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.
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.
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.
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.
Now that you understand the benefits of Udyog Aadhaar, you must also understand the registration process in detail.
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.
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.
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.
Provide the complete address, including the pin code, district, email address, mobile number, and state.
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.
Enter the details of your company’s bank accounts along with the IFSC code for the particular branch.
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.
After filling everything else, choose the number of workers your company employs along with the amount of investment in the business.
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.
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