Udyog Aadhar registration is a government initiative that provides a unique identification number to micro, small, and medium enterprises (MSMEs) in India. The registration process is free and online, making it easy for entrepreneurs to register their businesses.
To obtain Udyog Aadhar registration, the applicant needs to visit the official website of the Ministry of Micro, Small, and Medium Enterprises (MSMEs) and provide basic information about their business, such as the name, address, type of organization, and bank details. The applicant also needs to provide information about the main business activity, investment in plant and machinery, and the number of employees.
Once the application is submitted, an acknowledgement number is generated, which can be used to track the status of the application. The Udyog Aadhar certificate is issued online and can be downloaded from the website. The certificate includes details such as the Udyog Aadhar number, name of the enterprise, and other relevant information.
Obtaining Udyog Aadhar registration can provide various benefits for micro, small, and medium enterprises (MSMEs) in India. Some of the benefits are as follows:
Easy access to government schemes
MSMEs registered under Udyog Aadhar can easily avail of various government schemes and incentives aimed at promoting and supporting small businesses. These schemes may include credit-linked capital subsidy, technology upgradation, and marketing assistance.
Priority sector lending
Banks and financial institutions prioritize lending to MSMEs that have Udyog Aadhar registration, making it easier for businesses to obtain loans at competitive rates.
Income tax exemption
MSMEs with Udyog Aadhar registration can avail of income tax exemption under the Micro, Small, and Medium Enterprises Development Act, 2006.
Protection against delayed payments
The government has introduced provisions to protect MSMEs against delayed payments from buyers, and Udyog Aadhar registration can help businesses avail of these benefits.
Participation in trade fairs
MSMEs with Udyog Aadhar registration can participate in domestic and international trade fairs organized by the government, which can help them showcase their products and expand their market reach.
To be eligible for Udyog Aadhar registration, a business must meet the following criteria
Type of organization: The business should be a micro, small, or medium enterprise as defined under the Micro, Small and Medium Enterprises Development Act, 2006.
Turnover limit: The turnover of the business should not exceed Rs. 250 million for manufacturing enterprises and Rs. 100 million for service enterprises.
Investment limit: The investment in plant and machinery for manufacturing enterprises should not exceed Rs. 50 million, while for service enterprises, the limit is Rs. 10 million.
Aadhar number: The applicant must have a valid Aadhar number, which will be used as a primary identification document for registration.
PAN number: The applicant must have a valid PAN (Permanent Account Number) issued by the Income Tax Department.
Other details: The applicant needs to provide basic information about the business, such as the name, address, bank details, main business activity, number of employees, and other relevant information.
Differences between Udyog Aadhar registration and MSME registration
Udyog Aadhar registration and MSME registration are two terms that are often use interchangeably, but they are not the same. The following are the differences between Udyog Aadhar registration and MSME registration:
Mode of registration
Udyog Aadhar registration is an online registration process, while MSME registration can be done online or offline.
Nature of registration
Udyog Aadhar registration provides a unique identification number to MSMEs, while MSME registration is a process of getting the business recognized as an MSME.
Validity of registration
Udyog Aadhar registration does not have an expiry date and remains valid until the business is close, while MSME registration needs to be renewe periodically.
Documents require
Udyog Aadhar registration requires only basic information about the business and the owner, while MSME registration requires more documents, such as business registration certificate, PAN card, and bank statement.
Cost of registration
Udyog Aadhar registration is free of cost, while MSME registration involves a fee depending on the category of the business.
Coverage of businesses
Udyog Aadhar registration is open to micro, small, and medium enterprises, while MSME registration is limite to only micro, small, and medium enterprises.
Classification based on investment and turnover
Udyam registration classifies MSMEs base on their investment and turnover, unlike Udyog Aadhar registration, which classifie MSMEs base on only their investment.
Under Udyam registration, MSMEs are classifie base on their investment and turnover. The investment limit and turnover limit for each category are as follows:
- Micro enterprises: Investment up to Rs. 1 crore and turnover up to Rs. 5 crores.
- Small enterprises: Investment up to Rs. 10 crores and turnover up to Rs. 50 crores.
- Medium enterprises: Investment up to Rs. 50 crores and turnover up to Rs. 250 crores.
This new classification base on both investment and turnover provides greater clarity and transparency in the MSME sector. It also allows for a more accurate classification of businesses, which helps the government to provide targete benefits and incentives to different categories of MSMEs. MSMEs should ensure that they accurately declare their investment and turnover details during Udyam registration to receive the benefits they are eligible for.
Single form
Udyam registration provides a single registration form for MSMEs, which replaces multiple forms require under Udyog Aadhar registration.
Online verification
Udyam registration provides online verification of PAN and GSTIN, which makes the process of registration more efficient.
Self-declaration
MSMEs can self-declare their status for registration under Udyam registration, which eliminates the need for any documentation or certificates.Under Udyam registration, MSMEs can self-declare their status for registration, which eliminates the need for any documentation or certificates.
This means that MSMEs do not need to provide any proof of investment, turnover, or any other details at the time of registration. The self-declaration system is base on the principle of trust, and MSMEs are require to provide accurate information to the best of their knowledge.
The self-declaration system is a major benefit of Udyam registration as it eliminates the need for MSMEs to provide any physical documents or go through a lengthy verification process. This makes the process of registration more efficient and less time-consuming. However, it is important for MSMEs to ensure that they provide accurate information during self-declaration, as any incorrect information can lead to penalties and legal repercussions.
Ease of updating
Udyam registration provides a simplified process for MSMEs to update their details, such as investment and turnover, as and when required.
Conclusion
Udyog Aadhar registration can provide several benefits to MSMEs and can help them access various government schemes, obtain loans, and protect against delayed payments. Therefore, it is advisable for all MSMEs to obtain Udyog Aadhar registration and avail of the benefits provided by the government.
