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What is Udyog Aadhaar? Benefits & Registration Process

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With around 42.5 million units across the country, and comprising more than 90% of the total industrial establishments in India – the MSME (micro, small and medium enterprise) sector is the backbone of the nation’s economic growth. 

In fact, the MSME sector is responsible for 49% of the total manufacturing output in the country. Hence, to facilitate the efforts of the MSME sector, the ministry of MSME in conjunction with the GOI has launched the Udyog Aadhaar registration facility. 

If you are wondering what it is – it is an identification system similar to that of Aadhaar, but tailor-made for business purposes. As an SME or MSME, one can enjoy its unique benefits through subsidies. The main purpose of this registration program is to promote the growth of all registered businesses in India. 

What is Udyog Aadhaar?   

It comprises of a unique 12-digit identification number provided by the Ministry of MSME for the micro, small and medium enterprises to register themselves under this ‘Aadhaar for Business’ program. 

A sole proprietorship that does not have official government recognition is advised to register under this program to avail the numerous Udyog Aadhaar benefits. 

List of benefits 

  1. Protection against any delay in payment of finished goods.
  2. Quick resolution of any monetary disputes.
  3. Reduced interest rates from lending institutions.
  4. Enjoy a 15% subsidy for technology upgrade under the CLCSS scheme.
  5. Procure collateral-free business loans from financial institutions and NBFCs.
  6. Enjoy Octroi benefits after Udyog Aadhaar registration.
  7. Exclusive consideration if one participates in International Trade Fair.
  8. A waiver on stamp duties and other registration fees.
  9.  Exemptions when you apply for Government tenders.
  10. Reimbursement of the payment needed for obtaining ISO certification.
  11. 1% exemption on the interest rate on OD.
  12. Subsidies on NSIC performance, barcode registration and credit ratings.
  13. Enjoy the benefits of MSME loans at subsidised rates.

The other benefits of Udyog Aadhaar extend to –

  • Convenient registration and approval procedure while obtaining licenses.
  • Eligible for IPS subsidies.
  • Preference in the allocation of various Government tenders.
  • Enjoy 50% subsidy on patent registration.

Apart from the multitude of benefits that one can enjoy after Udyog Aadhaar registration, you can also get early access to numerous government loan schemes in India like Mudra loan, Stand Up India Scheme, CGTMSE, etc introduced to facilitate businesses.

All of these benefits are crucial for an enterprise as it helps you to gain access to instant capital and enjoy numerous government aids. Additionally, you can couple the benefits with lucrative business advances from lenders like Bajaj Finserv – to expand your business or upgrade the existing setup. Besides, if you are an existing customer of the lender mentioned above, you can also avail the benefits of pre-approved offers.

These pre-approved offers streamline the loan availing process by making it quick and hassle-free. Furthermore, they offer numerous innovative and industry-first features. 

Udyog Aadhaar registration process online 

You must have your Aadhaar information at hand when you register your business under the Udyog program.

Follow these steps for free registration:

  1. Log on to the official website at https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx
  2. Enter your Aadhaar card details in the labelled fields. 
  3. Validate the details to generate an OTP. 
  4. Enter the OTP received on your registered mobile number.
  5. You will now be redirected to the Udyog Aadhaar application form, upon successful verification.
  6. Fill in the form with the appropriate details.
  7. Scroll to the bottom of the page and click ‘Submit.’
  8. You will receive another OTP which is required in the final verification process.
  9. Enter the OTP and click on ‘Final Submit.’

With this information in hand, you are aware of everything that you need to know of what is Udyog Aadhaar and its application procedure. The motive behind launching this facility is to offer maximum benefits to MSMEs in India. Along with initiatives such as Start-up India, CLSS, etc., the government aims to holistically enhance the vital MSME sector of the nation.

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