Udyam Aadhar Certificate is the document that gives your small business a Big identity. If you are running a small or medium-sized business in India, you must have heard the terms MSME or Udyam. In simple terms, the Udyam Aadhar certificate is a government identity card for your business. Just as the Aadhar card is essential for our personal identification, the Udyam Certificate is the official identity for a small business owner.
The government of India replaced the old system( Udyog Aadhar) with a simpler one on July 1, 2020. And it is now known as Udyam Registration. Let’s learn what it is, its benefits, and how you can obtain it.
What is a Udyam Aadhar Certificate?
In simple terms, Udyam Aadhar is a certificate of Udyam Registration Certificate. If your business falls under the MSME category and you register it, this registration is called Udyam Aadhar registration. The certificate received after this process is the Udyam Aadhar certificate. It can also be seen as a 19-digit unique identification number issued by the Government of India to MSME enterprises
What exactly is MSME?
Full Form: It stands for Micro, Small & Medium Enterprises.
- The Backbone: It represents all small-scale and medium-sized businesses that drive India’s economy.
- Categories: Businesses are divided into three groups (Micro, Small, or Medium) based on how much money is invested and their yearly sales.
- 2020 Update: The government changed the rules in 2020 so that even larger “small” businesses can now get government benefits.
- Purpose: The MSME tag helps small business owners get cheaper loans, subsidies, and protection from big competitors
Why is Aadhar Udyam Certificate important for your business?
In India, millions of people earn their livelihood through small businesses. These businesses are the backbone of the country’s economy, and therefore, the government offers several schemes and facilities to support them. However, for the government to provide these benefits, it needs accurate information about your business.
When you register your business, it becomes a recognized entity in the eyes of the government. The importance of this can be easily understood from the points below:
Key Benefits of the Udyam Aadhar Certificate:
- Collateral-free loans: After registration as an MSME, obtaining business loans from a bank becomes signification easier. Under the credit guarantee Suchme, you can get a loan without pledging any property as collateral.
- Priority in government tenders: Many government tenders are reserved exclusively for MSME companies. Additionally, there are exemptions on the security deposit required when bidding for tenders.
- Reduced interest rates: Banks often offer loans to businesses with a Udyam certificate at interest rates of 1% to 1.5% lower than those offered to regular customers.
- Electricity and Tax Benefits: Many states provide subsidies on electricity bills for industry. Furthermore, certain exemptions may be available on direct taxes and excise duties.
- Easier Licensing and Registration: The Udyam Certificate serves as a strong supporting document when obtaining trade licenses, GST registration, or other government permits.
When you have a Udyam Aadhar Certificate:
- Customers trust you more
- It becomes easier to work with large clients
The chances of getting tenders and government projects increase
How is MSME Classification done?
In Udyam Aadhar, businesses are divided into three categories:
Micro Enterprise
- Limited investment and turnover
- Small traders, startups, service providers
Small Enterprise
- Medium-sized business
- Manufacturing or service unit
Medium Enterprise
- Large business
- Higher investment and turnover
- Validity of Udyam Aadhar Certificate
What is required for registration?
The best thing about Udyam registration is that it is completely paperless. You don’t need to upload any physical documents. You just need to have the following information handy:
- Your Aadhar Number
- PAN card of the business owner or company.
- Business name and address.
- Bank account number and IFSC code.
- GST number
What information is included in the Udyam Aadhar certificate?
When you download your Aadhar Udyam Certificate, it clearly displays important details related to your business. These key details are easy to understand:
- Udyam Number: Your business’s unique digital ID number, which is always one-of-a-kind.
- Business Name: The official name of your shop or firm.
- Category: The category your business falls under – Micro, Small, or Medium.
- Type of Activity: What you do – Manufacturing or Services.
- Date of Commencement: The date your business started.
- QR Code: A scannable code for quick verification.
What is the Validity of Udyam Aadhar Certificate?
The Udyam Certificate does not have an expiry date. Once issued, it remains valid for a lifetime. You simply need to ensure that you file your
Income Tax Returns (ITR) and GST returns every year, so that your turnover is automatically updated on the portal.
Conclusion
If you want to transform your small business into a big brand, the Udyam Aadhar Certificate or Aadhar Udyam Certificate is your first step. It not only allows you to benefit from government schemes but also enhances the credibility of your business in the market. If you haven’t registered yet, do so today and secure the future of your business.
