Since the past few months, the Indian government has taken quite a few steps towards revival of small businesses such as providing security for MSME loans. One of the latest initiatives in this direction has been the Udyog Aadhar registration initiative.
If you’re uninitiated, you must be confused about the difference between Udyog Aadhar and MSME (Micro, Small, and Medium Enterprises) registration. Let’s look at the features, procedures, and benefits of Udyog Aadhar registration and MSME registration.
What is Udyog Aadhar?
Udyog Aadhar is basically a government registration process which provides a registration certificate for your company along with a unique number known as your Udyog Aadhar number. This initiative is especially for SMEs. The goal of Udyog Aadhar is to give businesses maximum access to government schemes.
How to register for Udyog Aadhar?
To register for Udyog Aadhar and take advantage of all the Udyog Aadhar benefits, there are some basic steps to be followed. The main part of this simple process is the UAM (Udyog Aadhar Memorandum) which is a self-declaration form. Here’s the complete process for
- The one-page form can be filled online or offline. In order to register online, you can visit the government’s official MSME website.
- Use individual registration in case you want to register for multiple industries.
- In the form, you will have to self-certify your business, business activity details, bank details, employment and ownership details, etc. with self-certified certificates.
- There are no fees required for the submission of this form.
- After submitting the form, a registration number will be generated and mailed to you along with the unique Udyog Aadhar Number (UAN) of your company.
Now that you know how simple the process is, let us have a look at Udyog Aadhar benefits.
Benefits of Udyog Aadhar registration
- One of the main benefits of Udyog Aadhar registration is that you can avail a lot of government schemes such as a micro business loans, unsecured MSME loans, subsidized rates, easy loans, etc.
- You can enjoy financial support for participation in foreign expos.
- Opening of current bank accounts will become hassle-free.
- One of the major Udyog Aadhar benefits you can enjoy is exemption on excise and indirect taxes.
- You will be able to file for trademarks and patents at lower rates.
- You will receive concessions on your electricity bills as well.
Additional Read: A Detailed Guide to the Udyog Aadhar Registration Process
The aim of this new initiative is to provide a better alternative to business owners between MSME and Udyog Aadhar registration.
Now that you know about Udyog Aadhar, let us also look at MSME registration in detail to understand the difference between Udyog Aadhar and MSME.
What is MSME registration?
In order to promote MSMEs, which are the backbone of the Indian economy, the MSMED Act facilitates a lot of schemes, subsidies, and incentives. To be able to benefit from these, you need to get your MSME registered, although it is not compulsory.
Steps for MSME registration
- Fill the application with company name, registration number, GST number, and other relevant details.
- Fill in your personal details including name, bank details, address, PAN, etc. along with a photo.
- Your application will be processed and reviewed by an official executive, who will ask you to make changes in case of discrepancies.
- Once that is done, you will soon receive your digital MSME registration certificate.
Benefits of MSME registration
- Access to all state and central government schemes.
- Easy access to subsidies, MSME loans, different types of business loan, etc.
- A chance to avail a bank loan at lower rates (1% to 1.5%).
- Benefits of tax rebates.
- Access to government tenders opened especially for MSMEs.
- Registration of patents at lower costs.
- Preference for government licenses and certifications.
Additional Read: Why Is MSME Loan the Perfect Finance for Small Business Owners?
Difference between Udyog Aadhar and MSME
Both MSME and Udyog Aadhar registration processes are quite similar but they are different initiatives. Udyog Aadhar can be an easy means to acquire MSME registration. So, you can easily apply for MSME registration once you get your 12-digit Udyog Aadhar number. For your business to get maximum benefits, it would be a good idea to get both MSME and Udyog Aadhar registrations done.
Looking for a business loan?
While the government is making paperwork and accessibility easier for your business with MSME and Udyog Aadhar registrations, we have something to help you with your urgent finances as well.
Try Tata Capital Unsecured Business Loans which are customized to your business plan, quick, hassle-free, and offer flexible repayment options. With the support of government initiatives and the right loan, your business will soon tide over difficult times and prosper.