The MSME sector forms the backbone of India’s manufacturing prowess. With over 43 million units, this sector alone accounts for 46% of the country’s total manufacturing output.
Unfortunately, despite the extensive presence of the SME and MSME industries across India, many of them still suffer from an acute absence of funding throughout the year. To facilitate the efforts of the MSME sector, and bolster their financing standing, the Government of India has introduced several schemes and streamlined the process of application by implementing systems like registering via UAM to avail Udyog Aadhaar benefits.
The idea behind Udyog Aadhaar is to simplify the procedure of registering a business under the Ministry of MSME (Micro Small Medium Enterprise). Before its inception, the procedural format for MSME registration was a time-consuming and hectic affair.
Before the rollout of the UAM (Udyog Aadhaar System), there was the former system of Entrepreneur Memorandum (EM-I/II). Entrepreneurs were required to rely on the national portal or state portals for carrying out MSME registration.
Many also relied on manual paperwork, which increased the hassle of the entire process. With the introduction of Udyog Aadhaar, the procedural format has become quick and efficient.
But, before delving into the advantages of registering under UAM, take a look at what it is –
What is Udyog Aadhaar?
It is a Central Government controlled registration system that certifies small and micro-scale enterprises by providing them with a unique code and recognition certificate.
The principal motive behind this flagship program is to pave way for the Government of India to offer maximum benefits to MSMEs and SMEs in India and help them get small business finance with ease.
The owner or proprietor of this certificate will be provided with a 12-digit Aadhaar number irrespective of whether the entity is an LLP, PLC or sole proprietor. The eligibility is that the enterprise comes under the criteria defined in the MSMED Act of 2006.
Udyog Aadhaar benefits
The benefits of registering your business for Udyog Aadhaar are as follows:
- Access to advances without pledging any collateral and at a subsidised rate of interest.
- Financial support for participating in foreign business expos.
- Avail the benefits of MSME loans.
- Easy access to government subsidies for businesses.
- Enjoy excise exemptions.
- Concession in electricity bills.
- Exemptions when your business applies for government tenders.
- Reduced fees when you file trademarks and patents.
All of these benefits are crucial for an enterprise, as it grants you access to immediate capital and several benefits. In addition to this, you can also couple the Udyog Aadhaar benefits with a Business Loan from lenders like Bajaj Finserv.
Whether you need funds to improve your business infrastructure, expand organisational reach or upgrade machinery – this credit facility offers a lucrative, collateral-free sanction.
How to register for Udyog Aadhar?
Follow the step-by-step guide to register your business under Udyog Aadhaar:
Step 1: Visit the official portal of UAM.
Step 2: Enter the Aadhaar card details, name of the owner and registered mobile number.
Step 3: Enter the OTP to complete the verification process.
Step 4: After successful verification, you will be redirected to an application page. Fill all the mandatory details appropriately, such as ‘Name of Enterprise’, ‘Type of Organisation’.
Step 5: After rechecking the data, hit ‘Submit’.
Step 6: You will be prompted to validate another OTP.
Step 7: Enter the OTP and click on ‘Final Submit’ to complete the Udyog Aadhaar application procedure.
It is important to note that there are no fees involved in this process. You can enjoy Udyog Aadhaar benefits upon successful registration.
Now that you are aware of the advantages of UAM, you can get easy financing. It is time to follow the tips to scale your business to new heights, generate more revenue and enhance profitability.