Small and medium-sized businesses play a significant role in the Indian economy. In order to provide support to these businesses, the Indian government came up with the Udyog Aadhaar Memorandum (UAM) in 2015. UAM is a unique identification number given to small businesses to facilitate easy access to credit and other government schemes. It is also used for registering any dispute related to the business with the government.
Recently, the government has decided to extend the validity of UAM till March 31, 2023. This move has brought a wave of relief for small business owners who have been struggling to get their Udyog Aadhaar status updated due to several reasons.
Why was the extension of UAM validity needed?
The previous deadline for updating the UAM was March 31, 2021. However, due to the pandemic, there were several issues faced by small businesses in updating their UAM. This resulted in a delay in the update and discontinuation of the Udyog Aadhar status of some businesses. The extension of the validity of UAM will give a chance for these businesses to update their status and continue to avail the benefits provided by the government.
The Validity of Udyam Aadhaar
Udyam Aadhaar is a new and improved version of the Udyog Aadhaar. It was introduced in November 2020 to make the registration process more streamlined. It is mandatory for all existing businesses registered under Udyog Aadhaar to update their details to Udyam Aadhaar. The deadline for updating the registration was March 31, 2021. Businesses that fail to update their registration before the deadline will lose their Udyog Aadhar status and all the benefits associated with it.
The government has extended the deadline for updating the Udyam Aadhaar registration till September 30, 2021. This will give small business owners some relief as they were struggling to update their details in time.
Benefits of Udyog Aadhaar/ Udyam Aadhaar
The Udyog Aadhaar and Udyam Aadhaar registration process are simplified and hassle-free. The process is entirely online, and the business owner can complete it from anywhere and at any time. The registration is free of cost, and the business owner only needs to provide basic details such as business name, type of activity, and PAN details.
Once the business is registered, it can benefit from a range of government schemes such as credit guarantee schemes, subsidies, and tax exemptions. The business can also participate in government tenders, apply for a loan, and avail various benefits under the Micro, Small, and Medium Enterprises (MSME) Act. Further, availing any benefits provided by the government requires that the business owner must have a Udyog Aadhaar/Udyam Aadhaar registration.
Steps to get Udyog Aadhaar/Udyam Aadhaar
The process for obtaining a Udyog Aadhaar/ Udyam Aadhaar is straightforward and quick. Follow these steps to get your registration done.
– Go to the official website of the Ministry of Micro, Small and Medium Enterprises (MSME): udyogaadhaar.gov.in.
– Fill in the necessary details such as Aadhaar number, name, and gender.
– Provide the business details such as PAN number, business name, and type of activity.
– Select the location of the business. Provide contact details, such as mobile number and email ID.
– The business owner must also provide the bank account number and IFSC code of the operating account used for the enterprise.
Once the registration is complete, a unique Udyog Aadhaar/Udyam Aadhaar number is generated. This number is used for all government schemes, credit facilities and other benefits associated with MSMEs.
Small and medium businesses are the backbone of any economy. The Indian government is taking significant steps to ensure that these businesses keep running during hard times as well. The extension of UAM validity and the deadline for updating Udyam Aadhaar will provide much-needed support and relief to small business owners.
Udyog Aadhaar and Udyam Aadhaar registrations also offer several benefits to these businesses. Business owners must ensure that they are registered under Udyog Aadhaar/Udyam Aadhaar registrations to take advantage of government schemes efficiently.
In summary, the extension of the UAM validity until March 31, 2023, and the deadline to update Udyam Aadhaar registration until September 30, 2021, will help small businesses continue to access the benefits provided by the government. The process to get Udyog Aadhaar/Udyam Aadhaar is straightforward, and all small business owners must complete it at the earliest.