All businesses run in the country, no matter the type, have to make sure they register themselves under the shops and establishments Act. They would receive the Shop Act Licence which they can use for several registration processes that will come their way. The Shop Act Licence makes sure employees working within the company are protected and not mistreated by the management. Most of the rights, such as proper timings, leave of absence, and payments have to be met on time for a business to consider itself functional. There can be fines and penalties if companies do not meet the rules, or there are issues with the work done.
After completing the registration process, some inspections are conducted throughout the year by inspectors, making sure that establishments are maintaining the rules and not pretending that they meet the requirements, for the sake of the inspection. Furthermore, the Government has not created a new business eService platform where they have added all the application forms and other information for companies that are getting through the registration process to make it a lot easier. Since most of the people starting their businesses would not be sure of the process they have to follow, they mention them in great detail, including all the other information online, where they can refer and execute.
Other than the application and renewal forms, the platform also has information on the number of registrations and rules a company should get through, depending on their circumstances when they are registering for their application. It has lists of the supporting document available and information about various schemes that people can apply for through the Government when coordinating the process with the general public. Two of the primary registration processes mentioned on the platform are the registrations for the Shop Act Licence through the Shops and Establishments Act and the registration for the Udyog Aadhar scheme.
The Udyog Aadhar scheme started in 2015 but was not one of those schemes used by everyone. It was rarely used and did not get the traction that the Government intended for it. However, there was an increase in the number of people using it in the years that followed, and by 2018,
the Government received more than 48 lac registrations of SMEs. Although the number seems high, for a country like India, there are a lot more than the same number of businesses that have not registered yet, and the Government decided to begin pushing registrations again to see if it would help.
Finally, they took the application process online to make it a lot more convenient for the applicants to get through and again they saw a massive spike in the number of registrations that were getting through the process. For applicants that were having issues registering their companies since they did not have all their documentation, especially since they were smaller companies, getting through the Udyog Aadhar was quite simple without a lot of paperwork to get through the process. The documentation for the scheme is quite simple, and some of the primary certificates and requirements are:
Personal Aadhaar number Name of owner
Category of applicant Name of business Type of organisation Bank details
Key activities that the company work on National Industrial Classification code
Number of persons working within the establishment Details of District Industry Centre (DIC)
Date of commencement
Applicants would then receive a 14 digit number that would be their Udyog number, and they can use it when they are applying for various schemes. Furthermore, they receive information on several schemes, especially when they create new ones for their company. They would also receive discounts when dealing with other processes relating to their business, such as utility bills and varying tax brackets that they have to coordinate.
All the information about the process is available online, and business owners can educate themselves on the process. Furthermore, some agencies would be interested in working with the business and coordinating the process since they would have done it in the past and would be able to help others get through the process.