To make it easier for owners of informal micro businesses to register on its digital platform and gain access to priority sector lending, the Central Government has announced that Aadhaar authentication for Micro Small and Medium Enterprises (MSMEs) will be performed on a voluntary basis using the Yes/No authentication facility.
The Central Government was given the authority to request entities for Aadhaar authentication under Rule 3 of the Aadhaar Authentication for Good Governance (Social Welfare, Innovation, Knowledge) Rules, 2020 in the interest of good governance, preventing the loss of public funds, promoting resident comfort, and enabling better access to services for them, for the purposes outlined in it.
Additionally, the Ministry of Micro, Small, and Medium Enterprises submitted a proposal to the Central Government in accordance with Rule 4 of the Aadhaar Authentication Rules, and the Central Government authorised the Ministry of Micro, Small, and Medium Enterprises to carry out Aadhaar authentication for the purposes specified therein in a communication dated March 28, 2023.
The notification came into force on May 22, 2023.
Udyog Aadhaar is a unique identification number provided to Micro, Small, and Medium Enterprises (MSMEs) in India. It simplifies the registration process for MSMEs and provides them with a unique identification number. Udyog aadhaar authentication is mandatory for Udayam Registration.
The Udyam Registration is an online registration process introduced by the Ministry of Micro, Small, and Medium Enterprises for the recognition and facilitation of MSMEs. It is for a lifetime. Also, Aadhaar-based digital signatures are also used in MSME-related transactions.
Micro, Small, and Medium Enterprises are important to economies all across the world. They support innovation, job creation, and overall economic expansion. The Government often provides an assortment of incentives, supports, and regulations to encourage and fortify the MSME sector since they understand how important it is to the economy.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
