On 13th May 2020, Smt. Nirmala Sitharaman, The Minister of Finance, Government of India issued a new Definition of Micro, Small and Medium Enterprises (MSME) in line with the international Standards. Earlier the criteria to define an MSME was only interms of Investments which was modified to include Turnover of the company too as part of MSME. Further on the criteria were different for Manufacturing and Services businesses which was merged into one Homogeneous solution. Hence now the MSMEs are defined as follows
However to be notified as MSME, the Ministry of MSME has launched a Registration process by name Udyog Aadhar which is a unique identification number built on the lines of UIDAI’s Aadhar Number that identifies the MSME business.
What is Udyog Aadhar?
Udyog Aadhar or Udyog Aadhar Memorandum Number or UAM Number is a 12 digit Unique Identification Number provided by the Ministry of MSME, Government of India for small and medium enterprises in India. It can be considered as the Aadhaar Number for Busineses
By haveing UAM number businesses can claim various benefits that includes Financial Benefits, Marketing Benefits, Operational / Organizational benefits and also Claim many Schemes and Subsidies from the government.
Who can apply for Udyog Aadhar?
Any one can Register to Udyog Aadhar irrespective of the type of business. It could be a Manufacturer, a Trader or even a Services businesses. The business could be either a proprietary ship company or a Private limited or any type. The business can be of any industry both Organized and Un-organized sector only guideline is as per the above diagram.
So You can own a Udyog Aadhar and register with MSME. By default most businesses are Micro businesses
Benefits of Udyog Aadhar
There are various benefits by having the MSME certificate and registering with the MSME. You are not only invited to their programmes, but you are also helped to ensure your business sails smoothly and you offer the best solutions
- Protection against delay in payment.
- Collateral Free loans from bank
- Waiver of Stamp duty and Registration fees
- Several Exemption under Direct Tax Laws
- Counter Guarantee from GoI through CGSTI
- Reduced rate of interest from banks
- Concession in Electricity Bills
- Reimbursement of payment made for obtaining ISO certification
- 1% exemption in interest on OD
- Increasing eligible loan limit for optimal reasons, from the amount of Rs. 25 lakh to Rs. 50 lakh
- Exclusive consideration for participating in international trade fair
- Exclusive consideration for participating in Local trade fairs
- Exemptions while applying for Government tenders
- Reservation of products for exclusive manufacturing by MSME/SSI
- 25% Reservations for MSMEs in Public Procurement Policy of PSUs, Central Governments and Ministries
- Access to Various Vendor Development Programmes
- Women and SC/ST Entrepreneurs get Special considerations in marketing their products & services
Organizational / Operational Benefits
- Fast resolution of disputes
- Octroi benefits
- Raising the extent of guarantee cover from 75 % to 80 %
- Easier registration and approvals to obtain Licenses
- Preference in allocation of Government tenders
- Zero Defect Zero Effect (ZED) Management and Certification
- Acquire raw materials, labour, permissions, etc.
- Access to Clusters for grouped usage of resources, services and machinery of specific industry
- Testing Centers for MSMEs
- Entrepreneurial and Managerial Development Trainings
- Entrepreneurship Skill Development Trainings
Government Subsidies and Schemes
- Barcode registration subsidy
- Subsidy on NSIC Performance and Credit ratings
- 15% subsidy under CLCSS scheme for technology upgradation
- Eligible for IPS subsidy
- Excise Exemption Scheme
- 50% subsidy for patent and trademark registrations
- Credit Guarantee Scheme for Micro and SmalI Enterprise (CGTMSE)
- Prime Minister Employment Generation Programm
- Fund for Regeneration of Traditional Industries
and many more…
How to Register for Udyog Aadhar?
Registration to Udyog Aadhar is very simple and easy. It is a One Registration process and anyone can register using a Mobile or a Laptop
Note: Udyog Aadhar Registaiton is FREE
To Register. Click on the Below link and the steps explained below
- Enter Your Aadhar Number and Name in Aadhar card and click Validate.
- Enter the OTP received in your mobile number
- After Validation, you will see additional 16 questions With descriptions
- Fill all Details and Click on Submit
- Your Udyog Aadhar Number will be generated and available for Download.
- Download and Print Your Udyog Aadhar Certificate
How does Udyog Aadar Registration help in #Impact10kMSMEs activity?
The aim of #Impact10kMSMEs to support at least 10,000 MSMEs, Startups and Small Businesses in India to ensure their business continuity. Our intention is to educate, provide necessary direction, support in restructuring, support process improvement or to help in finding new opportunities (both local and international).
We want to support businesses in the areas of Finance, Marketing and Organizations improvement and generate a transaction value of at least Rs. 1000 crores for over 1000 businesses.
So in that View having an Udyog Aadhar Number helps#Impact10kMSME activity to
- To identify MSME schemes that add value for your business
- To help you get Financial Subsidies, Grants or Loans with government support
- To get Subsidies for Events and Marketing activities that we organize to help you find your customers
- To arrange various activities and prepare your business to ensure your business moves smoothly and you deliver high-quality solutions, products and services
Note: Udyog Aadhar Number is Mandatory to take benefits from #Impact10kMSME activityDisclaimer: We donot claim that the images used as part of the news published are always owned by us. From time to time, we use images sourced as part of news or any related images or representations. Kindly take a look at our image usage policy on how we select the image that are used as part of the news.