Udyog Aadhar is a 12 digit unique number issued by the Ministry of Micro, Small and Medium Enterprises in India. Udyog Adhar registration with MSME is a free online process. This will help you to get many benefits available to MSMEs from the Government of India.
Apart from all, Udyog Adhar registration is an official recognition of government for sole proprietors and other unorganized businesses.
While applying for the Udyog Aadhar registration online, you need to verify and confirm that you are applying through the concerned ministry’s webpage.
You may know that applying and getting a Udyog Aadhar is not compulsory. If you are a business person and have Udyog Adhar, then you may be eligible for government schemes like marketing promotion, various subsidies. So it is an essential requirement for small and medium organizations.
The minimum requirement to apply Udyog Aadhar is the Adhar number of the entrepreneur and he or she should hold an account with a bank having an IFSC code.
Once we start the operation of the business, he is technically ready to apply for Udyog Aadhar registration.
In this article, we try to give you the important benefits and the free online process to get the udyog aadhar registration.
Table of Contents
Core Benefits of MSME or Udyog Aadhar Registration
Government of India offers numerous schemes for the promotions and development of the Micro, Small and Medium businesses. “Make in India” and “Made in India” movements are the essential part of the development of small and medium enterprises in India. We can discuss some of the benefits available to udyog adhar holders and MSME registered entrepreneurs.
1. You will be eligible for a collateral-free loan from banks and NBFCs
After your Udyog Aadhar registration, you will be eligible to apply for unsecured loans from banks, as part of the Government of India’s initiative to support the MSME sector.
You can also apply for Credit Guarantee Schemes available for MSME. The maximum limit for these kinds of loans varies depending on the banks. You may get a repayment term up to 15 years.
2. You will be protected in case of delay in repayment from debtors
If you supply any product or services on debt, the debtor must settle the dues within 15 days of the receipt of the product or service.
In case there is an agreement between the parties, the debtor needs to settle the amount within the agreed period. The maximum payment date in any case, to the MSME, can not exceed forty-five days from the day of acceptance of goods or services.
By this provision, registered entrepreneurs with Udyog Adhar can get protected from losing the proceeds of their goods or services.
3. You can get other licenses related to your business quickly
As an entrepreneur, you required to get several licenses and permission from the government to run the business. If you have the Udyog Aadhar registration and MSME registration, you can obtain all other licenses related to your business easily
4. You will get support from the Ministry for participating in international events
“Under the International Cooperation Scheme, financial assistance is provided on reimbursement basis to the State/Central Government organizations, industries/enterprises Associations and registered societies/trusts and organizations associated with MSME for deputation of MSME business delegation to other countries for exploring new areas of MSMEs, participation by Indian MSMEs in international exhibitions, trade fairs, buyer seller meet and for holding international conference and seminars which are in the interest of MSME sectors. Eligible beneficiary organizations can apply to the Ministry directly to avail the assistance under IC Scheme as per Scheme Guidelines.”
For more details , you can visit here
5. You may get exemption from tax
As you are registered with MSME, you may be eligible for direct and indirect tax exemption from the Central or state government in the initial years of starting your business.
6. Financial Assistance in the payment for using Bar Coding.
As per Ministry of MSM
“ In order to enhance the marketing competitiveness of MSEs in domestic as well as international market, Office of Development Commissioner (MSME), Ministry of MSME, provides the financial assistance for reimbursement of 75% of one-time registration fee (Under SSI-MDA Scheme) w.e.f. 1st January,2002 and 75% of annual recurring fee for first three years (Under NMCP Scheme) w.e.f. 1st June,2007 paid by MSEs to GS1 India for using of Bar Coding. The work of reimbursement has been decentralised and transferred to field offices i.e. MSME-DIs w.e.f. 1st April,2009 with a view to ensure speedy & timely and extensive implementation of the scheme”
7. You can get a subsidy upto 75 % the fee rating agencies under the Performance and Credit Rating Scheme.
The Performance and Crediting Rating scheme was introduced by the Government of India in consultation with industry associations, Indian Banks Association, and with rating agencies. The main purpose of this scheme was to create information on the business units among the Micro and small entrepreneurs. It assesses the strength and weakness of the units and helps them to increase their vitality and reduce vulnerability.
