Benefits of Udyog Aadhar
What is Udyog Aadhar?
Introduction of Udyog Aadhar was to simplify the process for the business owners to register their business under Micro Small Medium Enterprise or MSME.
Earlier the procedure for MSME Registration was hectic and time-consuming but with the introduction of Udyog Aadhaar, things have changed to a certain extent.
Udyog Aadhar is a government registration provided with a recognition certificate and a unique number in order to certify micro, small and medium enterprises.
Before initiating UAM system (Udyog Aadhar Memorandum), there used to be a former system of EM-I/II (Entrepreneur Memorandum). Entrepreneur Memorandum –I (EM-I) and Entrepreneur Memorandum –II (EM-II) forms which in turn consisted of almost 11 different forms along with the necessary attested certificates.
Under EM-I/II system the registration was 21,96,902 (2007 - 15) and later from the year 2015 till today it has reached to 68,06,714.
Not only this, but there are various other benefits of Udyog Aadhar for Micro, Small and Medium Enterprises in India. Here in this article, we will understand the benefits of Udyog Aadhar Registration.
Benefits of Udyog Aadhar
The business owner will get protection against delay in Payment.
Collateral free loans
You can also avail collateral free loans from the bank.
The business owner can avail octroi benefits.
Claim stamp duty and registration charges.
Rate of interest
Rate of interest from the banks can be reduced.
Concession in electricity
The business owner who opts for Udyog Aadhar can get a concession on Electricity bills.
Interest on OD
Exemption of 1\\% interest on Overdraft.
Can avail subsidy from NSIC and credit ratings & Eligible for IPS subsidy.
Reimbursement on the payment made for obtaining the ISO certificate.
Reservation of products for exclusive manufacturing by MSME and SSI.
Avail Excise Exemption Scheme.
Avail exemption while applying for government tenders.
Exemption under direct tax laws.
Enjoy easy bank mortgage.
Can become a part of International business fairs.
Benefits for States and Union territories
States and Union territories have their own package of facilities and incentives for small scale.
5 Salient Features of Udyog Aadhar
The registration can be done online just with a single click, the person doesn’t have to visit the office personally.
UAM (Udyog Aadar memorandum) can be filed by self-declaration with the details of the enterprise.
It is possible to file more than one Udyog Aadhar with similar Aadhar number.
The filing is done for free.
There is a basic requirement for filing, such as Aadhar number, Industry name, Address, Bank details.
As explained above there are various benefits of getting a Udyog aadhar for your business, along with that filing and registration is also very easy. In case you have any doubt regarding Udyog aadhar registration, you can consult with LegalDocs experts.