A scheme exclusively works for the Ministry of Micro, Small and Medium Enterprises (MSME) where a unique code is issued to small and medium sized enterprises is popularly known as Udyam Aadhar registration. It is a government initiative aimed at providing a single identification number to SMEs, which can be used to access various benefits offered by the government. In this blog, we will discuss who can get Udyam Aadhar registration and the eligibility criteria for the same.
Who can get Udyam Aadhar registration?
Any enterprise that falls under the definition of a micro, small or medium enterprise can get Udyam Aadhar registration. As per the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, an enterprise is defined based on the following criteria:
Micro Enterprise
A business that has up to Rs. 1 crore invested in machinery, equipment, or plant. This is also known as microbusiness and they employ a few people. They can appoint up to 10. Micro enterprises could have a turnover up to 5 crore; not more than that.
Small Enterprise
A business that invests money worth Rs. 10 crore for machinery and equipment or plant. They are larger in size in comparison to micro enterprises yet employ a few people. They are mostly into manufacturing business. Their turnover should be below 50 crores.
Medium Enterprise
An organisation that has invested up to Rs. 50 crore in machinery, equipment, or plant. Their annual turnover could be up to 250 crore annually.
Eligibility Criteria for Udyam Aadhar registration:
The eligibility criteria for Udyam Aadhar registration is essential to understand as most people fill the application without understanding this concept. Here the eligibility criteria for Udyam Aadhar registration are as follows:
- The enterprise must be registered as a sole proprietorship, partnership, private limited company, or any other legal entity.
- It is compulsory to possess a PAN card by enterprise.
- It is mandatory for enterprises to have an Aadhaar card that is valid.
- The enterprise must not have exceeded the investment limit as specified in the MSMED Act, 2006.
- The enterprise must not have exceeded the turnover limit as specified in the MSMED Act, 2006.
- The enterprise must not be engaged in any prohibited activities as specified by the government.
Benefits of Udyam Aadhar registration
To extend helping hands to the small business owners, the government has issued many schemes and under Udyam aadhar, owners can avail all the benefits. However, many entrepreneurs are unaware about the benefits. So to resolve the issue of lack of knowledge, we have come up with a list of all the benefits that small businesses could receive. Udyam Aadhar registration provides various benefits to small and medium enterprises, some of which are as follows:
Access to government schemes and programs
Udyam Aadhar registration makes the enterprise eligible for various government schemes and programs aimed at supporting SMEs.
Credit Guarantee Fund Scheme
The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) provides collateral-free credit to SMEs. Udyam Aadhar registration makes the enterprise eligible for this scheme.
Subsidies
The government provides various subsidies to SMEs for investment in plants and machinery. Udyam Aadhar registration makes the enterprise eligible for such subsidies.
Tax exemptions
The government provides various tax exemptions to SMEs. Udyam Aadhar registration makes the enterprise eligible for such tax exemptions.
Bottom line
Udyam Aadhar registration is available to micro, small and medium enterprises that meet the eligibility criteria. It provides various benefits to SMEs, including access to government schemes and programs, credit guarantee, subsidies and tax exemptions. If you are a small or medium enterprise, it is highly recommended that you register for Udyam Aadhar to avail these benefits.
To receive the Udyam Aadhar certificate quickly, you could register your business through the Udyog Aadhar platform. This platform allows you to fill in all the information through easy steps so that you won’t miss any essential details. Also, with the assistance of our professional consultants, you would receive registration within the prescribed period of time. Here you can also receive all the significant information from our highly qualified policy analyst. With us, get the Udyam Aadhar certificate quickly. With us, you can sit back relax and after filling all the information and wait for the our team to get connect with you.
