Aadhaar is a 12 digit number. The reason to launch this Aadhar is to provide maximum benefits to the small and medium scale industries, which are registered with MSME through the Aadhar number provided. Initially, this scheme was available in the state of Punjab only, but after some time this scheme was made available to all small Enterprises all over India.
Udyog Aadhar scheme is available to MSME's only, hence it is important to know what MSME stands for. MSME stands for Micro Small and Medium Enterprises. These are divided on the basis of investment made by them in manufacturing and service sector.
More on: Documents Required for MSME Registration
A large number of enterprises in India are not registered because the process involved in the registration process is sometimes cumbersome and hence the small and medium enterprises in India are unable to tap on the benefits which are apportioned to them by central and state government.
This is the reason why Udyog Adhaar originated, the purpose of the scheme is to ensure that the coverage of projects launched by the government is available to all the companies and they can avail the benefits under these schemes.
Related: MSME Subsidy Scheme
MSME play a crucial role in the current Indian economy as they generate a lot of employment opportunities and in the rural and backward area and hence state government and the central government has launched various initiatives to assure equal distribution of national income and wealth in India.
A sole proprietorship is the most common form of business, which is practised throughout India as it involves minimum compliance procedure and hence it is easier to run such type of business. Sole proprietors can also register themselves with the government as MSME with a more straightforward method through online method.
Udyog Aadhar registration process can be completed through an online process and is not possible to be achieved through offline method; the government has made this process free of cost.
Small and Medium Enterprises can register their companies with the government and avail following benefits.
Loans provided to the small enterprises are collateral free
Several exemptions on Direct Tax
Barcode registration subsidy
Disputes are resolved swiftly by the government
The government of India also provides exclusive considerations for participating in international trade
Concessions are provided in the electricity bills
Payment made for obtaining ISO certification is reimbursed by the government
The government provides 50% subsidy on any patent registration
The rate of interest from banks is reduced
Udyog Aadhaar enables all enterprises to file and register themselves so that simply by using Udyog Aadhar Number they can access all other services provided by the government.
Having Aadhaar Card is necessary to file registration online although if the entrepreneur who does not have Aadhaar they have an option to submit the physical copy of Udyog Adhaar memorandum to the general manager (GM) of the concerned district Centre.
Government Subsidies to MSME
Credit Guarantee Fund Trust Scheme
Credit Linked Capital Subsidy Scheme