Know the Difference between MSME Registration and Udyog Aadhar
MSME that is, Micro, Small and Medium Enterprises are the backbone of the Indian Economy. It is the source for the growth and development of our country. The government has taken many initiatives by introducing many schemes, incentives and subsidies to promote the growth of micro, small and medium enterprises through MSMED Act. And to get these benefits, it is necessary to get the MSME registration. Another initiative that has been taken is the Udyog Aadhar registration initiative. This sometimes leads to confusion for the business owners between MSME registration and Udyog Aadhar Registration. Therefore, this article will help you to know the difference between MSME Registration and Udyog Aadhar.
What is Udyog Aadhar?
Udyog Aadhar is a government registration process which provides a registration certificate to a company. A unique number that is, Udyog Aadhar number is provided. This initiative is done while taking into consideration the growth of small medium enterprises. The purpose of Udyog Aadhar is to give maximum benefits and access to the businesses of the schemes of the government.
It is a 12 digit Aadhar number and it is necessary for the businesses to have an MSME registration certificate.
Udyog Aadhar Registration process
To get the benefits of Udyog Aadhar, the simple process for registration has to be followed. A self-declaration form that is, Udyog Aadhar Memorandum (UAM) is the main requirement for the registration process.
The complete registration procedure is as follows:
- The applicant is required to fill a one- page form either offline or online. If the registration is done online, the applicant has to visit the official MSME website of the government. The applicant has to provide the Aadhar number, bank account details, business existence, employment and ownership details and the other details that are required along with self-certified certificates.
- The individual registration can be used to register multiple industries.
- No fees shall be charged for the submission of the form.
- Once the form is submitted, a Udyog Aadhar Acknowledgement will be generated and mailed to the applicant’s email address.
- The Acknowledgement form contains a unique UAN that is, Udyog Aadhar Number.
What are the Benefits of Udyog Aadhar Registration?
Once the Udyog Aadhar Registration is done, there are many advantages that can be enjoyed by MSMEs. The registration process is quite simple and does not require a lot of paperwork. The benefits of Udyog Aadhar Registration are:
- A lot of government schemes can be availed by MSMEs such as unsecured MSME loans, easy loans, micro business loans, subsidized rates and etc.
- MSMEs can get financial support when participating in foreign expos.
- The filing of patents and trademarks can be done at lower rates.
- Current bank accounts can be opened hassle-free.
- Exemption on excise.
- Exemption on indirect taxes.
- Can avail credit guarantee scheme.
- Can avail concession on electricity bills as well.
What is MSME Registration?
MSMED Act provides with many schemes, incentives and subsidies which helps to promote the growth of MSMEs, being the backbone of the Indian economy. MSME registration is required to avail such benefits. MSMEs promote equitable development and provide great opportunities for employment. It plays a very important role in the overall production and exports in India as well. To get the MSME registration, one must own an LLP, Public Limited Company, Private Limited Company or a proprietorship firm.
MSME Registration Process
Even though it is not compulsory to register MSME under the MSMED Act, however, many benefits and access to subsidies and schemes can be provided to MSME upon its registration. The process for MSME registration is as follows:
- The applicant must fill the application with the details such as GST Number, company name, registration number and other details as required.
- The applicant is required to fill the personal details that is, name, address, PAN number, bank details, a photograph and etc.
- Once the application is submitted, it shall be processed further and reviewed by an official executive. If any discrepancies occur, the executive shall intimate the applicant to make changes in the application.
- Once the application is accepted, the applicant shall receive a digital MSME registration certificate.
What are the Benefits of MSME Registration?
Once the MSME registration certificate is received, the MSMEs enjoy many benefits of the registration as follows:
- Upon the registration, the MSME gets access to all the central and state government schemes.
- The MSMEs get easy access to different types of business loan, subsidies, MSME loans and etc.
- Tax rebates benefits
- Can avail bank loan at lower rates that is, 1% to 1.5%
- Access to government tenders opened specially for MSMEs
- MSMEs get preference for government certifications and licenses as well.
What is the difference between MSME Registration and Udyog Aadhar?
The MSME registration and Udyog Aadhar registration process is even though similar; however, there are different initiatives under both of them. Udyog Aadhar can be easy means to get MSME registration. MSME registration can be easily applied once a 12 digit Udyod Aadhar number is obtained. Therefore, to get the maximum benefits, it would be a better idea to get both the MSME registration and Udyog Aadhar registration done.
It has already been discussed that it is a better idea to obtain both MSME registration and Udyog Aadhar registration. Both the registrations help to maximize the profitability of the business. The motive of the government is to help the Micro, Small and Medium Enterprises (MSME) to grow and develop, which would further contribute towards the growth of the Indian economy. MSME registration and Udyog Aadhar registration have changed the things and improved the functioning of MSMEs.
Read our article:How Can MSME Registration Guarantees Business Growth In India?