Micro Small and Medium Enterprise (MSME) are playing a very important role in India’s growth. It is a dynamic sector which helps in creating more and more employment opportunities for the youth of the nation.
After the MSME Act, 2006 each small and medium businesses have to apply for the MSME registering through the EM-1 & EM-2 forms which were replaced by the Udyog Aadhaar Registration in 2015.
What is Udyog Aadhaar?
Post-September, 2015, the government notified Udyog Aadhaar Registration to avail the government benefits and scheme throughout one page simplified registration. Udyog Aadhaar is 12 Digit business registration unique id called Udyog Aadhaar number which is provided to every small and medium business. It is directly linked to the entrepreneurs Aadhaar number. As a result, it would be easier for the government to keep a track of all the data related to the startup.
Major Difference between old MSME Registration and Udyog Aadhaar?
MSME Registration or SSI Registration was very complicated in terms of the registration. First, entrepreneurs had to file the EM-1 Form before the starting of the business, after that they have to file the EM-2. Submission of the forms, however, did not necessarily mean instant approval for the government. As a result, entrepreneurs were not able to avail the govt loans or subsidy and other benefits under the MSME Act.
But after the introduction of the Udyog Aadhaar Registration, the entire process has now become simplified.
Benefits of the Udyog Aadhaar Registration?
- Under the Udyog Aadhaar, one can get the easy sanction of the bank’s loans on the low-interest rates.
- One can avail the credit guarantee scheme
- One can also get benefits under the Excise and direct tax laws with assistance in the enhancement of the technology in business with marketing & capital support.
- One can also take part in international trade fairs.
Sector Investment Limits as per the MSME Act 2006
The MSME Act has an investment limit which defined the startups or small business under the Micro or Small and Medium Enterprise.
Enterprise Investment in Plant & Machinery
Manufacturing Sector
– Micro Enterprise Does not exceed 25 lakh rupees
– Small Enterprise: more than 25 lakh rupees but can’t exceed 5 Cr.
– Medium Enterprise: more than 5 Cr but not exceed 10 Cr
Service Sector
– Micro Enterprise Does not exceed 10 lakh rupees
– Small Enterprise: more than 10 lakh rupees but can’t exceed 2 Cr.
– Medium Enterprise: more than 2 Cr but not exceed 5 Cr
How to Apply for the Udyog Aadhaar Registration?
To register with this portal, entrepreneurs mostly require the Aadhaar Card and the PAN card with other documents. It is best to have the Aadhaar card linked to the PAN card.
Easy steps to apply for the Udyog Aadhaar Registration
Online mode
- Visit the official website and signup with the Aadhaar card number and insert the exact name which is mentioned in the Aadhaar.
- Enter all the necessary business details and other required details which is asked by the portal.
- The certificate would be sent to the registered email id with the portal. One can then generate the certificate with approval if everything else is fine.
Websites like MyOnlineCa helps generate the Udyog Aadhaar memorandum certificate with faster checkout verification and approval.
Offline Mode
- If one does not have an Aadhaar card then you can make use of the offline mode for the Udyog Aadhaar registration by visiting nearby DIC ( District Industries Center).
- Fill up the offline mode form with the necessary basic documents like pan card or voter id or passport with address proof.
- Govt officer will be issuing an offline certificate with the applicant’s UAM Number to the registered postal address for the same.
Thus, the Udyog Aadhaar Registration is an initiative taken by the Indian government under Digital India to foster the startup ecosystem in the country by making the legal hassles for the budding entrepreneurs simpler to deal with. Till the date, more than 45 lakh Udyog Aadhaar has been registered.
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