The Udyog Aadhar certificate is a unique 12-digit registration number provided by the Ministry of Micro, Small, and Medium Enterprises (MSME) to small and medium enterprises (SMEs) in India. It serves as a single-window mechanism for MSMEs to avail of various benefits and schemes offered by the government of India. The main purpose of Udyog Aadhaar is to promote ease of doing business and simplify the registration process for MSMEs. It is a significant initiative that provides MSMEs with a formal identity, helping them to participate in the mainstream economy and avail of various benefits such as subsidies, schemes, and priority in government procurement. In summary, the Udyog Aadhaar certificate is a government-provided registration certificate that aims to promote the growth and development of MSMEs in India by simplifying their registration process and providing various benefits.
Difference between Udyog Aadhar and Udyam Registration
Udyog Aadhar and Udyam registration are both processes that allow micro, small, and medium enterprises (MSMEs) to obtain a certificate recognizing their business entity as an MSME. However, there are some differences between the two:
Name: The name of the registration process has been changed from Udyog Aadhar to Udyam registration, as per the notification issued by the Ministry of Micro, Small and Medium Enterprises (MSME) in June 2020.
Threshold Limits: The threshold limits for classification of MSMEs have been revised under the Udyam registration process. Earlier, the classification was based on investment in plant and machinery or equipment, whereas now, the classification is based on both investment and turnover.
Registration Criteria: The registration criteria for Udyam registration are stricter compared to the earlier Udyog Aadhar process. Businesses need to provide additional details and documents such as GSTIN, PAN, and Aadhaar, and the registration process is entirely online.
Validity: The Udyam certificate is valid for a lifetime, whereas the Udyog Aadhar certificate was valid for five years. However, businesses need to update their Udyam registration certificate in case of any changes in the details submitted during registration, such as turnover or investment.
Benefits: The benefits offered by Udyog Aadhar and Udyam registration are mostly the same, such as access to government schemes, subsidies, and credit facilities. However, the Udyam registration process has been designed to be more streamlined and efficient compared to the Udyog Aadhar process.
While Udyog Aadhar and Udyam registration serve the same purpose of recognizing MSMEs, there are some significant differences between the two processes. The Udyam registration process is more stringent, has revised threshold limits and is designed to be more streamlined and efficient. The Udyam certificate is valid for a lifetime, and businesses need to update their registration in case of any changes.
Importance of Udyog Aadhar Certificate for MSMEs
The Udyog Aadhar certificate is an essential document for micro, small, and medium enterprises (MSMEs) in India. Here are some reasons why the Udyog Aadhar certificate is important for MSMEs.
Recognition as an MSME: The Udyog Aadhar certificate serves as recognition of a business entity as an MSME, which helps in availing various benefits and schemes offered by the government.
Easy Access to Finance: Banks and financial institutions prefer lending to MSMEs with a Udyog Aadhar certificate, as it serves as a testament to the enterprise’s authenticity, making it easier for them to secure loans and credit.
Government Subsidies and Incentives: The government offers various subsidies, incentives, and schemes exclusively for MSMEs to promote their growth and development. With a Udyog Aadhar certificate, MSMEs can access these benefits and avail of the incentives offered by the government.
Participation in Government Tenders: MSMEs can participate in government tenders more easily if they have a Udyog Aadhar certificate, as it provides a valid proof of their existence and recognition as an MSME.
Tax Benefits: MSMEs with a Udyog Aadhar certificate can avail of tax benefits under various government schemes, such as the GST Composition Scheme.
Ease of Doing Business: The Udyog Aadhar registration process is entirely online and can be completed quickly, making it easy for MSMEs to register and receive their certificate, saving time and resources.
The Udyog Aadhar certificate is an important document for MSMEs, providing them with recognition as an MSME, easy access to finance, government subsidies and incentives, participation in government tenders, tax benefits, and ease of doing business. Hence, MSMEs should register for Udyog Aadhar to avail the benefits it offers.
Details of the authorized signatory and their role in the registration process
The authorized signatory is a person who has been authorized by the business to sign legal documents, including those related to Udyog Aadhar registration. Here are some details about the authorized signatory and their role in the Udyog Aadhar registration process:
Eligibility: The authorized signatory can be the owner of the business or any other person authorized to sign on behalf of the business, such as a partner, director, or authorized signatory appointed by the board of directors.
Role in Registration: The authorized signatory plays a critical role in the Udyog Aadhar registration process. They need to provide their Aadhaar card details, PAN card details, and other relevant information. They are also responsible for verifying and submitting the application form after ensuring that all the information provided is accurate and up to date.
Verification Process: Once the application is submitted, the authorized signatory will receive an OTP on their registered mobile number for verification purposes. They need to enter this OTP on the Udyog Aadhar portal to complete the verification process.
Responsibility: The authorized signatory is responsible for ensuring that all the documents and information provided during the registration process are valid and up to date. They should also ensure that the Udyog Aadhar certificate is obtained and maintained throughout the business’s operation.
Change of Authorized Signatory: In case of a change in the authorized signatory, the business needs to update the Udyog Aadhar registration details on the portal with the new authorized signatory’s details.
The authorized signatory is a critical figure in the Udyog Aadhar registration process, responsible for providing accurate and up-to-date information and documents, verifying and submitting the application form, and ensuring that the Udyog Aadhar certificate is obtained and maintained throughout the business’s operation.