As an entrepreneur, there are multiple tasks that need your attention. But you must always prioritise maintaining seamless transactions to build credibility with clients and suppliers. The Indian government has introduced several initiatives to facilitate this and support micro, small, and medium enterprises (MSME). One such initiative is Udyog Aadhaar, a Unique Identification Number (UIN) for the small business sector.
It serves as a business registration certificate that facilitates credibility and trustworthiness among customers and suppliers. It helps you unlock exclusive government subsidies, gain easy access to loans, and even open a current account to improve your financial management. Today, many banks accept Udyog Aadhaar as a valid document for opening a current bank account.
A current account helps businesses manage transactions, receive payments, and pay bills, along with additional benefits such as overdraft facilities, cheque books, and online banking services. And Udyog Aadhaar can make it happen for small businesses to avail all these facilities. Here are the details of how you can use Udyog Aadhaar to open a current account and its benefits for your business.
Documents required to open a current account with Udyog Aadhaar
You will need to provide some basic documents such as your Aadhaar card, PAN card, business registration documents, business address, and business existence proof. You may also need to provide a copy of your Udyog Aadhaar registration certificate.
Note that the specific current account documents required may vary depending on the bank you choose. So, it is always advisable to contact your bank beforehand to get all details about documents and processes. You can even check their website to obtain information about the eligibility, fees, documents, and facilities offered.
Steps to open a current account with Udyog Aadhaar
- To open a current account online through Udyog Aadhaar, you must first choose a bank that offers such services.
- Now visit the website of the bank.
- Click on the link that provides information on opening a current account for MSME.
- Enter your Unique Identification Number (if asked) and fill out your personal details and business information.
- Upload the documents required to open a current account.
- Wait for the bank to verify your details and documents. They can call you for additional information or formalities.
- Once your application is verified and approved, you will receive your account details. After that, you can start operating your business current account and enjoy its benefits.
Benefits of Udyog Aadhaar for businesses
An Udyog Aadhaar certificate helps small businesses not only streamline their operations but also get access to different benefits such as:
- Collateral-free loans
- Reservations for manufacturing sector
- Special advantages in international trade fairs
- Access to government subsidies
- Simplified licence, approval, and registration process
- Exemption from direct taxes
- Protection against delayed payments
- Reduced interest rates from banks
- Subsidies for barcode registration
- Discounts on electricity bills
- Excise exemption scheme
Conclusion
Udyog Aadhaar helps small businesses easily open and maintain current accounts with banks. This makes it easier for them to conduct their daily transactions, as well as use different financial services and facilities. Most importantly, this certificate gives business access to many government schemes and benefits, thus, reducing their financial burden.
Therefore, it is wise for businesses to leverage the advantages of Udyog Aadhaar and open an online current account to boost their financial operations and achieve greater efficiency.