According to a report presented by NASSCOM, India became the third-largest startup ecosystem in the world, with a 108% surge in terms of total funding from $2 billion in 2017 to about $4.2 billion in 2018.
The fiscal year 2018 ended with over 1200 startups whereas another 1300 startups were added by the end of October.
These businesses generated around 60,000 direct jobs and an average of 1.5 lakh indirect jobs catering to huge employment opportunities in India.
The boost in the number of startups and growth of businesses is because of various government-backed schemes.
Such schemes help individuals grow their business in the right direction by offering them much needed assistance and financial guidance.
Udyog Aadhaar registration is one such initial step that helps businesses register under the Ministry of Micro, Small, and Medium Enterprises hassle-free.
What is Udyog Aadhaar scheme?
MSMEs can register their company using Aadhaar Card number and acquire a recognition certificate along with a 12-digit Aadhaar number required to prove their certification under MSME.
Moreover, entrepreneurs need to provide their Aadhaar number for the registration purpose and declare if the company is a partnership firm, private limited company, limited company, or a sole proprietorship.
Subsequently, entrepreneurs need to follow the below-mentioned process for Udyog Aadhaar registration.
- Navigate to the official website of Udyog Aadhaar and input name and Aadhaar number.
- After the information is provided, they need to click on ‘Validate & Generate OTP’.
- Fill up details about the enterprise.
- Provide information about the starting date of enterprise, previous registration details, etc.
- Fill up bank details, classification of business, total investment, etc. before accepting the letter of declaration.
Udyog Aadhaar Benefits
MSMEs registered under Udyog Aadhaar can avail:
- Exemption under direct tax laws.
- Concession in utility bills.
- Reimbursement or discounted charges for filling patent and trademark.
- Low-interest loans and advances without a guarantee from various financial institutions.
Entrepreneurs can avoid burnout while running a small business by making use of such government schemes that offer them multiple benefits.
Further, they can make use of several government schemes to ensure they expand their business in 2020.
Government-supported schemes to check for
- Prime Minister Employment Generation Programme (PMEGP)
Prime Minister Employment Generation Programme is an employment generation programme initiated by the Indian government under Khadi and Village Industries Commission (KVIC). The objective of the program is to generate employment opportunities in both rural and urban areas of the country.
Only new projects under micro-enterprises sector can avail the benefits of the scheme. The scheme offers opportunities to prospective businesses to boost the employment options by providing 90% of the fund as part of a business loan (Rs.25 lakh for the manufacturing sector & Rs.10 lakh for the services sector).
The beneficiary from the general category can avail a subsidy of 15% in case they belong to an urban area and a subsidy of 25% if they belong from a rural area.
Further, non-banking financial companies like Bajaj Finserv makes the loan application procedure simpler by facilitating borrowers with pre-approved offers on loan.
- Development of Khadi, Village and Coir Industries
Various skill and technology upgradation schemes come under this programme to help artisans and entrepreneurs develop expertise while making profits in their business.
They are provided with equipment, marketing strategy, equipment, etc. to make sure their business flourish. Now, business owners can be financially fit in the new financial year by registering their enterprise under these schemes.
- Entrepreneurship and skill Development Programme
Government has initiated several skill development programs for entrepreneurs and aspirant entrepreneurs to help them in their business venture.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Ministry of Skill Development & Entrepreneurship (MSDE) are a few government-funded schemes that educate and trains individuals in various industry skills.
Businesses can make use of the training programs to strengthen their skills and implement them in real life for the expansion of a business.
With the Indian government helping businesses in multiple ways, enterprises have more opportunities for expanding their business in the fiscal year 2020.
And funding isn’t a matter of concern anymore with the availability of several government business loan schemes in India. Eligible enterprises can avail loans at a subsidised rate and other financial benefits as needed.
Nonetheless, enterprises first should go through the Udyog Aadhaar registration process to get their business registered under the ministry of MSME that entitles them for several benefits.