Description – Why you should go for MSME registration? The process is very simple and it is very important to avail various government schemes for your business.
Also known as Aadhar for Business, Udyog Aadhar is a unique identification number of 12 digits issued by the Ministry of MSME for SMEs (small and medium businesses) for registration as MSME. Unlike any other business entity, a sole proprietor doesn’t have any official recognition. Hence, Udyog Aadhar is very important for sole proprietors who don’t have been authorized by the government. It is recommended for sole proprietors to get official registration and unique identity with the Government of India to ensure the validity of the existence of the business.
Other types of businesses can also register for Udyog Aadhar who has official recognition and get other benefits.
Benefits of Udyog Aadhar Registration
There are several benefits of online MSME registration for the entrepreneurs as per the existing MSME scheme announced by the Government of India. You can easily avail the benefits of business schemes of central and state governments for your business. Along with it, there are other benefits to look for –
Easy Bank Loan Process
By getting MSME registration for your business, you can avail smooth bank loan process and collateral-free loans from banks where there is no need to pledge the property with your bank. This benefit can be availed by all the small and medium businesses.
All the small and medium businesses can avail the benefits provided under government schemes with MSME registration. This way, you can easily improve the overall production at your premises. The more you improve the production, the more you can enjoy those opportunities.
Join International Business Fairs
Do you want to be part of international trade fairs? You shouldn’t miss this opportunity if you want to grow. For doing this, you have to do MSME registration online. It goes without saying that you can get huge exposure whether your business is small or medium.
Save on Stamp Duty and Registration Fees
You would also want to save money as a business owner. Be sure to do MSME registration if you want to save money on registration and stamp duty. You can always grab discounts on these charges whether your business is small or medium.
Open Your Business Account with Ease
You can easily open your business account in any Indian bank if you are running a business with MSME registration. It is yet another advantage to go with this option.
Who should do the MSME Registration?
Whether you are running a proprietorship, one-person organization, Hindu Undivided Family, Partnership, limited company, production company, limited liability partnership, private limited company, co-operative society or any association or undertaking, you can get Aadhar Udyog Registration.
There are specific criteria that a business should meet to be considered as small, medium or micro enterprise when it comes to obtaining MSME registration. If you are the owner of an enterprise or a company, you need to find out if your business is classified as small, medium or micro-industry under the MSME Act, 2006 to know if you are eligible for MSME registration.
How to Apply for Udyog Aadhar Registration?
It is very easy to register for Udyog Aadhar Registration and the process of filling the form is very simple. Today, this system is quite relaxed and it takes relatively fewer details as compared to EMI/II process. Things are way too easier than before. Here are the detailed steps for MSME registration –
First of all, visit the official Udyog Aadhar Registration website for online registration.
Enter your personal details. You need to first enter your name and 12-digit Aadhar number. You will get OTP on the mobile number registered with it by clicking “Validate & Generate OTP”. Enter the OTP and select the social category from SC, ST, OBC, and General.
Note – Remember that Udyog Aadhar Registration is an online portal for individuals who have Aadhar Card and enterprise. If a person doesn’t have Aadhar card, they can also register for UAM by consulting with the GM (General Manager) of the concern District Industries Centre (DIC). The government of India is going to address the problems of entrepreneurs without Aadhar card in the near future.
Fill in the details related to your business entity or enterprise. As an applicant, you will be required to fill the name with which the entity will be recognized with the customers and the public. You need to file a separate registration for more than one enterprise or entity. You can fill the form as Enterprise 1, Enterprise 2, and so on. From the drop-down, select “Type of Organization”.
Fill up the contact details. After completing all the above details, you will have to furnish the complete address of your business entity, company or enterprise, including the city, state, pin code, mobile number, and email address.
Now you need to select the date when your business was started from the calendar. You have to provide details about previous registration with SSI, EM2, and EM1, along with UAM registration number.
Enter the bank account number with the IFSC code of the branch where the account of your enterprise is active. You can get the IFSC code of the specified branch from the official website of the bank.
Fill the details of your enterprise. Mention the specific activity of your business like manufacturing or services. If you provide a combination of both options, things can get complicated. In that case, choose the category which includes most portions of your business operations. For example, if your business performs 20% of manufacturing and 80% of service operations, you can choose services.
Enter your financial details. Once you have filled all the above details, you need to enter the number of workers you have as well as the total investment (in lakhs) in your business.
Accept the declaration and select the District Industry Center in the final step. Open the drop-down and select the district industry center. Later on, accept declaration and submit application to finish process. Finally, the acknowledgment number will be provided.
Required Documents for MSME Registration
Here are the documents and details you have to submit to complete the registration process for Udyog Aadhar number –
Your name and Aadhar number (according to Aadhar card)
Document as proof for social SC, ST, and OBC category
Name of your enterprise or organization
Account details and current address
Type of organization
Registration details of your company
National Industrial Classification Code (NIC)
Total workers in your organization
Existing activities in your company
Mobile number and email ID of entrepreneur
PAN number and total investment by the owner
Now that you know the different benefits of MSME registration for your business, you can easily register your business with Udyog Aadhar. You can file it on your own without any help.