The new categorization and registration process for businesses will begin on July 1, 2020, according to a notification issued by the Union Ministry of Micro, Small, and Medium Enterprises (MSME) on June 26, 2020. For this purpose, the company will be known as Udyam, and the registration process will be known as “Udyam Registration“
For enterprises, Udyog Aadhaar is a 12-digit Unique Identification Number. This was implemented by the Indian government in 2015 for small and medium businesses during business registration. This option was created to reduce the amount of documentation required to register a business. Previously, anyone wanting to register a business had to go through SSI or MSME registration and fill out 11 different types of documents.
Registration for Udyog Aadhar:
The registration process for Udyog Aadhaar can be completed in the following simple steps:
- Visit the udyam registration page.
- In the ‘Aadhaar number’ section, type your Aadhaar number.
- In the ‘Name of Entrepreneur’ field, type your name.
- Validate should be selected. Enter the OTP that was sent to your registered mobile phone.
- Fill in relevant fields such as ‘Enterprise Name,’ ‘Type of Organization,’ and ‘Bank Details.’ Check all of the information you’ve entered.
- Submit the form. On your registered mobile number, you will immediately receive another OTP code. Fill in the captcha code with your OTP.
- Submit the form.
Memorandum on Udyog Aadhaar (UAM):
The Udyog Aadhaar Memorandum is a registration form in which an MSME proves its existence by providing information such as the owner’s Aadhaar number, bank account number, and more. After the form is submitted, an acknowledgment form with a unique UAN is emailed to the applicant’s registered email address (Udyog Aadhaar Number).
This is a self-declaration form, thus no supporting paperwork is required. However, keep in mind that a central or state authority may, at their discretion, request supporting paperwork.
Udyog Aadhaar’s Advantages:
- No-Credit-Check Loans:
By registering with Udyog Aadhar, you can obtain a collateral-free loan or mortgage.
- Interest Rate Reduction and Tax Exemption:
Direct tax exemption and lower interest rates are provided by Udyog Aadhaar.
- Application for a Patent:
It’s worth noting that Udyog Aadhaar registration also comes with the benefit of a 50% grant on patent registration.
- Subsidies, concessions, and remuneration:
Government discounts, electricity bill concessions, barcode registration subsidies, and ISO certification reimbursement are all available. If you have an MSME registration, it also provides a subsidy based on NSIC performance and credit rating.
Documents required for registration include the following:
The following are the documents required for registration:
- Aadhar Number (Your twelve-digit Unique Identification Number)
- Business Owner’s Name (Your name as mentioned on aadhaar card)
- (General, ST, SC, and OBC)
- Name of the Company
- Organizational Structure (Proprietorship, Partnership form, Hindu undivided family, Private Limited Company, Co-Operative, Public Company, Self Help Group, LLP, Others)
- Address for Business
- Bank Account Information for Businesses
- Number of previous business registrations (If any)
- Commencement of Business Date
- The Business’s Most Important Activity
- Code of National Industrial Classification (NIC)
- Number of Employees
- Plant/Machinery and Equipment Investment Details
- District Industry Center (DIC).
Points to Remember About Udyog Aadhaar:
- As of July 1, 2020, Udyog Aadhar will be called Udyam Registration.
- The Udyog Aadhaar Document is a recognition certificate that comes with the Udyog Aadhaar.
- With the same Aadhaar number, you can file several Udyog Aadhars.
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Udyog Aadhar is a fantastic and simple approach to register your company. The online procedure has definitely given tremendous simplicity to the corporate sector. With Udyog Aadhaar, you can get business loans and other government subsidies, as well as lower interest rates and tariff refunds.