Udyog Aadhar:

What Is Udyog Aadhar?

Essentially, Udyog Aadhar is the Aadhar for businesses. It is a 12-digit Unique Identification Number that is issued to the MSMEs by the Ministry of Micro, Small, Medium Enterprises. The Unique Identification Number facilitates the process of getting enterprises registered as an MSME. 

Note that each enterprise is entitled to one Udyog Aadhar Number. Once the business entities are registered with the Udyog Aadhaar, they will receive a certificate. This registration process is entirely free and can be completed online. 

Eligibility Criteria And Necessary Documents: 

To qualify for the Udyog Aadhar, businesses are required to meet stipulated eligibility criteria and submit a few documents –

• Eligibility Criteria:

This table below highlights the essential criteria that one must meet to register with Udyog Aadhar –

• Documents Required: 

Businesses need to submit these documents to qualify the eligibility criteria –

• Aadhaar Number
• PAN number
• Bank details
• Proof of social category like SC/ST/OBC certificate
• Address proof
• National Industrial Classification Code
• Email ID and contact details
• Details of investment made by the enterprise
• Details specifying the enterprises’ type

Udyog Aadhar Registration Process:

Business entities must keep their Aadhaar details handy to streamline the Udyog Aadhar registration process online with greater convenience. Typically, one can complete the registration process in a few simple steps. The following pointers highlight them –

Step 1 – Visit Udyog Aadhar’s official website.

Step 2 – Enter Aadhaar details like name and number in the ‘Name of Entrepreneur’ and ‘Aadhaar Number field’.

Step 3 – Click on the ‘Validate and Generate OTP’ box.

Step 4 – Enter the OTP sent on the registered mobile number.

Step 5 – Once verified, you will be redirected to the registration form.

Step 6 – Provide essential details and verify them.

Step 7 – Click on the ‘Submit’ button to generate another OTP.

Step 8 – The OTP will be sent to the registered mobile number.

Step 9 – Enter the OTP and proceed to click on the ‘Submit’ button.

The application process will then be complete. Like discussed, Udyog Aadhar registered businesses can avail several benefits. Companies should make it a point to find out about the benefits in advance, so that they can use them as and when required.

Benefits Of Udyog Aadhar:

The pointers below provide a fair idea about the benefits of Udyog Aadhar and also helps to understand how Udyog Aadhar works in favour of MSMEs. 

• It comes in handy while availing credit or opening a current account at a financial institution.
• Businesses with Udyog Aadhar are entitled to receive a low-interest rate.
• It helps to secure exemptions on direct taxes.
• Facilitates the process of availing license approval and other registration.
• Registered businesses are eligible to claim government subsidies.
• Helps to avail Octroi benefits as per the Package Scheme of Incentives, 1993.
• Up to 50% grant is made available for patent registration and trademark.
• Businesses can also avail discount on utility bills.

However, individuals are required to meet several stringent criteria to avail the cost-effective financing, mentioned above. Regardless, any business can avail funds against their unpaid invoices by opting for the invoice discounting services of KredX, and meet their working capital-oriented requirements smoothly.

Lastly, it can be said that the features and accompanying benefits of Udyog Aadhar make it mandatory for MSMEs to get registered. In turn, it proves useful for the growth and expansion of businesses.