The Government is working on getting more businesses to register to assist them through various schemes and benefits that make starting their business fun and more beneficial. They are encouraging more people to begin their ventures so they can use them to build up the economy, especially in a time when the pandemic has been quite challenging. A large number of people throughout India are losing their jobs, companies are shutting down, people are sick, and everything seems to be moving from bad to worse. The Government learnt that they have a chance at saving the economy through more companies registering themselves and the movement of money. There are multiple challenges that people face when it comes to registration processes for companies, with the most significant one being the process is not easy to get through. Furthermore, it is quite inconvenient to get through as well with applicants having to go to the office and begin the registration process there. They have to carry all their documents and make sure that they have no forgotten anything otherwise they wud have to reschedule their meeting for a different date.
Udyog Aadhaar Memorandum (UAM) is a single-page registration form used by MSMEs to complete the registration process through a quick and easy process. They self-certify their entity’s existence, and along with their registration, provide bank details, owner’s identification and a little more information depending on the requirements. Post submitting all the information, they generate the Udyog Aadhar Acknowledgement and mail it to the email address provided in the UAM, which contains the unique Udyog Aadhaar Number (UAN). Since the Udyog Aadhaar Memorandum is a self-declaration form, applicants do not need to submit supporting documents along with it. However, central or state authorities can request documentation as proof of the information, but the information they ask for is straightforward and encompasses information that they would already have.
Here is the comprehensive list of the documents they have to get through for the registration:
- Personal Aadhaar number
- Name of owner
- Category of applicant
- Name of business
- Type of organisation
- Bank details
- Key activity
- National Industrial Classification code
- Number of persons employed
- Details of District Industry Centre (DIC)
- Date of commencement
Some of the benefits of coordinating through this scheme are
- Access to loans without guarantee and at subsidised rates
- Access to financial support for participating in foreign expos
- Access to exclusive government subsidies
- Ability to apply for micro-business loans and other related schemes
- Easier access to government provisions for businesses
Additionally, the entire process is online, allowing applicants to coordinate the registration through the internet. On the off chance that they prefer the office, they can still download the forms and submit them to the authorities.
Getting a Udyog Aadhar card makes the application process for various other registration processes that much simpler since it provides information about the company, and they can use it for those verification processes. With the entire registration online, the process was a lot more convenient. If the establishment is using a specific location, it has to be registered under another mandatory process called the Shops and Establishment Act, which legally allows businesses and small companies to work in a particular place. The licence is needed when coordinating other legal processes and documentation that are necessary for the business.
The Shop Act licence is mainly put in place to look after the people working within the company, business or establishment. The employees are looked after and protected from exploitation through a series of inspections and other checks. If there are any issues within the company, there can be complaints made and the business would have to pay fines and penalties.
List of Various documents is required to obtain a Shop Act are:
- Aadhar and PAN card
- Address proof which can be the electricity bill or NOC from an owner
- Application letter in the format to the Municipal Corporation of the area
- Authority Letter for Business
- Form-A which is an application for Registration within 30 days of starting any work to the inspector of the area
- Government Prescribed Fees for a partnership Firm, along with the Partnership Deed
- Pan Card of the Partnership Firm
- ID and address proof of the people running the company