Procedures on How to Register for Udyog Aadhaar Application
The Medium and small scale industry in India is the 2nd largest in the world, after China. Currently, there are approximately 42.5 million active MSMEs in the country. Almost 7.4 million MSMEs are currently registered under Udyog Aadhaar. Until July 2018, the number was 4.8 million.
It is also the largest employment sector after agriculture in India. Given its significance in driving the economic growth in India, the government is implementing improved facilities and schemes for MSMEs.
The Udyog Aadhaar one of them set to provide a host of benefits to almost all the MSMEs in India, even the sole proprietors who earlier had no business validation from the government. The Udyog Aadhaar registration is simple, and almost everyone with an Aadhaar card can register their companies to avail the 12-digit number.
The step-by-step registration process for Udyog Aadhaar number
The Udyog Aadhaar registration process takes place both online and offline. To apply online, visit the official Udyog Aadhaar site, and then follow the below-mentioned steps:
- Enter your Aadhaar number and name.
- Click “Validate and Generate OTP.”
- Enter the OTP received on your Aadhaar registered mobile number.
- Fill out the Udyog Aadhaar form and click on submit.
- Enter the OTP, which you will receive in your registered Aadhaar number.
- Click on submit.
After the completion of the process, the Udyog Aadhar Number (UAN) will be mailed to your registered email ID.
An applicant can register multiple MSMEs under his/her name. In case of partnership businesses, only one partner can opt for MSME registration and he has to enter his/her Aadhaar number. If it is a company, the authorised signatory’s Aadhaar number is required. The registration process incurs no charge.
For Udyog Aadhaar free registration, you can also apply offline. These are the steps you need to follow to apply offline:
- Visit your nearest MSME-DI or District Industry Centre (DIC).
- Submit the necessary documents to the respective executive: Aadhaar card and valid address proof.
- Fill out the form and submit it.
The Udyog Aadhaar Number will be sent to you upon generation via email. The Udyog Aadhaar certificate can also be printed for convenience.
Note that you may not eligible for Udyog Aadhaar registration if you do not hold an Aadhaar number. In that case, you need to apply for it first and use your Aadhaar Enrolment ID or photocopy of the application made for Aadhaar.
Upon registration, you will be eligible for lower interest rates on MSME loans, an efficient financing solution for small businesses to properly execute operations.
Details and documents required for registration
- Aadhaar number of applicants.
- Name of the applicant as in Aadhaar card.
- Caste of the applicant.
- Name of the organisation being applied for and documents attesting the same
- Type of business – Sole proprietorship, Partnership, Limited Liability Partnership, Public Company, Private Company, Hindu Undivided Family, etc. Produce necessary documents attesting the type.
- Address of the firm/company and documents for the same.
- Date of commencement of business.
- Primary area of operation.
- A number of employees.
- Previous registration number (if any).
- Bank details – IFSC code and account number.
- PAN card for LLP, Company and Co-operative Society.
- NIC code, which can be found in the National Industrial Corporation handbook.
- Documents sharing the amount of investment in plant and machinery, and equipment.
- Details of nearest DIC.
MSMEs can enjoy a business loan of up to 30 Lakh once registered with Udyog Aadhaar number. Additionally, registered firms/companies also enjoy a host of other benefits, such as:
- Protection against late payments.
- OCTROI and excise duty benefits.
- Exemptions under direct tax laws.
- Exemption of 1% interest on OD.
- 15% subsidy under CLCSS scheme.
- Guarantee cover extended from 75% to 80%.
Also, firms/companies can enjoy the benefits of an MSME loan without keeping anything as collateral.
As the Udyog Aadhaar registration process is simple, every business person can register themselves. It will allow them to enjoy the existing benefits as well as benefits the ones which will be introduced by GOI in future.