India's growing small and medium business (SME) sector forms the mainstay of its economy. To help further grow the number of small, micro and medium-sized businesses (MSMEs), the Government of India introduced Udyog Aadhar Certificate registration -- a simple yet powerful initiative designed to provide legal recognition and the benefits of small business owners.
In this post, we'll walk you through the basics of Udyog Aadhar Registration for certificates is, why it's vital, and how you can get it step-bystep. No matter if you're a start-up founder or seasoned business owner, getting this certification will open up a host of opportunities for your business.
What Is Udyog Aadhar Certificate Registration?
The Udyog Aadhar Certificateis a government-backed initiative under the Ministry of MSME. The initiative was introduced in 2015, and provided a simple way to allow micro and small businesses to be recognized as a legitimate business under the MSME category. The unique identification code is also referred to as the Udyog Aadhar Number (UAN) allows businesses to avail advantages including tax credits, subsidy payments, easier loan approvals, as well as other benefits.
Though it's been updated to the latest Udyam Registry, the term " Udyog Aadhar Certificate registration" continues to be widely used and searched for by business owners looking to sign up under MSME standards.
Who Should Apply for Udyog Aadhar Certificate Registration?
Every business that falls within the category of micro, medium, or small can apply. Here's a quick breakdown:
- Micro enterprises: Plant or machinery does not exceed Rs1 crore. turnover cannot exceed Rs5 crore.
- Small Enterprises: Investment does not exceed Rs10 crore while turnover is not more than the amount of Rs50 crore.
- Medium-sized Enterprises Investment does not exceed Rs50 crore. Turnover is not more than Rs250 crore.
If you're in manufacturing, providing services or trading, as long as you satisfy the requirements, Udyog Aadhar Certificate application could be an important step in the right direction.
Benefits of Udyog Aadhar Certificate Registration
Registering your business comes with many benefits:
- access to subsidies from the government: Various subsidies are given for power supply or patent registration as well as ISO certification.
- Simpler Lending Approvals: MSMEs with a valid Udyog Aadhar Number usually get higher-speed and less-interest loans from banks and financial institutions.
- Tax Benefits Benefit from exemptions in the direct tax law and various other tax schemes run by the government.
- Participation in the Government Tenders: Gives eligibility for the government to use preference for procurement and tenders.
- Protection against Delayed Payouts Legal support in the MSME Act for resolution of delayed payments from customers.
How to Apply for Udyog Aadhar Certificate Registration
This step-by-step tutorial will help you with the process of registration:
Step 1: Visit the Official MSME Website
Go to your Udyam Register portal and you will find it replaced the older Udyog Aadhar portal. But don't fret -- it still caters to businesses searching seeking Udyog Aadhar certificate registration.
Step 2: Aadhar Number
Use the Aadhar number of the company owner or authorized signatory. It's required to prove identity.
Step 3: Fill in Business Details
Include the name of the business, type of organization along with the address and contact information.
Step 4: Classification and NIC Code
Choose the correct NIC Code based on your commercial activity. Additionally, you need to provide investment and turnover details in order to be classified under the micro, small or medium categories.
Step 5: Submit and Receive UAN
When you have completed the application, you'll receive a unique Udyam Registration Number. This is the latest version of Udyog Aadhar Certificate registration.
Key Differences Between Udyog Aadhar and Udyam Registration
Though people still search in search of Udyog Aadhar certificate to register It is important to be aware of the latest process:
Feature
Udyog Aadhar
Udyam Registration
Basis of Registration
Self-declaration
PAN as well as GSTIN linked
Identification
12-digit UAN
Udyam Registration Number
Validity
No expiry
Lifetime
Documents Required
Minimal
PAN, GSTIN, Aadhaar
If you've registered previously under Udyog Aadhar If you've previously registered under Udyog Aadhar, you're advised to migrate to Udyam Registration in order to keep receiving benefits.
Final Thoughts
It's a good idea to know that the Udyog Aadhar Certificate registration is much more than documents -- it's also a gateway to legitimacy, funding from the government and business opportunities for entrepreneurs within India. Although Udyog Aadhar has changed to Udyam however, the main benefits remain similar.
