Businesses are the bedrock of any economy. The truth is that any nation develops in line with the economic or business development within its boundaries.
Today, micro, small, and medium enterprises (MSMEs) are the driving factors behind the growth of the global economy, especially in developing countries. Small businesses have become an important participants in the process of building the Indian economy. Additionally, MSMEs are paving the path for rapid employment generation at a low capital cost.
There are 3.3 lakh small businesses(0.5% of all MSMEs) and 0.05 lakh qualify as medium businesses (0.01% of all MSMEs). The rural areas have 324.9 lakh businesses, whereas urban areas consist of 309 lakh businesses.
This is why India is giving more attention to MSMEs and the schemes thereon to promote this sector. Udyog Aadhaar is one such aspect that has been launched by the government.
What is Aadhaar Udyog?
Aadhaar is a 12-digit Unique Identification Number that the Indian Ministry (Micro, Small, and Medium Enterprises beginning in September 2015) provides. Aadhaar Udyog is the Aadhaar number for businesses. According to the data available till July 2018, over 4.8 million MSMEs in India have been registered under Udyog Aadhaar. That means only 7.6 percent (approximately) are reaping the benefits of the scheme.
The numbers are enough to demonstrate the importance of Aadhaar for business. According to experts, the number is expected to double or triple by the end of the decade. This comes as no surprise to the business community that sees persistent growth in the Indian economy thanks to the government policies and the ever-growing demand pushed by the growing population.
Udyog Aadhaar Memorandum
It is a comprehensive registration document that consists of a self-declaration form. The declaration provides details about the owner or the promoter of the business. This valuable piece of document verifies that the business in question has attained self-certification status in important respects.
These include the details of the bank account of the business. A given venture may have one or two bank accounts. The document lists all accounts located in different areas. Those banking details help the business owner to steer loans from the government to those accounts. At the same time, they provide the government with info regarding the operation of business activities carried out using those accounts.
The Udyog Aadhaar Memorandum (UAM) also includes details of the owner or promoter of the venture. Important information includes the name, address, family tree, educational background, and any criminal history. Government officials can easily reach out to the owner or promoter of the venture using the details mentioned in the document. This vital piece of information is also used by other businesses dealing with the venture.
Significance of Udyog Aadhaar – How it Can Help a Business?
Registering a business requires a bunch of papers – be it a small or medium-sized venture. Extensive paperwork also acts as a hurdle for a business when it comes to availing the benefits of various government programs. In this regard, the Udyog Aadhaar system minimizes the paperwork and streamlines the entire process of registration.
The operational procedure of the Aadhaar Udyog scheme is completely online and can be carried out on the web portal of the government website. Businesses can benefit from various skill development schemes that have been initiated by the central and state governments.
Udyog Aadhaar has also introduced interlinking cooperation between business enterprises and Government-run banks. So, there is no need to separately apply for upcoming subsidies or grants. The UAM has simplified the lives of businessmen by allowing them to fill out their business registration forms online.
The Process of Udyog Aadhaar Registration
The entire procedure is straightforward. However, before you proceed to the registration process, you must have certain documents ready. This will save you time and avoid hassles while registering your venture online.
Mandatory documents include a self-certification document verifying the existence of the business, financial information linked with the Government of India finance ministry that has to be entered into the application form, proof of business ownership, details of employment, and contingent information concerning the successful functioning of the venture have to be furnished.
Now that you know the documents, let us get to the quick registration process.
- Firstly, visit the official site of Aadhaar Udyog.
- Enter the Aadhaar number and fill in all the fields.
After filling in all the details successfully on the online portal, you will get a self-generated registration number. This number will also be sent to the email address of the business owner, and this will be the Udyog Aadhaar number.
- An option to re-verify the details will pop up on your screen. Verify the details again, and click the submit button finally.
Conclusion
Aadhaar Udyog comes as a big package filled with multiple perks for small and medium businesses that total 633 lakh enterprises. Any entrepreneur in this line can harvest the diverse benefits of the various schemes linked to Udyog Aadhaar.
Whether it is getting bank loans or enjoying a tax holiday, Aadhaar for business comes in handy for any such purpose. If you want to tap into the varied perks of this useful business ID, turn to Udyog Aadhaar registration now and reap the multiple advantages while ensuring smooth business activities.