Udyog Aadhaar registration can benefit your SME

Udyog Aadhaar registration can benefit your SME

Legal & Compliance

Jyothi Karthikeyan Karthikeyan

Jyothi Karthikeyan Karthikeyan

10 May 2018, 09:36 — 5 min read

Registering your SME on the Udyog Aadhaar portal, can be beneficial for your SME. The government, in its bid to promote entrepreneurship has created several benefits for SMEs ranging from concessions in banking services to provision of subsidies. Read more to find out more about whether your business qualifies as an SME and how to register.

 

 

What are MSME Enterprises?

MSME enterprises of manufacturing sector can be categorised on the basis of amount invested in plant and machinery:

 

  • Micro enterprises – Entities investing less than INR 25 lakhs in plant and machinery
  • Small enterprises – Entities investing between INR 25 lakhs and INR 5 crores in plant and machinery
  • Medium enterprises – Entities investing between INR 5 crores and INR 10 crores in plant and machinery

 

MSME enterprises in the service sector can be categorised on the basis of amount invested in equipment.

 

  • Micro enterprises – Entities investing less than INR 10 lakhs
  • Small enterprises – Entities investing more than INR 10 lakhs but less than INR 2 crores
  • Medium enterprises – Entities investing INR 2 crores but less than INR 5 crores

 

Registration process

The Udyog Aadhaar portal is the one-stop shop for signing up. Here are some other important points to remember:

  • If an entrepreneur wants to register in more than one industry they should opt for individual registration.
  • The form requires self-certification for business and banking activity and ownership details and so on.
  • Self-certified certificates will have to be provided
  • There are no fees
  • After filling the one page form and uploading it or submitting a registration number will be generated and this would be mailed to your email address which will contain unique UAN (Udyog Aadhaar Number)

 

Requirements for the form 

The Aadhaar number is now a requirement for registering under MSMED act. An application is to be filed online using Udyog Aadhaar Registration, and this can be verified using e-Aadhaar OTP.

 

Obtaining the Udyog Aadhaar requires you to provide 14 points of information on the online form on the Udyog Aadhaar website:

 

1. Aadhaar Number

2. Name of Owner – The applicant name as mentioned on the Aadhaar Card

3. Social Category

4. Name of Enterprise – Separate entities will have to be registered individually under Udyog Aadhaar

5. Type of Organisation – Type of business entity or legal entity.

6. Postal Address – Address of the business including mobile and email address.

7. Date of Commencement – The date on which businesses was started.

8. Previous Registration Details

9. Bank Details

10. Major Activity – Manufacturing or service.

11. NIC Code – The appropriate NIC Code should be entered from the National Industrial Classification (NIC) handbook.

12. Number of persons employed

13. Investment in Plant & Machinery / Equipment – Amount of money invested in terms of machinery and equipment by the business.

14. DIC – Details of the District Industry Centre nearest to the business

 

Registration benefits

After registering their MSME, the applicant will receive the benefits of all the government schemes such as an easy loan, loan without guarantee,  loans with subsidised rates of interest etc.  The applicant will receive financial support for participating in foreign expos to showcase their products and will also be eligible for government subsidies. Registration would facilitate hassle-free opening of current bank accounts in the name of the business. It would also allow SMEs to apply for government micro-business loans and other such related beneficial schemes.

 

To explore business opportunities, link with me by clicking on the 'Invite' button on my eBiz Card.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views, official policy or position of GlobalLinker.

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