Use of Udyog Aadhar

What is Udyog Aadhar and Why is it Useful?

In this article, we’ve shared the main benefits and uses of Udyog Aadhar, along with its key features.

Udyog Aadhar is a 12-digit unique ID number given by the Ministry of MSME to small and medium businesses when they register.

For small businesses like sole proprietors, Udyog Aadhar is especially helpful because they usually don’t have any official government recognition. With Udyog Aadhar, they get that official identity, which proves their business is valid and active.

Other types of businesses can also register and enjoy the benefits, such as:

• Government schemes
• Easy loan approvals
• Business Recognition
• Participation in trade fairs and tenders

Getting Udyog Aadhar is a smart step for any small business looking to grow and get noticed.

Uses and Benefits of Udyog Aadhar

Here is a list of benefits that a business gets after registering with Udyog Aadhar:

• Protection against delayed payments
• Collateral-free business loans
• Fast resolution of disputes
• Exemption from octroi charges
• Waiver of stamp duty and registration fees
• Eligibility for Industrial Promotion Subsidy (IPS)
• Subsidy on barcode registration
• Excise duty exemption
• NSIC performance and credit rating subsidy
• Lower interest rates on business loans
• Interest exemption on overdrafts
• Concession on electricity bills
• Various exemptions under Direct Tax laws
• Credit guarantee support through CGTMSE
• Relaxation in government tender applications
• Preference in international trade fairs
• Subsidy for technology upgrades under the CLSS scheme
• Increase in the eligible loan limit
• Higher credit guarantee coverage (from 75% to 80%)
• Reimbursement for ISO certification fees
• Subsidy on patent registration
• Preference in government tender allotments
• Easier business registration
• Faster approval for licenses and permits

These benefits make Udyog Aadhar registration a valuable step for small and medium businesses looking to grow and succeed.

Reservation of the items for assembling by MSME

As mentioned earlier, there are many benefits of registering your business with Udyog Aadhar. In addition to those, whenever the government launches a new scheme, registered businesses automatically become eligible for those benefits too.

Registering a business under Udyog Aadhar is very easy. The steps are simple, and you don’t need to get any documents signed by a professional.

Another big benefit is that the government reserves certain items to be manufactured only by MSMEs. This helps small businesses grow without facing tough competition from big companies.

Why Udyog Aadhar is Needed:

Registering for Udyog Aadhar gives small businesses several important benefits, such as:

1. Easy approval of bank loans at lower interest rates
2. Access to the Credit Guarantee Scheme, which helps in getting loans without collateral
3. Exemption from excise duty, which saves money on manufacturing
4. Tax benefits under direct tax laws
5. Protection against delayed payments, if a buyer delays payment, the business is entitled to 3 times the RBI interest rate as compensation

MSMEs (Micro, Small, and Medium Enterprises) can get many kinds of support from State Governments, such as:

• Extra credit facilities (more options for loans)
• Help with business expansion and growth
• Support in advertising and marketing, both in India and abroad
• Assistance to set up businesses in underdeveloped areas
• Technical advice and financial help to improve machinery and upgrade technology

Apart from this, the government regularly updates a list of products that must be purchased only from MSMEs. This helps small businesses get more opportunities and grow faster.

Trademark Discount for Small Businesses

As per the Trademark Rules 2017, special benefits are given to micro and small businesses.

According to Rule A, MSMEs only have to pay half the fee for filing a trademark application compared to other types of businesses. This makes it easier and more affordable for small businesses to protect their brand.

Who Should Get Udyog Aadhar?

Let’s make it simple almost any type of business can apply for Udyog Aadhar. This includes:

• Sole Proprietorship
• Partnership Firm
• One Person Company
• Private Limited Company
• Limited Liability Partnership (LLP)
• Hindu Undivided Family (HUF)
• Co-operative Societies
• Any group of people doing business together

However, to get Udyog Aadhar (now known as Udyam Registration), your business must meet certain rules to be classified as a Micro, Small, or Medium Enterprise (MSME).

So, if you own a business, first check if your business fits the MSME criteria under the MSMED Act, 2006. If it does, you're eligible to register and enjoy all the benefits that come with it.

Documents Needed for Udyog Aadhar Registration

To complete your Udyog Aadhar (now Udyam) registration, you’ll need the following details and documents:

1. Name and Aadhar number of the business owner (as per Aadhar card)
2. Caste certificate (only if you belong to SC, ST, or OBC category)
3. Name of your business or company
4. Any previous registration details (if available)
5. Type of business (e.g., sole proprietorship, partnership, etc.)
6. Business address and bank details
7. NIC Code (National Industrial Classification Code for your business activity)
8. Number of employees working in your business
9. Main activities of your business (like manufacturing or services)
10. Email ID and mobile number of the business owner
11. PAN number and total investment made in the business

Make sure all information is correct to avoid delays in your registration.

5 Main Features of Udyog Aadhar

1. Easy Online Registration - You can register online with just one click. No need to visit any office.
2. Self-Declaration - You can fill the form yourself using basic business details.
3. Multiple Registrations Allowed - You can register more than one business using the same Aadhar number.
4. Basic Details Needed - You only need your Aadhar number, business name, address, and bank details to apply.

Udyog Aadhar (now Udyam Registration) is a smart and hassle-free way for small and medium businesses to get official recognition and enjoy government benefits. From easy loan approvals to tax exemptions and special support schemes the advantages are many.

The registration process is simple and can be done online in just a few steps. If you're a business owner, don’t miss out on these benefits. Register or update your Udyog Aadhar today and take your business to the next level.

Still have questions or need help? Fill out the enquiry form, and one of our experts will contact you by email.

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