{"id":1336,"date":"2018-09-11T08:57:59","date_gmt":"2018-09-11T08:57:59","guid":{"rendered":"https:\/\/blog.kredx.com\/?p=1336"},"modified":"2023-10-26T06:01:56","modified_gmt":"2023-10-26T06:01:56","slug":"udyog-aadhaar-registration-why-how","status":"publish","type":"post","link":"https:\/\/www.kredx.com\/blog\/udyog-aadhaar-registration-why-how\/","title":{"rendered":"Udyog Aadhaar Registration \u2013 Why & How"},"content":{"rendered":"\t\t
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Okay, so you\u2019ve come up with a brilliant small business idea; you have a business plan, you\u2019ve got the resources and your registration papers are in order. But, what about your Udyog Aadhaar Registration?<\/p>

The MSME industry in India contributes to almost 40% of the gross industrial value. As a result of this, it has an extended support system from the central and state governments these days.<\/p>

In an effort to further simplify the processes within the industry, the Udyog Aadhaar registration<\/em> was introduced. The Udyog Aadhaar (UA) is nothing but an ID for your business much like the Aadhaar cards we have for individuals. It\u2019s a 12-digit number that helps the government identify your company and gives you a slew of benefits under the MSMED Act of 2006. Previously, the UA registration was known under the names of SSI (Small Scale Industries) Certificate or MSME Registration.The SSI Certificate was renamed to Udyog Aadhaar with an easier one-page registration process instead of long time-consuming EM (Entrepreneurs Memorandum)\u00a0I\/II forms.<\/p>

The Why<\/b><\/h2>

One word.\u00a0Subsidies<\/strong>! Most state governments give UA registered companies subsidies on everything from power to tax and entry fees to industrial corridors and estates. Companies in its nascent years also get exempted from sales taxes, excise taxes and some direct taxes usually. Additionally, the central government announces schemes specifically targeted at micro, small and medium businesses from time to time such as the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) that was announced recently. A UA registration also opens up a whole lot of benefits from banks. MSME\u2019s get preferential rates of interest on loans, get quicker loan approvals, priority sector lending, etc.<\/p>

Also, if you own a sole proprietorship firm, holding an Udyog Aadhaar acts as a proof that your business is legal in case you do not have VAT certificate or a Shop Act license. All you need to do is provide your UA as an ID proof for your company when applying for loans or opening an account with a bank.<\/p>

Earlier, the Small Scale Industries Registration (SSI) was voluntary and as a result lot of MSME\u2019s went unnoticed. With the introduction of UA, businesses choose to be registered due to the many benefits of being registered.<\/p>

The How<\/b><\/h2>

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Applying for a Udyog Aadhaar registration\u00a0is fairly simple and straightforward. The single-page application is free and open to both new and existing companies. You can choose to apply for an UA either online or offline depending on your convenience. All you need are certain basic details such as:<\/p>