If you want to start or grow your small business in India, then you need to register for Udyam Aadhaar. Udyam Aadhaar is a registration for Micro, Small, and Medium Enterprises (MSMEs) which is issued by the Government of India to help them getting loans, subsidies, and tax exemptions.
Here we have explained the full process of registering for Udyam Aadhaar. If you want to register for Udyam aadhaar then follow this guide:
What is Udyam Aadhaar?
Udyam Aadhaar is government issued unique identity number for small businesses in India. It has replaced the earlier MSME registration for entrepreneurs to make it easy. Udyam aadhaar is totally free of cost and is online.
Why to Register for Udyam Aadhaar?
There are so many benefits of registering for Udyam aadhaar, a few of common are:
- Easier Loan Approvals: Businesses who register on this can get loans at lower interest rates.
- Subsidies and Schemes: You can avail government subsidies on power, taxes, and other expenses.
- Tax Benefits: Businesses get exemptions on direct taxes if registered for Udyam aadhaar.
- Ease of Business: To get protection against delayed payments.
Who Can Apply for Udyam Aadhaar?
All Micro, Small, or Medium Enterprises (MSME) businesses can register as peer their category and it depends on:
Investment in Plant and Machinery or Equipment:
- Micro: Up to Rs.1 crore
- Small: Rs.1 crore to Rs.10 crore
- Medium: Rs.10 crore to Rs.50 crore
Annual Turnover:
- Micro: Up to Rs.5 crore
- Small: Rs.5 crore to Rs.50 crore
- Medium: Rs.50 crore to Rs.250 crore
As per the above criteria both manufacturing and service-based businesses can apply based on their respective categories.
Step-by-Step Process to Register for Udyam Aadhaar
Step 1: Visit the Udyam Registration Portal
Firstly you need to open the official Udyam Registration website.
Step 2: Enter Aadhaar Details
Enter your details as per the following:
- For proprietorships: Use the Aadhaar number of the business owner.
- For partnerships or companies: Use the Aadhaar number of the managing partner or director.
Steps:
- Type your Aadhaar number correctly.
- Enter your name as printed on your Aadhaar.
- Verify by OTP received on your registered mobile number.
Note: If your Aadhaar is not linked to your mobile number then you will not receive the OTP and you will not able to register, update your mobile number first before proceeding for it.
Step 3: Fill in Business Details
You’ll need to provide:
- Business name
- Type of organization (proprietorship, partnership, company, etc.)
- PAN number (mandatory for businesses that require it)
- Business start date
- Address and contact details
Step 4: Provide Additional Information
Next, you’ll be asked to provide your banking and business information, such as:
- Bank Details: Your Bank Account number and IFSC code.
- Investment and Turnover Details: Provide estimates of your investments in plant and machinery or equipment. Mention your annual turnover in figures as documented correctly.
Step 5: Industry and Activity Details
Now you need to select your industry type and the main category of your business:
- Manufacturing or Services.
- Choose your NIC (National Industrial Classification) code. You can easily find this list on the registration portal and find your number as per your business type.
Step 6: Verify and Submit
- Double-check all the entered information.
- Submit your form.
- You’ll receive an OTP for final verification and confirmation.
Step 7: Receive Udyam Registration Certificate
Once you submit your form correctly, you’ll get your Udyam Registration Certificate on your provided and registered email address, if all things are correct. This certificate contains your unique Udyam Aadhaar Number.
Common Questions About Udyam Aadhaar
Q: Is Udyam Registration free?
A: Yes, this registration is completely free and all businesses can easily apply and register themselves for this.
Q: What documents are needed?
A: Documents you will need are:
- Aadhaar number (mandatory)
- PAN number (for companies or businesses above a certain size)
- Bank details
Q: Can existing businesses apply?
A: Yes, If you run a business already and have not registered for it, you can register for Udyam Aadhaar.
Q: What happens after registration?
A: You’ll receive your certificate, which you can use to avail of various government benefits.
Q: Can I make corrections after submitting the form?
A: Yes, if you have done any error in entering your details then you can edit it by logging into your portal.
Registering for Udyam Aadhaar is a simple process and all businesses who fall in its category should apply for it to get benefits provided by the Indian Government. If you don’t know the process of Udyam Aadhaar registration then follow this guide and if you have more questions, visit the official Udyam Registration FAQ page.
