CA Sagar Khubchandani
MSMEs, you are the power house of the India’s economy. Feel proud of it. The government recognizes your importance and hence, promotes you, provides you enormous benefits. Udyog Aadhaar is a valuable present that the government has provided for small and medium businesses.
To register your business as SME (Small and Medium Enterprises), you are required to register under Udyog Aadhaar, which was earlier called MSME registration.
First, why do I need to register?
The Ministry of Micro, Small and Medium Enterprises (MSME) have been assigned a task to support, promote, and regulate the MSMEs in the country. Financial and technical support is provided to the Indian entrepreneurs and small businesses, beside capacity building programs.
The following benefits are provided to the businesses by MSME departments:
♥ Eligibility for the government schemes for funding like
a) Loan without guarantee
b) Easy loan
c) Loan at concessional rate of interest
♥ Financial support from the government to participate in the foreign expo
♥ Various government subsidies
♥ Priority sector lending schemes
♥ Excise Exemption Scheme
♥ Exemption under direct tax laws: Income Tax on SMEs have also been reduced to 25%.
♥ Incentives and schemes laid down by respective states that include power tariff concessions, capital investment subsidies,tax concessions,etc.
Udyog Aadhaar is a great way to get these perks.
1. Aadhaar Number: 12-digit Aadhaar number of the applicant is mandatory.
2. Name of the owner: The name has to be exactly same as that mentioned in Aadhaar Card. If the name of the applicant is Pan Singh Tomar, and on Aadhaar, it is mentioned Pan S. Tomar, then, Pan S. Tomar will only be mentioned as the name.
3. Social Category: Applicant’s caste: General/SC/ST/OBC is needed. For categories other than general, proof of belonging to that category is required.
4. Name of Business: The name of the enterprise is required to be filled, by which his/her enterprise is known to the public and needed to provide legal documents for that.
More than one business can also be registered with single aadhaar number.
5. Type of Business: You need to select the type of entity from the given options, which are:
b) Partnership Firm
c) Hindu Undivided Family
d) Private Limited Company
e) Cooperative Society
f) Public Limited Company
g) Self Help Group
6. Postal Address: Address of place of business needs to be entered here, along with email and mobile number.
7. Date of Commencement of business
8. Previous Registration Details: Details of registration as MSME earlier, if any to be shared here.
9. Bank Details: Bank account number and IFSC Code to be provided in this field.
10. Major Activity: Major area of business activity: Manufacturing or Service
11. NIC Code: NIC Code is National Industrial Classification (NIC) Code, which needs to be entered from NIC handbook.
12. Number of persons employed in the business to be entered
13. Amount of investment in plant and machinery to be entered
14. DIC: Details of District Industry Centre nearest to the business, to be filled, if needed.
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