The State Governments are responsible for the promotion and development of MSMEs. They have to make sure that they do a decent job since it works in favour of their state-run economies. The Government of India supplements the efforts of the State Governments through various initiatives.
They created the Udyog Aadhar about five years back, which was a number provided to businesses to show that they were registered with the right departments. Additionally, the document could be used for a lot of the other processes, paperwork and procedures as well.
Udyog Aadhaar is a twelve-digit Unique Identification Number provided by the Ministry of Micro, Small and Medium Enterprises, Government of India for small and medium enterprises, beginning in September 2015. It was referred to as the Aadhaar for Business.
The scheme was not very popular when it came out, since there wasn’t a lot done to brand it well, however, as of July 2018, more than 48 lakh Indian MSMEs registered under Udyog Aadhaar. There are multiple benefits of going through with the scheme, but the most important has to be that it is easy to apply. Companies and businesses have to get through a basic one-page form, and they do not have to provide documents if they are getting through the Udyog Aadhaar scheme. At the time of going through the documentation process, they would be asked to provide supporting documents if something doesn’t check out properly.
When it comes to running a company, business, or any shop and labour organization, these are some of the benefits that they receive through the scheme
All of these benefits would significantly assist smaller companies since giving them enough of an advantage when they are trying to catch up with the larger ones. Additionally, the Government is working on encouraging a lot more businesses to start operating so they can benefit, especially during the pandemic. The changes that they are looking for would be a major help in assisting the economy while a lot of other companies and shutting down with the changes that they are making.
Depending on the size and scale of the establishment, the following can apply for the scheme
Udyog Aadhaar is different from the Shop and Establishment registration since it is provided by the Ministry of Micro, Small and Medium Enterprises. The Shop and Establishment Act, on the other hand, is provided by the municipality of the city. MSME is a centralised registration, while the Shop and Establishment's is a local registration. The process of registration is also different for each of them. Further, for an entity, only a single Udyog Aadhaar registration is to be taken.