Udyog Aadhar: Benefits and Registration Process

udhyog aadhar

Meaning of Udyog Aadhar

It is a unique twelve-digit identification number provided by the Ministry of MSME for micro, small and medium enterprises to register themselves as MSME.

In simple words, Udyog Aadhar is an Aadhar for your organization that enables you to take advantage of several benefits that help you grow your business.

Earlier, Micro, Small and Medium Enterprise (MSME) owners had to go through a lot of paperwork. To simplify the whole process, the Government of India initiated the Udyog Aadhar registration process which replaced eleven (lengthy) forms with just two.

 


Who Can Apply For Udyog Aadhar?

Almost all types of businesses - Hindu Undivided Family (HUF), one-person company, Proprietorship, Production company, Partnership firm, Limited company, Co-operative societies, Limited Liability partnership, any other undertaking or associations of person can apply and obtain Udyog Aadhar. However, every entity has to meet the given set of criteria in order to be classified as a micro, small, or a medium enterprise.

 

who all can apply for udhyog aadhar?


Advantages of Udyog Aadhar

There are several benefits of registering and obtaining Udyog Aadhar. Ministry of MSME offers several schemes for the growth, development, and protection of small-scale enterprises. Following benefits can be availed by all Udyog Aadhar holders.


Udyog Aadhar benefits:


  1. Eligible for credit guarantee scheme
  2. Reduced fee for filing trademarks
  3. Excise exemption
  4. Facilitates hassle-free opening of current accounts (in the name of the organization/enterprise)
  5. Eligible for financial support when participating in foreign expos for showcasing their products
  6. Eligible for loans without guarantee
  7. 50% subsidy on registration for patents
  8. Preference in the allocation of govt. tenders
  9. Eligible for IPS subsidy
  10. Easy registration and approval to obtain licenses
  11. Reservation of certain products by SSI and MSME for exclusive manufacturing
  12. The extent of guarantee was raised to 85% (earlier it was 75%)
  13. Increase in the eligible loan limit from ₹25 lacs to ₹50 lacs.
  14. Interest on OD is exempted (1%)
  15. Reimbursement of payments made to obtain ISO certification
  16. Concession/grants in electricity bills
  17. Counter guarantee through CGSTI from Government of India
  18. Other exemptions while applying for govt. Tenders
  19. 15% subsidy for technology upgradation under CLCSS scheme
  20. Reduced interest rates from banks
  21. Subsidy on credit ratings and NSIC performance
  22. Barcode registration subsidy
  23. Direct tax law exemptions
  24. Waiver of the registration fee and stamp duty
  25. Octroi benefits
  26. Promotes the participation in international trade fairs
  27. Collateral free loans can be obtained from the bank
  28. Faster resolution of disputes
  29. Protects against the delay of payments


 Also, read the easiest way to generate an E-way Bill.

 

udhyog aadhar registration process

Documents Required to Register and Obtain Udyog Aadhar


Below, you will find a list of documents along with the details that you will be required to complete the registration process and get Udyog Aadhar for your organization.

 

  1. Name and Aadhar details
  2. Every Aadhar card has a unique twelve-digit number which is issued to an individual. You will need the name and Aadhar number of the owner of the enterprise.

     

  3. Valid identification document
  4. This is required to verify the social category of the business owner - SC/ST/OBC/General.

     

  5. Business/organization's name
  6. Name of the entity under which you are conducting business. A single applicant could have multiple enterprises and all of them can be registered with the same Aadhar number for a different Udyog Aadhar. Also, PAN number of the business owner is required.

     

  7. Registration details of the organization
  8. All the previous MSME registration details are required.

     

  9. Type of business/enterprise
  10. You are required to specify the type of business you run -  Hindu Undivided Family (HUF), one-person company, Proprietorship, Production company, Partnership firm, Limited company, Co-operative societies, Limited Liability partnership, any other undertaking or associations of person.

     

  11. Current address
  12. Postal address of the business or organization (for the purpose of communication) along with email address and contact numbers.

