Udyog Aadhaar: 25 Benefits of Registering Aadhaar for your Business


What is Udyog Aadhaar?

Udyog Aadhaar (also called as Aadhaar for Business) is a unique 12-digit Government identification number provided by the Ministry of MSME for the small and medium enterprises to register themselves as MSME.

Unlike other business entities, a sole proprietor business owner does not have an official recognition of his business. Udyog Aadhaar is highly advisable for Sole Proprietors who dont have an official govt recognition as udyog aadhaar helps a sole proprietor get a unique identity and official registration with the Government of India that validates the existence of his business.

Other types of business entities usually have a official recognition and they can register for Udyog Aadhaar and avail the other benefits offered by MSME as mentioned below

Benefits of Udyog Aadhaar

There are a numerous benefits of registering and getting a Udyog Aadhaar for your business.

Given below, is a list of benefits derived from the various schemes offered by the Ministry of MSME for the Protection, Growth and Development of the small enterprises. The same benefits can also be availed by the Udyog Aadhaar holders and prove to be very advantageous for them.

The benefits are as follows:-

  1. Protection against delay in payment.
  2. Fast resolution of disputes
  3. Collateral Free loans from bank
  4. Exclusive consideration for participating in international trade fair
  5. Octroi benefits
  6. Waiver of Stamp duty and Registration fees
  7. Several Exemption under Direct Tax Laws
  8. Barcode registration subsidy
  9. Subsidy on NSIC Performance and Credit ratings
  10. Counter Guarantee from GoI through CGSTI
  11. Reduced rate of interest from banks
  12. 15% subsidy under CLCSS scheme for technology upgradation
  13. Exemptions while applying for Government tenders
  14. Concession in Electricity Bills
  15. Reimbursement of payment made for obtaining ISO certification
  16. 1% exemption in interest on OD
  17. Increasing eligible loan limit for optimal reasons, from the amount of Rs. 25 lakh to Rs. 50 lakh
  18. Raising the extent of guarantee cover from 75 % to 80 %
  19. Reservation of products for exclusive manufacturing by MSME/SSI
  20. Easier registration and approvals to obtain Licenses
  21. Eligible for IPS subsidy
  22. Preference in allocation of Government tenders
  23. Excise Exemption Scheme
  24. Reduced rate of interest from banks
  25. 50% subsidy for patent registration

Above mentioned are some of the benefits that a Udyog Aadhaar holder can enjoy. Apart from these as and when there are new schemes introduced, the same benefits can also be enjoyed by the Udyog Aadhaar holder.

How to apply for Udyog Aadhaar Registration?

The registration process for obtaining a Udyog Aadhaar is fairly simple. For the registration you do not need to get the form attested by any professional. Also, the Government does not charge any registration fees for it.

You just need to follow the given below steps and you can even do it yourself.

Udyog Aadhar

Udyog Aadhaar- MSME/SSI Online Registration

Step 1: Visit the site- https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx
Step 2: Enter your Individual Aadhaar number . In case of partnership, the Partner applying Udyog Aadhaar shall give his Aadhaar number and in case of company, the Authorized signatory who is applying on behalf of the company shall give his Aadhaar number.
Step 3: Enter the OTP received on the number linked with Aadhaar Card.
Step 4: Fill out the Udyog Aadhaar Form,

  • Aadhaar Number
  • Name of Owner
  • Social Category – Applicant’s Caste
  • Gender
  • Physically Handicapped
  • Name of Enterprise– Name of the legal entity to conduct business. One applicant can have more than one enterprises doing business and each one can be registered for a separate Udyog Aadhaar and with the same Aadhaar Number.
  • Type of Organization– Type of Business entity or Legal Entity.
    1. Proprietorship
    2. Partnership Firm
    3. Hindu Undivided Family
    4. Private Limited Company
    5. Co-Operative
    6. Public Limited Company
    7. Self Help Group
    8. Others (Limited Liability Partnership)
  • PAN Number- Mandatory for LLP, Company and Co-operative Society. Optional for the rest.
  • Location of Plant
  • Official Address– Address of the business including mobile and email address.
  • Date of Commencement– The date on which businesses was started.
  • Previous Registration Details– Details of previous MSME/SSI registration, if applicable should be entered here.
  • Bank Details– Details of bank account of the company including IFSC Code and Bank Account number.
  • Major Activity– Major area of activity of the business – manufacturing or service.
  • NIC Code– The appropriate NIC Code should be entered from the National Industrial Classification (NIC) handbook. You can find it here.
  • Person employed– The total number of people employed in the business.
  • Investment in Plant & Machinery / Equipment– Amount of money invested in terms of machinery and equipment by the business.
  • Details of the District Industry Center nearest to the business

Step 5: Once you have filled out all the details, click on submit.
Step 6: Enter the OTP received on the number linked with Aadhaar.
Step 7: Enter the code on the screen for final submission.

Udyog Aadhaar- Offline Application

Step 1: In case you do not have a Aadhaar Card, apply for the same.
Step 2: Until you receive the Aadhaar Card, the application for Udyog Aadhaar shall be made by the District Industry Center (DIC) or MSME-DI.
Step 3: Submit the following documents to the DIC or MSME-DI

  • Aadhaar Enrollment ID slip or Copy of the request made for Aadhaar enrollment.
  • Any valid address proof.

Step 4: Fill out the physical form.
Step 5: Submit it to the District Industry Center (DIC) or MSME-DI.

After the submission you will get an acknowledgement of the successful submission of the form. After which you will get a Udyog Aadhaar number on a certificate which will be sent to you online. You can also get the Udyog Aadhaar certificate printed.

How to edit or update Udyog Aadhaar Number?

In case, you need to update the details of your existing Udyog Aadhaar number, please follow the below given instructions:

Step 1: Click on the link- https://udyogaadhaar.gov.in/UA/UA_EntrepreneurLogin.aspx
Step 2: Enter your Udyog Aadhaar Number.
Step 3: Enter the verification code and submit.
Step 4: Enter the OTP received on your Aadhaar linked number.
Step 5: Edit the details you want to change and submit.

As you can see, there are a numerous benefits of getting a Udyog Aadhaar for your business, as well as the registration process is extremely simple, such that even without any prior knowledge you can file it yourself.

Karan is CA by Qualification with the rare distinction of being awarded All India Rank 22. He is also the founder of this website and loves to help people with their Tax Queries.