Opening a business in India is a lengthy process. When starting up a small or medium business (SMB), you may get confused about the requirements for registration. One of the important requirements for registering an SMB is Udyog Aadhaar. It is also known as Aadhaar for business. It is a 12-digit Unique Identification Number provided by the Ministry of MSME.
Udyog Aadhar will enable all business enterprises to file and register themselves. In addition, start-ups can access and avail of all services provided by the government using this Aadhar number. Due to its benefits, all types of businesses should register under Udyog Aadhaar.
Objectives Behind Udyog Aadhaar
The primary objective of Udyog Aadhaar is to promote the SMB. It does so by simplifying the registration process. Its other objectives include.
- It aims to provide information about setting up a business enterprise. So, you should give all the details to set up SMB.
- It also helps to provide information about the main schemes. So, the businessmen can avail various benefits, subsidies, and schemes of the Government of India.
- You can also get financial assistance by taking loans at less interest rates.
- It enables all enterprises to file and register themselves. So, they can access other services by simply using Udyog Aadhar Number.
Features and Benefits of Udyog Aadhaar
The Government introduced Udyog Aadhar to provide many benefits to SMB. And make it easy for them to do business. Here is the list of features and benefits under this scheme –
- Registration is online and simplified.
- You can file all documents on a self-certification basis. As a result, you need not go around to get them certified by an authority.
- The registration is free of cost. In addition, the registration and approvals to obtain licenses from government authorities and agencies is easy.
- You can also avail loan facilities without any collateral. And that too at lower interest rates.
- Besides, you get financial assistance from the government of India as well. For example, subsidies, exemption of octroi, waiver in security deposit in government.
- There is a facility to resolve your disputes speedily.
Besides the above benefits, you also get various exemptions and concessions:
- There is a fee reduction for filing patents and trademarks.
- You can get several exemptions under direct tax laws and excise duties. And it is also applicable for government tenders.
- There is a significant discount on the electricity bill.
- You get a waiver of stamp duty and registration fee.
- You can obtain more than one Udyog Aadhaar with the same Aadhar Number.
How to register for Udyog Aadhaar?
The process of registration and getting Udyog Aadhar is simple, instant, free of cost, paperless and online. Earlier, if you wished to start a business, you had to go through a lot of paperwork and fill different forms. Now, the government introduced Udyog Aadhar to simplify the whole registration process.
Once you register with Udyog Aadhar, you can receive the benefits of several government schemes such as subsidies, easy loan approvals, tax exemptions, fees waivers etc.
Here is how the process works –
- Firstly, the entrepreneur should fill a one-page form that he could do online by visiting the official website.
- Then, enter your personal information. For instance, the owner’s name, Aadhar card number, mobile number, mail address etc. Aadhar Number is mandatory.
- In the above form, you have to submit details about the business. It includes proof of existence of business, details of business activities, bank account details, ownership & employment details, etc.
- Self-certify all the documents provided.
- You don’t have to pay any registration fee for this process. It is free of cost.
- The government verifies the information that you have filled.
- After the details are verified, you would obtain the registration number and the certificate on the email address given.
To register for Udyog Aadhaar, you will require the following documents:
- Aadhaar Card of course. If you don’t have one, Aadhaar Enrolment ID Slip will do the work.
- Bank Pass Book to verify the bank details.
- Voter ID Card
- PAN Card for tax purposes
- Driving Licence
- If you belong to the reserved category (SC/ST/OBC), you will also need the caste certificate.
In addition to the above, you may have to present other documents in case the need arises. So, ensure that you have all the required documents.
In summary, Udyog Aadhar is one of the simplest requirements for a startup. The process is extremely simple. And the benefits are surely in the interest of entrepreneurs in India. It is clear that the government of India is encouraging the concept of ‘Make in India’ via such streamlined processes.
Frequently Asked Questions (FAQs)
For Udyog Aadhaar registration, the documents that you will need are mentioned above.
Here, the MSME certifies its existence and provides mandatory information such as the owner’s Aadhar details, bank account details etc. After submitting this form, an acknowledgement form is sent to the applicant’s registered email containing the unique UAN (Udyog Aadhaar Number)
Yes, an entrepreneur can file for more than one Udyog Aadhaar registration. Although, there is no need to do so. As all activities undertaken by an entrepreneur can be specified or added in one registration.
No, they are not the same. The Government introduced Udyog Aadhar in 2015 for the registration of MSMEs. Afterwards, the Government introduced the Udyam Registration portal in 2020 for registering new MSMEs.
All enterprises having Udyog Aadhar Registration need to re-register under the Udyam Registration portal after 1st July 2020. It is to ensure their validity.