Micro Small and Medium Enterprises considered as the backbone of India’s economy. It’s anticipated that this sector would influence India’s GDP by approximately 50% and possesses the potential to provide around 15 crore jobs within the next 5 years.
The Indian Government have come up with different measures, like Udyog Aadhaar, to fuel the overall growth of this sector and create a strong ecosystem in the near future.
What is Udyog Aadhaar?
Udyog Aadhaar or Aadhaar for Business is a cataloguing system, using a 12-digit Unique Identification Number.
This policy rolled out in September 2015. Udyog Aadhaar registration process is free of charge as this policy was introduced to assist micro small and medium enterprises.
Reports suggest that approximately 48 lakh companies have registered and availing various benefits extended by this policy.
What are the benefits of Udyog Aadhaar?
After registering through Udyog Aadhaar, an enterprise can avail different government policy and loan subsidy. Other than that, an individual can avail low-interest rate, unsecured loan, etc. as well after successful registration with this system.
As this policy aims to provide overall growth, protection and development of the MSME sector, there are various benefits extended.
The Udyog Aadhaar benefits are as follows:
- Protection against delayed payment
- Reduced interest rates over loans
- An entrepreneur does not require their property as collateral to avail a business loan
- An individual can participate in an international trade fair
- Quicker resolution over loan dispute
- An individual does not require to pay for registration or stamp duty fees
- An MSME entrepreneur can avail Counter Guarantee from GOI through CGSTI
- An individual can avail subsidy over Credit Ratings
- An individual can avail up to 15% subsidy over technology upgradation
- Udyog Aadhaar registration process is simple, and by applying one can avail subsidy over utility bills
- Other than that, one can avail 1% subsidy on OD
- One can also avail reimbursement of payment for availing ISO certification
- Reservation over products for MSME manufacturing
- One can easily register and avail business license
- By registering under Udyog Aadhaar, one becomes eligible for IPS subsidy
- One can avail preference for Government tenders
Other than applying under Udyog Aadhaar, an entrepreneur can also avail other Government policies like the Prime Minister’s Employment Generation Programme (PMEGP full form).
One can also avail different initiatives like a business loan extended by private lenders. Such loans are known to be financially beneficial and an individual should opt for an option sufficing their financial requirements.
Entrepreneurs aiming to apply under Udyog Aadhaar should follow a few steps to register online.
Udyog Aadhaar steps to register online:
- An individual should navigate to the online portal of Ministry of MSME to register as an organisation under Udyog Aadhaar.
- After that, an individual or an organisation should enter their Aadhaar details.
- The third step for online registration is a declaration of an applicant’s personal details.
- The next step for applying is to validate an individual’s Aadhaar details. By clicking on a “Validate and Generate OTP,” one can certify their form and fill up further.
- An individual is subjected to fill up the following essential details for their Udyog Aadhaar registration process –
- Aadhaar number
- An individual should mention if they belong to any backward community
- An applicant will have to select their gender
- If an individual is physically handicapped, they should mention it in this form
- Name of their respective organisation
- An entrepreneur will have to provide their PAN number
- A step of Udyog Aadhaar registration process is to determine the location wherein an entrepreneur’s enterprise is situated
- After that, an individual is subjected to provide their business’s permanent address
- An applicant also has to mention the legal date of commencement of their business
- If an entrepreneur already applied under Udyog Aadhaar but for some technical error is subjected to re-issue should provide their previous Unique Identifier Number
- An individual should provide their company’s bank details
- Entrepreneurs should mention the area of work their company focuses
- An applicant should provide their NIC code
- After that, it is necessary to mention the total number of employees working in a company
- An individual will have to declare the total number of their investments
- An applicant is subjected to provide their location of DIC
After sharing all these above-mentioned details, an individual can submit their application there are various benefits extended by Udyog Aadhar, but an entrepreneur should compare their options. An individual can avail an MSME loan which is considered to be an efficient financing solution.
Such loans are extended by different NBFCs. Moreover, financial institutions like Bajaj Finserv provides different borrower-friendly facilities like pre-approved offer which guarantees to save time.
Different policies have varied benefits, for example, Udyog Aadhaar registration process is simple and free of charges. Whereas, MSME Loan have benefits like full control and an entrepreneur should opt for a policy according to their requirements.
Carefully utilising these types of credits can help overcome any financial shortcoming faced by SMEs and MSMEs across the nation.