India is a land of young minds that harness great ideas. Currently, the business atmosphere of India is the best in terms of initiating a business. It has also achieved the best of its ranks in the ease of doing business. It has been made possible because of the policies undertaken by the government. The conduct of business has become more accessible, especially in terms of the administrative requirements. One step in this direction is the introduction of the Udyog Aadhar, which is a 12 digit identification number for micro, small and medium enterprises. This number works on the same lines of the Aadhar number provided by UIDAI. The Ministry of these enterprises issues every registered MSM firm this identification number.
How Article 370 Affected SMEs
The rationale behind the Udyog Aadhar is to track the activities of MSM enterprises in the same way as Aadhar tracks for the individuals. With so many phoney enterprises coming into the picture, tracking them has become an ian crucial issue. Apart from this, it has also played a significant role in centralizing all the paperwork. Everything functions through this number only whether it is filled with tax returns or claiming of credits. The fixation of responsibility has become accessible. All the data compiled and stored in a constructive manner is capable of concluding facts.
Process For Online Registration For GST
Registration and issuance of the number
The procedure to apply for the certificate is pretty easy. The interested party needs to fill up the information form available online. The form contains basic information like Aadhar number of the applicant, name, address, PAN details of the applicant. It also contains the details of the business that one is interested in registering for. Apart from that, it also requires bank account details and other verification documents. After filling the form, the next step is to pay the fees required to issue the certificate. After the completion of the application process, processing and verification of the application forms take place. If everything is found to be correct then the certificate is issued. One can get it over mail with the Udyog Aadhar number printed on it.
How To Check Your CIBIL Score Using Your Pan Card
Benefits Of The Udyog Aadhar
One must be wondering about the benefits of going over the whole process. The major benefits of the Udyog Aadhar are as given below:
1. Tax benefits:
The first and foremost benefit for applying is the tax benefit. They can have an exemption from excise duties. They can avail of direct benefits in the field of direct taxes as well.
2. Better finance opportunities:
Through the assurance of this number, they can ensure low guarantee loans or low-interest loans. Banks are more inclined to invest or provide loans to those enterprises with whom they feel secure. The Udyog Aadhar number provided that component of security. Funding can also be done through the Credit Guarantee Trust Fund even without providing collateral.
3. Concessions and subsidies:
Entrepreneurs with the number can have the privilege of different grants and subsidies on account of electricity bill, octroi, exemptions provided in case of government tenders. They are also available in the case of applications of trademarks and patents if any.
4. A platform for solving payment issues:
Udyog Aadhar provides a platform for solving the issues regarding the delayed payment. It also protects, in case a payment default happens.
Apart from these benefits, it helps businesses to get foreign exposure from the Government of India. It also prioritizes firms in getting orders from the Government of India and its allied organizations. In addition to this, the process of application for numerous services is also eased due to centralization.
How To Track GST Registration Status
After a comprehensive evaluation of the purpose and benefits, we can conclude that it is a defining step in the history of the MSM enterprises. Today, the Indian economy might be slowing down. We might be struggling with the growth rate and might not be able to compete with the other major powers of the earth. However, if we are planning to change the equation, MSM is the only way. It is the same as China did decades ago. To promote the growth of the same, ease and centralization of the business and its data is required. This can be achieved by the Udyog Aadhar, an initiative of the Ministry of MSME. With the help of this and a couple of other initiatives, one day we may be able to become one of the strongest economies of the world.
Indifi is a market leader in helping small businesses. If you are also one of them, reach out to us. We will be happy to help.