SMEs or Small and Medium Enterprises are one of the key drivers behind the growth of India’s manufacturing prowess, contributing 24.63% to the service sector and 6.11% to the manufacturing sector.
The number of SMEs is estimated to be around 42.50 Million till date (both registered and unregistered), which offers employment to around 40% (approximately 106 Million) of the youth of India.
Udyog Aadhaar was introduced by the Government of India in an attempt to boost the SME sector. Udyog Aadhaar is an identification system that is used essentially for business. It is an initiative of the Government of India to help in the growth of these sectors.
Discussed below are the eligibility, registration process and importance of Udyog Aadhaar and how it helps these small businesses to grow.
Benefits of Udyog Aadhaar for small businesses
Given below are some of the Udyog Aadhaar benefits that SMEs can enjoy –
- You can enjoy the benefits of MSME loans under Government schemes to raise the finance needed for boosting working capital and inventory.
- Being registered under Udyog Aadhaar, you can apply for micro-business loans from several financial companies with ease. You can even apply for credits from NBFCs or Non-Banking Financial Company. Bajaj Finserv is one such NBFC that offers Business Loan to the eligible applicants. One can enjoy several facilities such as substantial loan amount of up to Rs. 30 Lakh, flexible loan tenor, collateral-free credits, online account access, no hidden charges, the quick disbursal and other lucrative benefits.
Udyog Aadhaar registration process
To register online, you are required to –
- Visit the official portal of Udyog Aadhaar
- Share your Aadhaar number and your name.
- Click on ‘Validate and Generate OTP’.
- Enter the OTP you receive to be redirected to a page where you will find the application form.
- Fill the Udyog Aadhaar application form by sharing specific information such as the name of the business, contact number, email ID, details of your business, type or nature of the business, account details, employment information, and other necessary details.
- Submit your application form and upload the required documents such as residential documents, account details, Aadhaar card, etc.
- Click on ‘Submit’ to receive an OTP.
- Share the OTP and click on ‘Submit’ to complete the application process.
After your application is submitted, a registration number will be generated and sent to your registered email ID or contact number. You will also receive your Udyog Aadhaar Number or UAN on the registered contacts.
You can also get your UAN after submitting your form for Udyog Aadhaar Memorandum. Udyog Aadhaar Memorandum is one of the essential documents required for GST registration.
In case you wonder ‘what is Udyog Aadhaar Memorandum’, it is an application form via which SMEs and MSMEs can self-certify their account details, their existence of business, their ownership details, etc.
To obtain your Udyog Aadhaar Memorandum, you are not required to pay any application fee. After you submit the required form to obtain Udyog Aadhaar Memorandum your Udyog Aadhaar Acknowledgement will be sent to the registered contact details along with your UAN or Udyog Aadhaar Number.
After you have secured your documents, you can register for GST online by sharing details like your Aadhaar number, nature of business and type, date of commencement, contact details, etc.
Once your details are verified, you will receive your GSTIN or GST Identification Number within 3 to 4 working days.