension support and services
- Assistance in marketing (both outside and within the country)
- Assistance for construction of industries in the underdeveloped area
- Technical consultancy
- Assistance in capital for enhancing technology in MSME’s
As a result, Government enhances the list of reserved products to be brought from MSME’s only. Finally, as per trademark rule 2017, special provision has been carved out for small and same micro industries.
In addition, the fees for filing a trademark application for MSME’s will be 50% as per schedule A of the rule.
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