A Udyog Aadhar is required for every sole proprietorship or small firm in the Micro, Small & Medium Enterprises (MSME) sector that aspires to gain legitimacy or get government-sponsored advantages. This is a 12-digit identification number issued by the Ministry of MSME after the registration process is completed.
The registration process for Udyog Adhar is straightforward, quick, and free. The certificate can only be obtained by registering online using the Udyam Registration portal.
You must fill out two forms on the Udyog Aadhar online registration portal:
Memorandum to Entrepreneurs-I
Memorandum to Entrepreneurs-II
Documents and information needed:
- Aadhaar: The firm owner or key workers must provide their personal Aadhaar information.
- The promoter’s name, address proof, phone number, and e-mail
- Other Backward Castes/General/Scheduled Tribe (ST)/Scheduled Caste (SC)/Other Backward Castes/Other Backward Castes/Other Backward Castes/Other Backward Castes/Other Backward Cast (OBC)
- Proof of the company’s name and address
- Private Limited Company, Co-operative, Proprietorship, Public Limited Company, Partnership Firm, Self-Help Group, LLP, or other business structures
- Date of start and any previous MSME registration information
- Bank account information
- Number of employees
- National Industrial Classification (NIC) Code: Choose one from the handbook of the National Industrial Classification.
- The District Industry Center’s specifics (DIC)
- Total capital expenditure on plant, machinery, and equipment
Process of registering:
- Enter your 12-digit Aadhaar number and name into the Udyam Registration portal.
- Create and verify an OTP.
- Fill out the above-mentioned one-page registration forms, including your NIC and business information.
- You will need to submit separate applications if you want to register for more than one industry.
- Self-certify the business’s details, such as its length of existence, bank account information, ownership and employee information, and so on.
- After you’ve finished, double-check the information you’ve submitted to be sure there aren’t any mistakes.
- Click the ‘Submit’ button at the bottom of the page. A new OTP will be created and delivered to the phone number you provided.
- To finish the application, enter the OTP and click ‘Submit.’
The Udyog Aadhar Loan has a number of advantages:
The most significant source of suffering for small firms is a lack of finance. They require vital funding without which start-ups will not be able to take off. It is tough to obtain financing due to a lack of company experience and assets. Businesses can’t expand or gain credibility if they don’t have enough money. As a result, the vicious cycle persists.
The Central and State governments, through various public and commercial institutions, have made it easier to acquire a business loan with the help of Udyog Aadhaar in order to boost the MSME industry, which accounts for around 45 percent of India’s GDP.
Loans with no collateral
This is one of the most significant benefits of obtaining a Udyog Aadhaar loan. As previously stated, fledgling firms have little assets with which to secure a loan. Obtaining standard structured loans becomes tough as a result.
The business loan eligibility for a collateral-free loan is analyzed with Udyog Aadhaar based on the promoter’s personal details, his/her educational qualifications, the type of industry, and business.
A large loan network
It’s impossible to meet financial needs through a single agency because firms develop in every area of the country. As a result, public and commercial banks, non-banking financial institutions, Micro Units Development and Refinance Agency (MUDRA), small scale companies, Small Industries Development Bank of India (SIDBI), and other financial partners have made Udyog Aadhar loans available.
The government can meet the requirements of millions of small companies around the country by leveraging this vast network of service providers.
Industry-specific funding and scalability
Every firm has its own requirements. Entrepreneurs can seek funding from the appropriate agency based on their industry and firm size. This increases the likelihood of obtaining a larger loan.
For example, a textile company can contact the Khadi and Village Industries Commission (KVIC) directly and obtain funding up to Rs 25 lakh for a new manufacturing facility depending on its business loan eligibility.
Suggested Read- Print Udyam Registration Certificate
The Udyog Aadhar card is a vital piece of information. You can use it to submit bids for government contracts and tenders. It also makes applying for government subsidies and obtaining a no-collateral business loan considerably easier.