The Indian government launched the Udyog Aadhaar under MSMED Act, 2006 for Micro, Small, and Medium enterprises. Udyog Aadhaar’s aim is to simplify a previously tedious registration process for business owners.
- The scheme was introduced in September 2015.
- Udyog Aadhaar registered around 79.6 lakh enterprises as of November 2019.
Also termed as Aadhaar for Business, this initiative is a completely online process and free of cost. Earlier, the MSME registration process was complicated and hectic, where applicants had to submit 11 different forms.
Udyog Aadhaar Memorandum (UAM) reduced the requirements to only 2 documents –
- Entrepreneur Memorandum-I.
- Entrepreneur Memorandum-II.
Understanding what is Udyog Aadhaar
UAM is primarily a single-page registration form where MSMEs self-certify their existence through essential information. Some of those include Aadhaar details of owner, account details, organization type, social category, other registration details, postal address, etc. While filing up the UAM is not mandatory, there is no restriction on using a single Aadhaar number for multiple memorandums.
The Udyog Aadhaar application being a self-declaration form does not require any supporting document. Any state or central authority may ask for certain papers to verify any information provided if needed.
Before applying, make sure your venture categorizes as a small business according to the difference between SME and startup.
What are the benefits of Aadhaar for Business?
The prime idea of launching this initiative is to provide optimum benefits to registered small and medium businesses in India. Registered businesses are, therefore, entitled to enjoy numerous Udyog Aadhaar benefits.
Below are some of the noteworthy advantages:
- Easy availability of collateral-free loans.
- Attractive interest subsidy on credit.
- Credit guarantee.
- Quick dispute resolution.
- Octroi benefits.
- Barcode registration subsidy.
- Protection against payment delay.
- Registration fee and stamp duty waiver.
- Technology up-gradation with a 15% subsidy under CLCSS.
- Exclusive concessions on electricity bills.
- Consideration and financial support to participate in the international trade fair.
- Eligible for several government loan schemes and additional benefits.
- Exemption on applying for government tenders.
- IPS subsidy eligibility.
- Guarantee cover extension from 75% to 80%.
- Patent registration with a 50% reduction in the fee.
- Product reservations for SSI/MSME manufacture exclusive goods.
Additionally, there are some excellent sources of financing for women entrepreneurs.
What does the registration process involve?
As mentioned, the online registration process of Aadhaar for Business is quite simple.
Step 1: Visit the official website
Once eligible, you need to visit Udyog Aadhaar’s official website to fill up the application form.
Step 2: Fill in the form with accurate details
Provide accurate details to fill up the self-declaration form. Meanwhile, you also have to validate with an OTP on your registered mobile number. Follow the steps accordingly by providing all the necessary details as required.
Step 3: Accept the form
Once you have provided the information, accept the declaration before submitting the form to complete the process.
Small and medium enterprises which are registered under Udyog Aadhaar can then utilize the financial benefits available for growth and expansion. SMEs being the major drivers of economic growth have exponentially increased in numbers.
- Currently, there are around 42.50 million small and medium enterprises in India.
- Every year, SMEs create 1.3 million jobs, employing close to 60 million people.
Therefore, entrepreneurs need to register their businesses and venture into newer markets with adequate financial support.
There are numerous government loan schemes like the Udyogini scheme, MUDRA loan, etc. which are specifically created to financially assist SMEs and MSMEs in India.
If you are looking for high-value loans at reasonable interest rates, you can approach trusted lending organizations for business loans. They offer customized credit to address the unique and diverse requirements of a growing enterprise. You can utilize the funds for –
- Installation of advanced machinery.
- Purchasing raw materials for manufacturing.
- Restocking inventory.
- Opening a new branch.
- Research and training.
- Addressing bulk orders.
- Renovating the office or workplace, etc.
One of the prominent NBFCs in India, Bajaj Finserv brings tailored Business Loans of up to Rs.30 lakh. Besides attractive features and benefits, the lenders also provide pre-approved offers that ease the process of availing loans and also save time. Pre-approved offers are available on business loans, personal loans, and many other financial products.
The government has made commendable efforts to empower small businesses in India. So, register under Udyog Aadhaar to enjoy numerous benefits and scale up your venture to achieve success in today’s competitive market.