All About Udyog Aadhar Registration
All About Udyog Aadhar Registration

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Date: 26 Jun 2021


Know All About Udyog Aadhar / Udyam Registration

MSME sector is the backbone of our Indian economic structure and contributes to the country's socio-economic development. With around 63.4 million MSME units across the country's geographical range. MSMEs play an important economic driver as they contribute about 29% of the GDP through their national and international trade. MSMEs have employed over 120 million people and have contributed to around 45% of the overall exports from India.

 

To encourage the efforts of this sector, the Government of India has outlined various policies, like collateral-free automatic loans for businesses, Guarantee Emergency Credit Line, etc. MSMEs have to register themselves under Udyog Aadhar (Old process) / Udyam Registration (New process) to avail themselves of such benefits. 

 

What is Udyog Aadhaar? 

Udyog Aadhaar is the twelve-digit Unique Identification Number issued after registering with The Ministry of Micro, Small and Medium Enterprises, Government of India, beginning in September 2015 to ease and is often recognized as Aadhaar for Business.


 

What is Udyam Registration?

Udyam Registration is the new method of MSME / UDYOG AADHAR Registration which is launched on July 01, 2020, by the Ministry of Micro, Small, and Medium Enterprises.

 

Earlier the Udyog Aadhar registration process was very lengthy and used to consume a lot of time. Due to the involvement of various categories, conventional procedural formats, and effort from the business owners. Whereas the new Udyam registration process is a single-window, paperless process, no additional documents must register under MSME.

 

If you own micro, small or medium enterprise and you haven't registered your MSME unit yet, you must know that on registering your MSME via Udyam Registration, you will be able to enjoy and participate in numerous government schemes.

 

Benefits of Udyam Registration (Earlier known as Udyog Aadhar)

Once you are registered under Udyam Registration, you get to enjoy and participate in various government schemes and tenders with less paperwork. Check out the top benefits:

  • One of the main Udyam Registration benefits is the ability to participate in many government tenders and schemes such as easy small business loans at subsidized rates, various tax rebates, uncomplicated licensing and Government approvals, etc.
  • Get the compensation on the expenditure incurred to obtain an ISO certificate if you are registered under Udyam.
  • Get exemptions under Direct Tax Laws.
  • You can get financial support to participate in foreign expositions.
  • Open your current account without any Hassle.
  • One of the main Udyam Registration benefits is excise and indirect taxes.
  • You can book trademarks and patents at a low price.
  • You can also get a discount on your electricity bill if you have done your Udyam Registration.
  • Protection against delayed payments under MSME Samadhan is another such benefit you get under Udyam Registration. 
  • Get Technology and quality up-gradation support.

 

Eligibility for Udyam Registration

Any person who thinks to build a micro, small, and medium enterprise may apply online for MSME / Udyam Registration.

Anyone who intends to establish a Proprietorship, Partnership Business, Limited Liability Partnership (LLP), Private Limited or Limited Company, Co-operative Societies, or falls under Hindu Undivided Family (HUF) or any other group of individuals can easily apply for the MSME.

The purpose is to include the wide range of categories of different enterprises for registration under this Act and ensure that the benefits offered by Government through various upliftment schemes reach a large portion of Society.

 

Documents required for the MSME / Udyam Registration

To complete the Udyam registration process, the applicant will only need to provide their Pan card details, 12-digit Aadhaar Number, Bank Account Number, and other correspondence details of the business for the registration process.

 

Fees for MSME / Udyam Registration

Udyam (MSME) Registration is Free of Cost and paperless. No online or offline agency is authorized to charge any fees. 

 

Process of MSME / Udyam Registration

Udyam Registration process is simple, and it seeks relatively more minor information than its predecessor. Below are a few steps to get your enterprise registered under MSME for obtaining Udyam Registration.

 

Step 1: Visit the Udyam Registration Portal to get your Udyam registration done.

 

Step 2: Enter the name of the entrepreneur and 12 digit Aadhar number, which is linked to the registered mobile number. The Aadhaar Number needs to be of the proprietor in the case of a proprietorship firm, of managing partner in the case of a partnership firm, and a Karta in the case of a Hindu Undivided Family (HUF), and in the case of a Company or a Limited Liability Partnership or a Trust or a Cooperative Society, the organization or its authorized signatory shall provide its GSTIN (As per the applicability of CGST Act 2017, and as notified by the Ministry of MSME in vide S.O. 1055(E) dated March 05, 2021) and PAN along with its Aadhaar number. Validate and generate OTP.

 

Step 3: Input the type of social category and organization followed by the PAN details and validate.

 

Step 4: After PAN Validation, you need to enter the name of the business and its correspondence details, including the date of incorporation, followed by the mobile number and e-mail id.

 

Step 5: Fill in your bank details which include, Bank Account Number and IFSC Code. 

 

Step 6: Enter your enterprise details like the type of activity of your enterprise from the "service" or "manufacturing." Followed by the total number of persons employed, the total amount invested in the business, National Industry Classification(NIC) Code for Activities.

 

Step 7: In this step, select the district industry center from the provided drop-down list. Then, accept the declaration and click "Submit and Get final OTP." Enter the OTP received on your registered mobile number and click on the "Final Submit" button.

You will receive a registration number. Afterwhich, the Government verifies all your information, and you will receive an E-registration document on your e-mail id.

Once your business' registration is complete under Udyog Aadhar, you would need solid, reliable, and comprehensive business accounting software to begin your day-to-day financial and business operations. You can easily achieve this by getting the most popular accounting software.