Udyog Aadhaar was introduced in 2015 to replace the MSME or SSI registration process. Through Udyog Aadhaar, companies receive legitimacy in the purview of the government and are entitled to receive several benefits, like –
- Easy availability of loans.
- Subsidised rates of interest on loans.
- Government subsidies.
- Financial assistance at international expos.
- Minimal documentation to open current accounts.
- Availability of government-backed micro business loans.
The scheme was launched with an objective to eliminate the hassle that companies face during registration by minimising the documentation process.
Under the MSME or SSI registration process, companies had to register with an Entrepreneurship Memorandum-I and Entrepreneurship Memorandum-II, which required extensive efforts and time to draft.
In contrast, companies only need to draft a Udyog Aadhaar Memorandum, which is comparatively simpler and time-effective.
A quick look at Udyog Aadhaar –
- The Udyog Aadhaar Number (UAN) is a 12-digit numeric code assigned to MSMEs upon registration.
- 72+ lakh – Registered micro-sized enterprises.
- Around 98 lakh – Registered small-sized enterprises.
- 35,000+ – Registered medium-sized registration.
Udyog Aadhaar aims to develop an environment of active entrepreneurship in India to tackle problems of unemployment and heavy concentration of the population in metropolitan cities.
How to cancel Udyog Aadhaar registration?
While the initiative brings forth several Udyog Aadhaar benefits to the registered enterprises, there might be circumstances that prompt deregistration from the scheme.
Even though Udyog Aadhaar registration process can be done both online and offline, the cancellation process can only be carried out offline.
The following steps enumerate the process behind Udyog Aadhaar cancellation –
- Locate your nearest Udyog Aadhaar registration centre
In most districts, a Udyog Aadhaar centre is located near the District Industrial Centre. You can find the form you need to submit to apply for cancellation through this centre. In case your district does not have a District Industrial Centre, refer to your Udyog Aadhaar registration certificate. You can find the address to your nearest centre at the bottom of that same.
- Draft an application
You need to draft an application to the Udyog Aadhaar Registration Centre on account of deregistration of your business.
It shall mention all the details related to cancellation, which should include – activities terminated from thereon, bank accounts closed post-deregistration, etc.
In addition to these details, you also have to provide a brief and clear explanation behind the reason for the termination of business activities with the registration centre.
- Documentation
There are no specified documents which you need to produce during the closure of your registration. In any event, the centre in-charge might ask for certain documents during deregistration.
Henceforth, it is convenient to carry the documents which had to be furnished during Udyog Aadhaar new registration.
You should carry photocopies of documents listed below –
- Aadhaar of the authorised signatory.
- Bank account numbers and their details which you submitted during registration.
- Acquire an acknowledgement document
In the event you have concluded the deregistration process successfully, ask the in-charge for an acknowledgement note. This document can come in handy later.
Things to take into account before cancellation of Udyog Aadhaar –
- Mention the reason(s) behind the cancellation of registration clearly and briefly. It shall precisely convey the reasons, as approval of your deregistration depends on it to an extent. In case such details are not clear and substantial, your application might be rejected.
- Ensure to terminate all business activities and related bank accounts before applying for deregistration.
- You might also need to draft a declaratory note that mentions that you hereby exempt yourself from all Udyog Aadhaar benefits, which include government-backed business loan schemes.
In case you filed Udyog Aadhaar application form for deregistration on account of reconstitution of your business, you can apply for another registration after it is concluded.
You can avail a business loan to facilitate reconstitution to ascertain adequate monetary assistance for faster completion. There are several benefits of such loans offered by Bajaj Finserv, which can convenience your cause.
Now that you know all about what is Udyog Aadhaar cancellation, ensure to duly follow all the necessary steps before applying for deregistration.