In recent months, the Indian government has made a number of steps to assist small businesses, including providing security for MSME loans. The registration programme for Udyog Aadhar is one of the most recent steps in this approach.
You’re undoubtedly perplexed if you’ve never heard of Udyog Aadhaar for MSME registration. Let’s have a look at the advantages, features, and methods of Udyog Aadhar and MSME registration.
The Udyog Aadhar process offers your company with a registration certificate as well as a unique number known as your Udyog Aadhar number. Small and medium-sized enterprises are the focus of this campaign. The goal of Udyog Aadhar is to give businesses the broadest possible access to government programmes.
There are a few basic conditions to meet in order to register for Udyog Aadhar and take advantage of all of the Udyog Aadhar benefits. The UAM (Udyog Aadhar Memorandum), which is a self-declaration form, is the most important thing of this straightforward process. The full technique is described in detail here.
- The one-page form can be completed online or offline. By visiting the government’s official MSME website, you can register for the MSME programme online.
- Individual registration is recommended if you want to register for many industries.
- To self-certify your firm, business activity details, bank details, employment and ownership details, and other information on the form, self-certified certificates will be necessary.
- There are no charges for filling out this form.
- Following the submission of the form, a registration number, as well as your company’s unique Udyog Aadhar Number, will be generated and mailed to you (UAN).
Let’s look at the Udyog Aadhar perks now that you know how simple the process is.
- One of the most important benefits of enrolling for Udyog Aadhar is that you will be eligible for a number of government programmes, such as microbusiness loans, unsecured MSME loans, reduced rates, and easy loans.
- Participation in international expos is eligible for financial assistance.
- The process for establishing a current account will be simplified.
- The exemption from excise and indirect taxes is one of the most important Udyog Aadhar benefits.
- On trademark and patent applications, you will be able to save money.
- You will also see a reduction in your electricity cost.
This new effort aims to provide business owners with a better choice between MSME and Udyog Aadhar registration.
Now that you’ve learnt about Udyog Aadhar, let’s compare MSME registration to Udyog Aadhar to discover how they differ.
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UAM is a one-page registration form that serves as a self-declaration format for MSMEs to self-certify their existence, bank account information, promoter/owner Aadhaar information, and other required information. The submission of the Udyog Aadhaar Memorandum is free of charge. Udyog Aadhaar Acknowledgement will be prepared and mailed to the email address provided in the Udyog Aadhaar Memorandum, which will include the unique Udyog Aadhaar Number (UAN).
Existing businesses that have filed an Entrepreneurship Memorandum-I, Entrepreneurship Memorandum-II, or both, or who have a Small Scale Industry registration prior to the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), are not required to file an Udyog Aadhaar Memorandum, but they may do so if they wish. Filing several Udyog Aadhaar Memorandums with the same Aadhaar Number is not prohibited.
The Udyog Aadhaar Memorandum is filed on a self-declaration basis, and no supporting documents are required to be uploaded or submitted when filing the Udyog Aadhaar Memorandum. However, the Central Government or the State Government, or such person as may be authorised in this behalf, may seek documentary proof of the information provided in the Udyog Aadhaar Memorandum if necessary.
The MSMED Act allows for a number of schemes, subsidies, and incentives to help MSMEs, which are India’s economic backbone. To take advantage of these perks, you must register your MSME, although it is not needed.
Although the MSMED Act does not mandate MSME registration, registration can provide MSME with a variety of benefits as well as access to subsidies and initiatives. The procedure for registering an MSME is as follows:
- The applicant must complete the application with the needed information, including the GST number, firm name, registration number, and other information.
- The applicant must provide personal information such as name, address, PAN number, bank account information, a photograph, and so on.
- Following the submission of the application, it will be further processed and examined by an official executive. If there are any differences, the executive will notify the applicant so that modifications can be made to the application.
- The applicant will obtain a digital MSME registration certificate after the application is approved.
- Fill out the application with the firm’s name, registration number, GST number, and other necessary information.
- Fill up your personal details, such as your name, bank account information, address, PAN, and a photograph.
- Your application will be handled and reviewed by an official executive, and if there are any discrepancies, you will be asked to make changes.
- After that, you will receive your digital MSME registration certificate.
- All state and federal government programmes are available to you.
- Subsidies, MSME loans, and other types of business financing are all readily available.
- Possibility of obtaining a bank loan with a lower interest rate (1 percent to 1.5 percent ).
- The benefits of tax credits.
- Government tenders are now more accessible to MSMEs.
- At a lower cost, you can register for a patent.
- Licenses and certifications from the government are preferred.
Although the MSME and Udyog Aadhar registration processes are quite similar, they are two independent projects. MSME registration can be easily obtained using Udyog Aadhar. You can apply for MSME registration easily after you have your 12-digit Udyog Aadhar number. To gain the greatest benefits, it’s a good idea to register your company for both MSME and Udyog Aadhar.
MSME Registration and Udyog Aadhaar is a private registration consultancy that provides firms with ISO certified assistance in obtaining and collecting MSME/Udyam/Udyog Aadhaar online registration and MSME Udyam certificate.