Udyam Aadhaar is a unique identification number provided by the Ministry of MSMEs to Small and Medium Enterprises in India. It is a digital platform that enables entrepreneurs to register themselves under MSMEs and avail of benefits provided by the government to these enterprises.
Udyam Aadhaar has emerged as a game-changer for the MSME sector in India, as it offers various advantages to these businesses. In this article, we will discuss how to get benefits from Udyam Aadhaar and the significance of Udyam Aadhaar registration.
What is Udyam Aadhaar?
Udyam Aadhaar is a twelve-digit number which is unique for every enterprise. It replaces the earlier concept of MSME registration and provides a single platform for all MSMEs to get registered. The Ministry of MSMEs has launched the Udyam portal as part of the government is Digital India campaign, and the entire process can be done online.
The Udyam portal allows entrepreneurs to register, fill in information about their enterprise, and obtain their Udyam Aadhaar number. The Udyam Aadhaar aims to promote ease of doing business and encourages MSMEs to become self-sufficient.
Advantages of Udyam Aadhaar
- Easy loan availability: One of the significant benefits of Udyam Aadhaar is that it provides easy access to loans for MSMEs. Banks and other financial institutions consider Udyam Aadhaar as a valid proof of registration and offer loans at lower interest rates to these businesses. It eliminates the need for additional documentation and increases the chances of loan approval.
- Subsidies and incentives: The government aims to encourage MSMEs by offering various subsidies, monetary, and non-monetary incentives to these businesses. Udyam Aadhaar enables easy access to these benefits, including subsidies on loans, technology up-gradation, and procurement.
- Government tenders: Many government projects are reserved for MSMEs, and Udyam Aadhar registration is mandatory to participate. Enterprises registered under Udyam Aadhaar can participate in these government tenders and take advantage of the business opportunity.
- Priority sector lending: Udyam Aadhaar registration ensures recognition as an MSME, making priority sector lending easily accessible. Lending institutions have to set aside a percentage of their total lending for MSMEs, and Udyam Aadhaar registration guarantees eligibility for this lending.
- Tax exemption: Registered MSMEs can avail of various tax exemptions under the GST regime, such as GST refunds and reduced tax rates.
- Higher credit ratings: Udyam Aadhaar registration acts as a credibility certificate for MSMEs, enhancing their creditworthiness, and improving their credit ratings.
How to get benefits from Udyam Aadhaar
- Registration: The first step in getting benefits from Udyam Aadhaar is to register as an MSME on the Udyam Portal. The registration process is simple and requires minimal documentation. Entrepreneurs must provide basic information such as their name, Aadhaar number, PAN number, and bank account details. A self-declared memorandum of the enterprise can also be submitted online, and on submission of this information, the business will be issued a Udyam Aadhaar number.
- Verification: After submitting the registration application, an acknowledgment slip is generated with a unique number. The applicant must then download this slip and wait for the verification process. A team will verify the details provided by the applicant and may ask for additional information in case there are any discrepancies. After verifying the information submitted by the applicant, the Udyam Aadhaar is issued. The entire process is online, and no physical documents are required.
- Avail benefits: Once the Udyam Aadhaar is issued, the MSME can avail of various benefits provided by the government, and all information is available on the Udyam Portal. Entrepreneurs can access schemes like Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE), Prime Minister�s Employment Generation Programme (PMEGP), and the Micro and Small Enterprises Cluster Development Programme (MSE-CDP) to expand their business.
Udyam Aadhaar Registration
Udyam Aadhaar registration enables entrepreneurs to register their business online, without any physical documentation to prove their existence. It aims to promote competence, ease of doing business, and entrepreneurship in India by creating a supportive business environment.
Udyam Aadhaar registration requires MSMEs to provide their Aadhaar number, PAN number, bank account details, and self -certified memorandum of the enterprise. The entire process of Udyam Aadhaar can be completed online, and the applicant can obtain their Udyam Aadhaar number in a matter of minutes.
Importance of Udyam Aadhaar registration
Establishing the existence of MSMEs: Udyam Aadhaar registration provides organizations with a unique identification number, which acts as proof of their existence. This unique identification number can be used for all future registrations, loans, and certifications.
Access to subsidies and incentives: The government recognizes MSMEs as an essential contributor to the economy and offers subsidies, incentives, and tax exemptions to these enterprises. Udyam Aadhaar registration ensures easy access to these benefits and creates an enabling environment for entrepreneurs.
Encourages entrepreneurship: Udyam Aadhaar registration is an integral part of the government’s efforts to promote entrepreneurship in India. It provides a single platform for MSMEs to get registered and avail of benefits offered by the government. The government aims to create a supportive business environment for entrepreneurs, and Udyam Aadhaar is an important step in this direction.
Enhances creditworthiness: Udyam Aadhaar registration acts as a credibility certificate for MSMEs and enhances their creditworthiness. Lending institutions consider Udyam Aadhaar registration as evidence of a business’s existence and creditworthiness and offer loans at lower interest rates to MSMEs.
Conclusion
Udyam Aadhaar has emerged as a game-changer for the MSME sector in India, and its benefits are significant for entrepreneurs. Udyam Aadhaar registration provides businesses with a unique identification number, which acts as proof of their existence, enhancing their creditworthiness, and making it easier to access loans at lower interest rates.
It also offers easy access to subsidies, incentives, and tax exemptions, encouraging entrepreneurs and promoting entrepreneurship in India. MSMEs must get registered under Udyam Aadhaar and avail of the benefits offered to grow their businesses.
Read more: How to Get Benefits from Udyam Aadhaar
