We live in a world of startups. Across the globe, people have become more interested in starting their own small businesses, especially in recent years. India is no exception to this. Many people in the country are turning into entrepreneurs. With their small shops or online startups, they are all working hard to turn their dreams into reality. But starting a business is quite complex as you have to deal with a lot of paperwork, licenses, loans and whatnot!
So, to help these Micro, Small and Medium Enterprises (MSMEs), the Government of India introduced the Udyog Aadhaar Scheme. The scheme is a registration system that gives small businesses an official identity and numerous other benefits.
In this article, we will delve deeper into the topic and understand what is Udyog Aadhaar, how it works, the benefits of Udyog Aadhaar registration, how to apply for Udyog Aadhaar, the documents required and more.
Udyog Aadhaar: Empowering MSMEs in India
The Udyog Aadhaar Scheme was launched in September 2015 to support small businesses, also known as Micro, Small, and Medium Enterprises (MSMEs). Under this scheme, MSMEs get a special 12-digit number called the Udyog Aadhaar Number, which is an ID for the business just like our Aadhaar card is an ID for individuals. With this Udyog Aadhaar Number, it becomes easy for business owners to avail loans, government schemes, and other benefits.
Note: The old Udyog Aadhaar and EM-II system is now called Udyam Registration.Objectives of the Udyog Aadhaar Scheme
The government launched the initiative of Udyog Aadhaar to make life easier for entrepreneurs and help MSMEs grow faster and stronger. Here are some of the goals the government looks forward to achieving with the scheme:
- Make registration easy and online as the old process was lengthy and full of paperwork.
- To provide recognition to MSMEs as many small businesses without official registration do not have a proper identity.
- To provide financial and other support as registered businesses can easily get loans and subsidies.
- The scheme is designed to boost small businesses so they can contribute more to the economy.
Key Features and Benefits of Udyog Aadhaar Registration
The Udyog Aadhaar Scheme provides many benefits and features.
- Free registration of your business.
- Get a 12-digit Udyog Aadhaar Number, giving your business a government-recognised identity.
- You do not need to visit any office as it is an easy online process.
- Get your business verification based on your own Aadhaar.
- No lengthy paperwork.
- Get loans and credits easily once your business is registered.
- Enjoy access to various government schemes like subsidies, tax benefits and discounts.
- Get protection against late payments as the government protects MSMEs if big companies delay payments.
- With a registered business, you can easily apply for government projects and contracts.
Who Can Apply for Udyog Aadhaar?
You must be wondering if you can apply for Udyog Aadhaar for your business. If yes, then below is the answer on who can get Udyog Aadhaar.
Though the scheme is for all Micro, Small, and Medium Enterprises (MSMEs) into manufacturing or services, here are the specific conditions you need to meet:
For Micro Businesses
- Manufacturing investment: Up to ₹1 crore
- Services investment: Up to ₹50 lakh
- Turnover: Up to ₹5 crore
For Small Businesses
- Manufacturing investment: Between ₹1 crore and ₹10 crore
- Services investment: Between ₹50 lakh and ₹5 crore
- Turnover: Between ₹5 crore and ₹50 crore
For Medium Businesses
- Manufacturing investment: Between ₹10 crore and ₹50 crore
- Services investment: Between ₹5 crore and ₹10 crore
- Turnover: Between ₹50 crore and ₹250 crore
So, even if you are running a small shop or a small online business, you are eligible to register under this scheme.
Step-by-Step Guide to Udyog Aadhaar Registration
If you want to register your business, here’s how to apply for Udyog Aadhaar in simple steps:
Step 1: Visit the official Udyog Aadhaar Registration portal (https://udyamregistration.gov.in)
Step 2: Enter your Aadhaar number and your name.
Step 3: Verify your Aadhaar with OTP.
Step 4: Fill in details like business name, address, type of business, bank account, etc.
Step 5: Choose whether your business is manufacturing or service-based.
Step 6: Submit the form.
Step 7: Once submitted, you will receive your Udyog Aadhaar Number.
Note: You can also download the Udyam certificate easily through the website.Documents Required for Udyog Aadhaar Registration
Here’s the list of documents required for Udyog Aadhaar Registration:
- Aadhaar card of the business owner.
- Business name, address and contact details.
- Bank account details.
- Details of your investment in the business.
- Number of people working for you.
- NIC Code (National Industry Classification Code)
Transition to Udyam Registration: What’s Changed?
In July 2020, the Udyog Aadhaar scheme was replaced by the new MSME Udyam Registration. This new system is more advanced, fully online and transparent. With this new system in place:
- There is no more paper registration.
- Automatic classification based on turnover and investment.
- PAN and GST are linked to easily verify your business.
- After registration, you get a digital certificate which you can easily download anytime.
Conclusion
Udyog Aadhaar is all about supporting small businesses in India and growing the country’s economy. So, if you run a small business and have not registered yet, register your business under Udyam Registration now. Get your certificate and enjoy numerous benefits like easy loans and government schemes.
Meanwhile, if you have urgent cash requirements for your business, download the CASHe app. CASHe offers instant personal loans of up to ₹3 lakh at a competitive interest rate. Apply on the CASHe app and get the loan approved within a few minutes.
