What is Udyog Aadhaar?
In India, every person has a unique ID in the form of an Aadhaar Card. In the same way, every Udyog, i.e., trade in India needs to have a unique ID. Thus, the Ministry of Micro, Small and Medium Enterprises (MSME) gives small and medium-sized firms an Udyog Aadhaar. It is also known as Aadhaar for firms. A 12-digit government ID number to register as MSME. It is a great way for new businesses to get an identity and trade in the Indian market. an Udyog Aadhaar aids small firms to get easy loans at a good interest rate by giving the least collateral.
Not all firms can get an Udyog Aadhaar. Only those who fall under the MSME category will be eligible to get an Udyog Aadhar. The MSMEs are divided into two classes as per the laws of the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006:
- Manufacturing firms are those that produce or make goods for any of the industries listed in the first schedule of the Industries (Development and Regulation) Act of 1951 or that use plant and machinery to add value to a final product so that it has a unique name, work, or use.
- Service firms are those that offer or supply services and are classified as per their equipment investment.
|Nature of Firm
|Investment in plant & machinery
|Not more than 25 lakh rupees
|Not more than 10 lakh rupees
|More than 25 lakh rupees but does not exceed 5 crore rupees
|More than 10 lakh rupees but does not exceed 2 crore rupees
|More than 5 crore rupees but does not exceed 10 crore rupees
|More than 2 crore rupees but does not exceed 5 crore rupees
Udyog Aadhaar Filing
The MSME filing process is also known as Udyog Aadhaar Registration. But this process has now been replaced by the Udyam filing. This is an update to the previous version. This process needs the least documents and is very quick. If you want to register your firm, all you need to have is your Aadhaaar details.
What is Udyam Filing?
MSME will now be known as the Udyam Aadhaar after the government of India made a new MSME filing scheme on July 1, 2020. This is also known as the Udyam filing. The Indian government has taken many steps to ease trade and aid the Atmanirbhar Bharat Scheme.
At the moment, all MSMEs must get Udyam filing. Not many documents are needed. There is no need to upload any documents. Only the Aadhaar and PAN card data are needed for Udyam filing.
The main documents needed to get an Udyog Aadhar along with the PAN card and Aadhaar card are:
- Name of the owner.
- Name of the firm.
- Address of the firm.
- Category in which the firm is applying.
- The type in which the firm carries out its business.
- Bank account data.
- NIC code.
- Employees’ data.
- DIC data.
- Date of starting of the business.
The process to register a firm with Udyog Aadhaar is as follows:
- Visit https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx
- On this web page, enter the Aadhar data of the owner of the firm.
- The owner will get an OTP on their phone no.
- After entering the phone number, they will get a link to fill out the Udyog Aadhaar form.
- After filling out the form, they will get an Udyog Aadhaar Certificate within 15 to 20 days by email. They can even get the certificate from the official website of Udyog Aadhaar after the processing time has passed.
Those MSMEs which had registered under the older version of the Udyog Aadhaar filing, called Udyog Aadhar Memorandum (UAM), can now easily switch to the Udyam filing Portal or file for a Udyam filing afresh. It is a very quick and time-saving process. The best thing is it is done free of cost.
Why is Udyog Aadhaar Vital for Small Businesses?
There are many perks for firms having an Udyog Aadhaar. Some of them are:
- The trades having an Udyog Aadhaar will be given financial aid so they can exhibit their goods at the international level.
- These firms can apply for MSME loans at a low rate of interest. They can also apply for a no-collateral loan.
- Also, they can apply for government subsidies in many schemes.
- The filing would make it easier to open current bank accounts in the firm’s name without any issues.
- Also, it would enable firms to apply for small government loans and other such schemes.
- The firm owner can easily waive the stamp duty and filing fees.
- The firm can also get perks under direct tax laws.
- The owner can get a subsidy on barcode filing.
- Those firms that submit an application to the electrical department with their filing certificate can even get a discount on their electricity bills.
- The firms with this filing will be given an edge over the others when applying for government tenders. When applying for government tenders, these registered MSMEs will get special perks.
- They can even apply for an IPS subsidy.
- These firms also get protection against delayed payments by buyers.
The Bottom Line
Thus, MSMEs should get the full benefit of the Udyog Aadhaar scheme, which is made by the government of India’s ministry for MSMEs. The Udyog Aadhar filing process is now just called the Udyam registration. Thus, both of them should not be confused with each other. Also, after the free Udyog Aadhar filing, various perks offered to the firms make it a very useful scheme for MSMEs.
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