     

  13. National Industrial Classification Code
  14. Enter the NIC Code from the NIC handbook. You can select multiple codes to specify different activities.

     

  15. Key business areas
  16. Details of key areas of activity of business - manufacturing or service.


 

How to register for Udyog Aadhar

The entire registration process is fairly easy and can be done in a few minutes. The process of filling the form is simple and straightforward and seeks less information than the previous process. Moreover, the registration process is completely free for all businesses.


Application for registration can be filed online or offline.

 

Udyog Aadhar application online:

Follow these steps and you’ll be done in a jiffy!


udhyog aadhar registration process

Let us look at them one by one.

 

  1. Go to the official website
  2. The first step of the registration process is to visit the Udyog Aadhar portal.

     

  3. Fill out your personal details
  4. Initially, you’ll be asked to enter your name along with your Aadhar number. To proceed further, click on the ‘Validate and Generate OTP’ button. An OTP will be delivered to the mobile number that is linked with your Aadhar card. Enter and then select your social category i.e. SC/ST/OBC/General.

     

  5. Enter the organization’s details
  6. Start with filling the name of the enterprise and select its type - Hindu Undivided Family (HUF), one-person company, Proprietorship, Production company, Partnership firm, Limited company, Co-operative societies, Limited Liability partnership, any other undertaking or associations of person - from the drop-down menu.

     

  7. Specify the official address
  8. You are required to mention the complete postal address (don’t forget to mention the pin code and information about the district/state) along with email address and phone number of the owner of the business.

     

  9. Enter the date of commencement
  10. The date on which the organization started its business from the given calendar along with all the necessary information regarding any previous MSME registration.

     

  11. Enter the bank details
  12. Fill in the details of the bank account that is associated with the organization along with its IFSC code and the name of the concerned branch.

     

  13. Classify your organization
  14. It is mandatory to classify whether your business activities fall under the ‘manufacturing’ sector or ‘service’ sector. This can be confusing for organizations who deal with both the activities. In that case, choose that category that constitutes for the major portion of your operations in your organization.

    For instance, if 75% of the total operations are related to manufacturing and 25% are related to service, choose 'manufacturing' as the classification of your enterprise.

     

  15. Amount of total investment
  16. Mention the total investment in terms of plant, machinery, and equipment incurred by the business. Additionally, also specify the number of workers/persons/employees working in your organization.

     

  17. Select the DIC
  18. Specify the nearest District Industry Center near your organization from the drop-down list. Once you’re done with all the details we suggest you quickly go through them once and ensure it has no mistakes. Accept the declaration and submit the application.

 

You will get an acknowledgment number which will mark the end of the registration process.

 

Offline application of Udyog Aadhar

Follow these five steps to fill out an offline application:

  1. Apply for an Aadhar card if you don’t have one.
  2. Until the Aadhar card is obtained, application for Udyog Aadhar will be made by MSME-DI or DIC.
  3. Submit your Aadhar enrollment slip or a copy of the requested Aadhar enrollment along with any valid ID proof that can also be used as an address proof.
  4. Fill all the necessary details in the physical form.
  5. Submit it to the MSME-DI or DIC.

Once the submission is completed, you will receive an acknowledgment for the same followed by a Udyog Aadhar number (you will receive this online). You can print your Udyog Aadhar Registration Certificate.

 


How Can I Update or Edit My Udyog Aadhar Number?

If you are an existing Udyog Aadhar holder and want to make any changes to your number, follow the steps given below:

  1. Open the official Udyog Aadhar website.
  2. Enter your existing number
  3. Type in the verification code and click on ‘submit’
  4. Enter OTP received on your mobile number linked with Udyog Aadhar.
  5. Make the necessary edits and then click on ‘submit’. All the changes will be updated.

 

Related Article: How to open and operate a retail store.

 

Shristi Patni

Shristi Patni is a finance and lifestyle expert and currently works at Merrchant.

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