Small and Medium Enterprises or SMEs are significant contributors to the nation’s GDP. India’s SME sector is relatively stable, with over 80 lakh units operating today, as per official estimates.
One of the reasons behind this stability is the transparent regulation policies put in place by the Ministry of MSME industries.
The Udyog Aadhaar was initialised in 2015 by the M/o MSME and plays a vital role in regulating, supervising, and streamlining the Indian SME landscape.
What is Udyog Aadhaar?
Udyog Aadhaar refers to a system of assigning a unique Aadhaar number to micro, small, and medium companies operating within India.
The primary purpose of introducing this system was to simplify the registration process that enterprises need to undergo during the initial phase of operations.
Before its introduction, the format for registration involved several steps, taking a considerable amount of time. Owners needed to maintain a significant amount of paperwork during this strenuous process as well.
- SMEs account for almost 95% of the total industrial units in India.
Apart from the Udyog Aadhaar’s simple registration process, this updated method has several other benefits as well. These features of the process are drastically changing the landscape for corporations today, radically redefining the way Indian businesses operate today.
Advantages of Udyog Aadhaar Number or UAN
Listed below are the top 9 benefits of registering your business under Udyog Aadhaar:
Keep in mind that these advantages are available through various schemes for MSME registered companies.
- One of the essential things SMEs need to know about GST is that the organisation or the individual can avail exemptions from indirect taxes.
- Companies with UAN can capitalise on reduced fees to file trademarks and patents. SMEs need a solid financial plan, making such savings essential in the overall economic expansion.
- After MSME registration, companies can avail a range of government schemes, such as unsecured business loans, convenient loan approval, and decreased rate of interest on any debt.
- Enterprises can take advantage of credit guarantee schemes.
- Companies possessing the best business ideas and participating in international expos are liable to benefit from government-assisted financial solutions.
- Attractive concessions on utility bills, incurred at the company premises.
- An opportunity to enhance the company’s revenue through the smart use of government subsidies.
- A discounted rate applies to such enterprises when they opt for government tenders.
Now that you understand the benefits of Udyog Aadhaar, you must also understand the registration process in detail.
How to register your business with MSME or UAN
To acquire a valid UAN, you must first visit the official website of the Ministry of Micro, Small and Medium Enterprise. Follow the steps mentioned below for a hassle-free Udyog Aadhaar application process.
- Step 1: Enter your details
Personal details include owner name, Aadhaar number, and more. You must also verify your registered mobile number using OTP. Select whether you belong to the general, SC, ST or OBC section.
- Step 2: Fill in the name of your business
Pick the company name carefully since this is how your company will be known to consumers and clients. You will also need to select the ‘Type of Organization’ from a drop-down list.
- Step 3: Enter the correspondence details for the firm
Provide the complete address, including the pin code, district, email address, mobile number, and state.
- Step 4: Provide carry forward info
Fill up the form regarding the date on which your company commenced operations. Previous registration information is also vital, including EM1, SS1, and EM2. Enter the Udyog Aadhaar registration number as well.
- Step 5: Enter the bank details
Enter the details of your company’s bank accounts along with the IFSC code for the particular branch.
- Step 6: Select the enterprise classification
Choose whether your business is a service provider or a manufacturer. If your operations involve both of these aspects, choose one that reflects the majority of your work.
- Step 7: Investment and employment details
After filling everything else, choose the number of workers your company employs along with the amount of investment in the business.
- Step 8: Choose the district industry centre and submit
The last step involves choosing your preferred district centre from a drop-down list. After doing this, you are ready to submit your application.
While Udyog Aadhaar has made operating in India simpler for such companies, MSME loans have been crucial as financing solutions for businesses. Leading financiers offer such capital finance with attractive interest rates and multiple repayment-friendly tenors.
If you have yet to register your company, make sure you do so immediately. After completion, you can take advantage of the benefits mentioned above.
It is vital for an SME to have a solid financial plan as success in the initial stages of business growth is pivotal to how much the business can expand towards. MSME registration benefits and easy availability of finances can help you do the same.