These business units can select their rating agencies at their convenience.
As per https://msme.gov.in/,
” The existing provision under this scheme envisaged that the fee payable by MSE to the rating agencies is subsidized upto 75% of the fee, which is categorized into three slabs based on the turnover of the units “
8. You may be eligible for Industrial Promotion Subsidy
As you have MSME registration, you will be eligible for subsidies on various industrial promotion program
9. Counter Guarantee from Government
As per Development Commissioner, Ministry of MSME
“The Scheme has been operationalised with effect from 1st January, 2001. Subsequently, the Government decided to increase the eligibility limit of loans to be guaranteed from Rs. 10 lakhs to Rs. 25 lakhs. Necessary modifications have been carried out in the indenture of the Trust to enable CGTSI to guarantee loans up to Rs. 25 lakhs and to provide for counter guarantees to other institutions.”
10. You can enjoy low-interest rate
Banks offer a reduction in the rate of interest to MSMEs for the borrowings. In some cases, it may depend on your Credit Rating.
A leading bank in India offers interest rate starting from Repo Linked Lending Rate + 1.05 % onward for MSME business
11. Credit Linked Capital Subsidy Scheme for Technology Upgradation
Micro and Small Enterprises (MSEs) having a valid UAM number can enjoy the benefit of this scheme. As per this scheme, MSME can get an upfront capital subsidy of 15 percentage on the institutional lending of up to Rs 1 crores. This scheme used for technology up-gradation in micro-small enterprises.
The CLCSS scheme would be crucial in raising MSME contribution to the gross domestic product from the current 29 per cent to 50 per cent.
12. Concession on Electricity Bill
If you intend to receive a concession on your electricity bill, you need to apply along with the MSME registration certificate
13. You can benefit from ISO Certification Reimbursement Scheme
This scheme runs by the Development Commissioner of Micro, Small and Medium enterprises. Under the scheme, you can get the reimbursement on the costs incurred for getting the ISO certificate. You can occupy the benefit of this scheme only once. This reimbursement is limited up to 75 per cent of the cost spent on obtaining the ISO certificate, subject to a maximum of INR 75000.
14. Benefit as pe Public Procurement Policy for Micro and Small Enterprises (MSEs) Order ,2018
The objective of this policy is the promotion and the development of Micro and Small Enterprises. As per this policy, every central ministry or department or public Sector undertakings shall set an annual target of 25 per cent of procurement from the MSE sector. As you hold an MSME registration and Udyog Adhar, you can enjoy the benefits of this policy
15. Price Preference to MSMEs
The Director-General of Supplies and Disposals, the Central Purchasing Organisation of Government of India provides several facilities to small scale industries under its Government Stores Purchase Programmes.
These are some products reserved for exclusive purchase from small scale sectors and price preference up to 15percentage in case of selected items.
16. Patent Cost Reimbursement
As an MSME registered entrepreneur, you can apply in a prescribed format for 50 per cent of the patent cost reimbursement as financial support to the technology start-up unit for international patent filing.
This reimbursement is limited up to INR 15 lakhs.
These are some of the benefits available to registered MSMEs with Udyog Adhar. If you want to know more details about the MSME schemes, it can download from the below link.
How to apply for Udyog Adhar
There are two modes to apply for Udyog Aadhar registration,
The most common and easy way to apply for Udyog Aadhaar is the online method.
You can use your Adhar card and bank account for this purpose. It may take 15 minutes to complete the process to get the Udyog Adhar registration certificate.
There is an option to apply offline also. In case the entrepreneur is not enrolled for AAdhhaar himself, in this case, the Aadhaar number is not available for online registration.
So these entrepreneurs can approach the Aadhaar enrolment centres first for enrolling the Adhaar card for them. They can apply the UAM offline by providing the below documents through the concerned DICs
- Adhar enrollment ID slip which receiving from Aadhaar enrolment centres or a copy of his Aadhaar enrollment request
- Any of the id document mentioned below
- Bank Passbook with photo
- Election ID card issued by the Election Commission of India
- Passport or Driving Licence or Pan card
- Government-issued employee photo id card
What is DIC
DIC stands for District Industries Centre. The Central government started these district level centres in 1978 for the promotion of micro, small, medium enterprises. Each DICs are headed by the General Managers of the centres.
