The creation of the Ministry of Micro, Small, and Medium Enterprises (M/o MSMEs) demonstrates the MSME sector’s economic importance in the national economy. MSMEs produce revenue and jobs, which have helped to close the income gap between affluent and poor.
The Indian government has recognised the importance of its role in eliminating economic disparities. As a result, with the launch of Udyog Aadhar, they have not only improved the status of MSMEs but also altered India’s economic landscape.
So, if you’re feeling a little overwhelmed by the Udyog Aadhar Certificate, fees, and registration procedure.
Continue reading about udyog aadhaar!
What exactly is Udyog Aadhar?
Udyog Aadhar is a service established by the Indian government to simplify the registration procedure for small and medium-sized enterprises (SMEs). Udyog Aadhar, formerly known as MSME registration, is a certificate created under the MSME Act of 2006. It recognises MSMEs and assigns them a unique number combination.
To stimulate the economy, the Indian government combined the old MSME registration with Udyog Aadhar registration. One of the major motivations for this effort was the fact that MSMEs contribute to the employment market and are a growing sector.
One that can diversify and is highly absorbent of both skilled and unskilled labour. MSMEs enabled the modernization and industrialization of backward and rural regions, resulting in a more equal distribution of national revenue. Another area that MSME encourages via expansion is socioeconomic growth.
In light of this, the Micro, Small, and Medium Enterprises Development Act of 2006 addressed the policy challenges confronting MSMEs and intended to assist the MSME sector’s growth. The statute was the first step toward recognising MSMEs as businesses. All the micro small medium business should register under the new portal of MSME and get udyam registration certificate and avail various government benefits.
While the federal government has taken the lead, it recognises the importance of the state government’s position as a facilitator. As a result, the federal government has provided state governments with M/o MSME, which assists the states in supporting MSMEs.
Advantages of Udyog Aadhaar certificate
Benefits of UDYOG Aadhar MSMEs that get an Udyog Aadhar certificate are eligible to the following benefits:
Without a mortgage or security, a bank loan of up to INR 1 crore is possible.
When securing government bids, special consideration is given.
The interest rate on bank overdrafts has been reduced by 1%. (OD)
Electricity bill reduction
Refund of taxes
Exclusive 50 percent savings on trademark and patent administration fees
Buyers’ payment delays are protected under the constitution.
Issues are dealt with as soon as possible.
The Udyog Aadhar certificate also comes with the following assured benefits:
SMEs can profit from octroi.
Reduces the interest rate on bank loans
NSIC and IPS subsidies, as well as credit ratings
Payment for the ISO certificate
Access to worldwide business exhibitions and trade shows
Excise, tax, and government tenders are exempt.
MSME and SSI earmarking particular items for exclusive manufacture
Benefits from states and union territories
Previously, the MSME registration procedure was time-consuming, cumbersome, and complicated. With Udyog Aadhar, however, one may easily apply for the certificate from the comfort of their own home.
The UAM (Udyog Aadhaar Memorandum) can be filled out with a self-declaration in addition to the data of the business. The Udyog Aadhar application is free of charge and may be used for a variety of purposes.
Udyog Aadhar Guidelines
When filling out the form for the Udyog Aadhar Certificate, certain rules must be followed.
The applicant’s Aadhar number must be entered into the appropriate field.
The applicant must ensure that the name on the Udyog Aadhar form matches the name on the Aadhar Card provided by UIDAI.
After completing the form, candidates must click Validate Aadhar to begin the online verification procedure. The applicant will be unable to proceed unless the Aadhar card is correctly validated. If there is a problem with a particular Aadhar Card, or if the applicant wishes to add the Aadhar number and name of the office.
The applicant must indicate the Social Category to which he or she belongs. Applicants who are SC, ST, or OBC must show proof of caste identification to the proper authority.
The applicant must provide the name of his or her business. A single applicant might have several enterprises; thus, they can apply for each one separately or for the same Aadhar Number as Enterprises 1, 2, and so on.
The applicant must select the sort of organisation for his or her endeavour from the drop-down menu, and the venture must be legally or government-approved.
To acquire the Udyog Aadhar Certificate, the applicant must submit the entire postal address, including state, district, pin code, cellphone number, and email.
The applicant must also include the date his or her business was founded.
In addition, the applicant must give information on past registrations. If the company has previously been given a valid EM-I/II by the relevant GM (DIC) in accordance with the MSMED Act 2006 or the SSI registration prior to the present act, this number must be provided in the appropriate field.
The applicant must also submit his or her bank account information, which will be utilised for commercial activities relating to the firm.
Details such as the IFS code, branch and bank names are required. All banks’ passbooks and cheque books include the IFSC code.
The applicant must choose the sort of Major Activity that the company is carrying out. It might be either a manufacturing or a service business.
The applicant may pick a code from the National Industrial Classification—2008 (NIC) for the specified “Major Activity.”
The applicant must also give details about the company’s employees and their salaries. Plant, machinery, and equipment information must be supplied.
The costs of pollution control, research and development, and industrial safety measures are not included in the overall investment in the business. Only the initial total amount of investment is considered.
In the relevant field, the applicant must indicate the location of DIC. This only occurs when a district has more than one DIC.
When the applicant selects the Submit button, he or she will be given an acknowledgement udyam registration number.