Udyog Aadhaar and its 25 Benefits

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Small and medium enterprises are able to register themselves as MSME entities by using the Udyog Aadhaar (also known as Aadhaar for Business). It is a 12-digit government identification number.

The proprietor of a sole proprietorship does not receive official recognition for his business as opposed to other business entities. Sole proprietors who do not have an official government recognition should strongly consider obtaining a Udyog Aadhaar, which gives a sole proprietor a unique identity and enables him to register the business with the Indian government and validate its existence.

Most business entities have official recognition and can obtain Udyog Aadhaar and other MSME benefits as outlined below.

Benefits of Udyog Aadhaar

Your business can benefit greatly by registering and receiving a Udyog Aadhaar.

This is a list of the benefits derived from various schemes offered by the Ministry of MSME with regard to protecting, growing, and developing small enterprises. These benefits can also be obtained by the holders of Udyog Aadhaar.

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

The above are a few of the benefits that an Udyog Aadhaar holder can enjoy. Additional benefits can also be enjoyed by those who hold an Udyog Aadhaar as new schemes are introduced.

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