Udyog Aadhar Registration Fee
Most of the small and medium entrepreneurs ask us about the fee for Udyog aadhar registration with MSME.
Before it was a paid service from the part of the government but now Government is not charging any fee for Udyog aadhar registration. So Udyog aadhar registration fee is nil if you apply through “https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx“
Suppose you approach any MSME consultants or business advisors for doing the registration, they may charge you their professional fee but it not as Udyog aadhar fee.
If you spend a 10-15 minute through their site, it is easy and free to get your Udyog aadhar card and MSME registration.
We can see the guide on how to apply for udyog aadhar registration online
Udyog Aadhar Registration Online Free
Visit the below button to start Udyog Aadhar Registration online.
First Enter your aadhar number
Second You need to enter your exact name as per the aadhar card.
If the name is not matched with the aadhar card, you will not be able to apply for udyog aadhar registration.
Once you enter these data properly, an OTP will be sent to your mobile number linked to the aadhar card. You require to enter the OTP code to the space provided for it.
Points 3 to 5, you can fill your details
Points 6 to 12, asking you to fil about your business like the name of the enterprise, type of organization, PAN number, location of your plant, address, Date on which the business started and any previous registration, if yes.
Type of organization means the type of legal entity of the enterprises. It may be proprietary, HUF, partnership, co-operatives, private limited companies, limited companies etc.
Point 13. Asking you to fill the bank details including the IFSC code
Point 14. You need to select the major activity of the business. If you have a business with manufacturing and service, but check which is your major business activity and select the column appropriately
Point 15 . Here you want to find the code for your business as per the National Industry Classification Code ( NIC Code).
Once again you require to select your major activity whether it is Manufacturing or Service
Then you have to explain the nature of business through the 3 codes like NIC 2 digit code, NIC 4 digit code, NIC 5 digit code.
To do so, click the concerned row, it will open a drop-down list of categories and codes, select the most appropriate one. If you did not find the most appropriate category to describe your business, then select others
Then go to NIC 4 visit code. There also you can find many categories related to your activity area, select the 4 visit NIC code
Then go to NIC 5 digit code and select the appropriate category code for your business.
If you find any difficulties to find the NIC codes, you can search it after downloading the “National Industrial Classification”
Then click “add activities”
If your business is doing more than once activities, you can add more activities as per the same process.
Point 16. – For these points, you need to provide the number of employees you pays as on the date of registration. It may increase or decrease in future.
Point 17. – Here you required to enter the amount of investment in the plant and machinery to run the business. The amount will represent in lakhs. If the amount of investment is 10 lakh, you need to mention only 10 in the space provided for it.
Point 18. Select your District Industries Centre (DIC)
Check the declaration and submit.
Once you confirm the entries are correct, you will get another OTP in your adhar linked mobile number. Enter the OTP and verification code in the space provided for it.
Then the last step, click “Final Submit”.
The next set will show you your udyog adhar. Click the “Print” button. You can get the document printed
Below the print option, you can see another like “ Click here for Udyog adhar registration certificate”.
Click here, you can see a new udyog adhar registration certificate.
So these two documents need to maintain in a file
This is the online process to get your udyog adhar registration free.
As per budget 2019, for the MSME sector, Rs 350 crore has been allocated for FY 2019-20 under the Interest Subvention Scheme, for 2% interest subvention for all GST registered MSMEs, on fresh or incremental loans.
The Finance Minister said that the Government will create a payment platform for MSMEs to enable filing of bills and payment. This will help to eliminate delays in payment and give a boost to investment in MSMEs.To get these benefits for micro, small and medium enterprises is to register for udyog adhar.
Hope you read and understand this article . So please apply for udyog aadhaar immediately if you have a small or medium business. It is completely free. This article for an educational purpose only. If you have any technical question please write in the comment section or please contact your concerned District Industries Centers (DICs) in your State. They will also help you.Please share this information to your friends and like minded people also.
All the information provided in this article is for educational and reference purpose only. As the tax-related matters amending time to time, the readers must verify the facts and laws with concerned departments or qualified professionals before acting based on the above information. The authors and www.finablow.com expressly disclaims any liability for any action taken based on the information provided in the article.Disclaimer