Udyog Aadhar is a 12-digit government identification number provided by the Ministry of MSME to the Small and medium enterprises when they register themselves. Unlike other entities, a sole proprietor does not have official recognition of the business. So, Udyog Aadhar registration is highly advisable to them since it provides them an official recognition from the government of India. It validates their existence as well. Nevertheless, other business entities can also register themselves and avail Udyog Aadhar benefits.
Let’s take a look at the benefits of registration.
Udyog Aadhar Benefits
Given below is the list of advantages that an enterprise will get after Udyog Aadhar registration:
- It protects against delay in payments.
- Collateral-free business loans
- A fast solution to various disputes
- Octroi tax benefits
- Stamp duty & registration fees waiver
- Eligibility for IPS subsidy
- Subsidy on barcode registration
- Excise exemption scheme
- NSIC Performance and Credit Rating subsidy
- Lower business loan interest rates
- Exemption on interest on overdraft
- Electricity bill concession
- Numerous exemption under Direct Tax Laws
- Counter guarantee through CGSTI
- Exemptions when applying for government tenders
- Consideration while taking part in the international trade fair
- Subsidy for technology upgradation under CLSS scheme
- Increasing eligible loan limit
- Raising the guarantee cover extent, from 75% to 80%
- Payment reimbursement for getting ISO certification
- Subsidy on patent registration
- Preference during the allocation of government tenders
- Easier registration
- Easier approvals when obtaining licenses
- Reservation of the products for manufacturing by MSME
The above mentioned are some benefits of registration with Aadhar for business. Apart from these benefits, when a new government scheme is introduced, the registered business gets the same benefits as well.
An enterprise can register itself very easily. The steps are very straightforward. For the registration, the enterprise does not need to get any form attested by a professional. Also, the Indian government does not charge registration fees for it. And the registration can be done online as well as offline.
Frequently Asked Questions
Every type of business entity including one-man company, proprietorship, partnership firm, manufacturer, producer, limited company, private limited company, limited liability partnership firm, co-operative societies, etc. are eligible for Udyog Aadhar registration.
MSME registration and Udyog Aadhar Registration both are similar but different. Udyog Aadhar is just an easy way of acquiring MSME registration. Udyog Aadhar Registration is an online method by which an MSME can get the 12-digit Udyog Aadhar Number. And, later go for MSME registration.
There is no registration fee for filing Udyog Aadhar Memorandum.
Udyog Aadhaar is a twelve digit Unique Identification Number provided by the Ministry of Micro, Small and Medium Enterprises, Government of India for small and medium enterprises, beginning in September 2015. It is also known as Aadhaar for Business.
Having Aadhaar Number is not mandatory for registering an MSME under Udyog Aadhaar.
The Udyog Aadhar can be used to get current Bank Account. Udyog Aadhar is treated as a Business registration certificate for Micro, Small and Medium Enterprises. The Small and Medium firm Who have Udyog Aadhar registration can apply for current Bank account.
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