the article discusses the meaning and significance of the Udyog Aadhar scheme implemented by the government on Micro, Small and Medium-sized enterprises all over the country.
Overview
Small and medium-sized businesses or enterprises (SMEs) contribute to and check major urban and rural development boxes. It is almost impossible to overlook their massive handouts of the total value of goods produced and services provided in a country every year. Every year the government adjusts and plans its schemes to bolster SMEs’ management and strengthen their grounds with governmental aid and perks. It allows access to the growth of the business or multiple businesses an individual or party is willing to uptake.
One of the major SME sector schemes that manage the development and manufacturing output is the Udyog Aadhar scheme, which is an identification just like Aadhar but exclusively for business, for more visibility, transparency and accessibility of both government and business to each other.
Udyog Aadhar- Purpose and Mechanism of Working
The main idea behind Udyog Aadhar is to support and prefer businesses registered with the government. It is a way of making businesses streamlined and hence more organised, this way the availing and choosing of the registered businesses for goods and service transaction purposes becomes more accessible and more employment can be provided through smaller and medium-sized enterprises by
- encouraging their business (one or multiple) growths with allowances and funding perks
- offering subsidy rates of interest on borrowed money and
- make loans less intimidating by exempting taxes up to 20 lakh rupees.
How the Scheme Works
Since small and medium enterprises constitute about 95% of the country’s entire industrial houses, firms and establishments, it is only sensible to make a record of them instead of making inaccurate or gross estimates of produce. To facilitate governmental help in this sector by offering subsidy perks to MSMEs and SMEs, Udyog Aadhar registration: https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm was started. Each business to register under the Udyog Aadhar scheme,
- can be declared by the owner of the business,
- no supporting documents are needed.
- One doesn’t need to fay a pee to register and file the memorandum of UA and
- Finally, an acknowledgement of the process is received and
- along with it, the UAN or the Udyog Aadhar Number of the business.
The businesses are divided categorically into micro, small and medium-sized based on the amount of revenue it produces with the amount of funding made for it, that is, turnovers and investment made.
- Micro enterprises: ones that invest 1 crore rupees for a turnover of 5 crores
- Small enterprises: ones that invest up to 10 crore rupees for a turnover of 5 to 50 crores
- Medium enterprises: ones that invest up to 20 crores for a turnover of 50 to 100 crores
How to Register and Download the Memorandum/Certificate
The primary step to registering one’s business is the individual’s or entrepreneur’s Aadhar ID details. Registration for Udyog Aadhar is free. Here’s a set of instructions step-by-step to guide one through it:
- Go to the official website for Udyog Aadhar registration
- Sign in by filling in the details asked; the name of the entrepreneur should be the same as the one in the Aadhar ID
- Multiple businesses can be registered under the same Aadhar Number and ID name.
- There shall be an OTP generator, and an OTP will be received within minutes on the phone number one has registered with
- This verifies the entrepreneur’s Aadhar ID claim
- Next, the applicant should have to fill in the “Name of the Enterprise very carefully”, “Type of Organisation”, “National Industry Classification Code”, and “Major Activity”
- Recheck for errors and correct them
- Upon completion and revision, click on the ‘submit’ button at the end of the page
- It generates yet another OTP, finally allowing the applicant to submit the unique form.
- This process will charge no fees, and the Udyog Aadhar certificate produced hence can be printed.
Udyog Aadhar Memorandum
A Udyog Aadhar Memorandum can be issued through MSME Registration, where one can self-attest and certify for the business entity they run, their Aadhar card ID Details, bank details and other things asked and required in the form.
This will help generate a Udyog Aadhar Memorandum with a unique Udyog Aadhar Number (UAN). Multiple enterprises can be registered with and under the same Aadhar details. One needn’t submit any documents for the same but can be asked for some documentation as proof by the Centre or the State. It is advisable to keep the following handy while registering
- Name of Owner;
- Owner’s Aadhar card number and details;
- Address of business and owner;
- Category of business;
- Category of the applicant (General/ OBC/ ST/ SC/ other);
- Name of the business that needs to be registered;
- Key work/ services;
- Bank details;
- National Industrial Classification Code (NIC Code);
- Date of commencement of business;
- Number of employees;
- Details of the District Industry Centre (DIC) nearest to the enterprise.
Benefits of Udyog Aadhar Registration
The owner of the business should register his small or medium-sized business with the MSME to avail and reap the benefits of the Udyog Aadhar scheme that falls under it, mainly introduced to keep track of organised industrial firms and provide a strong foothold to small investors, employees, to furnish one or more businesses and not hinder their growth due to the lack of funds or resources which would, in turn, disrupt the gross produce and service of the country.
After registering their MSME,
- A business owner can avail of an easy loan;
- Loans can be issued in the name of business growth without giving a guarantee to the loan lending bank because the Central Government assures on behalf of the loanee;
- Loans with subsidised rates of interest are one of the enormous benefits over the years;
- Applicants may receive significant benefits and financial support and have increased chances to find their business more exposure at foreign expos and international trade fairs;
- The government too provides additional subsidies and preferences for buying services from registered businesses to non-registered ones;
- Since the registration process is not at all complicated and charges no fee, the applicant needs no additional help, and it sits fairly well with the working class for a hassle-free and uncomplicated gateway to profit, which helps their ideas and investments gain more ground and a plethora;
- Bank accounts are opened in the name of the business and are government-facilitated;
- Besides Udyog Aadhar, the government has actively introduced many other similarly beneficial schemes under and for the MSMEs in India;
- There’s heavy availability of micro business loans to which business owners can be entitled through simple registration processes, and awareness is of great importance in these cases.
Conclusion
The primary aim of such schemes built for small and medium-sized businesses is to allow these business-owning citizens to enjoy small capital and governmental aid. This benefits the government and hence the country by recruiting and employing the youth through these businesses that are encouraged through constantly revised schemes, well-adjusted to the market and beneficial bidirectionally. Non-gender specificity doesn’t subject women-owned MSMEs to gender biases and helps them flourish independently by availing low rates of interest and adequate funding for expanding their business ideas into models and into full-blown working and recruiting enterprises.
