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Aadhaar not mandatory to register new business, says minister

Aadhaar_logoThe government today said Aadhaar number is not mandatory for entrepreneurs to register a new business.

“We have started registration of businesses online. There were reports that Aadhaar number was mandatory for registration of new businesses. Today I want to clarify that Aadhaar number is not mandatory,” MSME Minister Kalraj Mishra said at an event organised by Centre for Responsible Business.

In order to simplify the registration procedure for entrepreneurs and promote ease of doing business, the MSME ministry in September issued a new single-page registration form, called Udyog Aadhaar, to be filled online by all micro, small and medium enterprises (MSMEs).

The Udyog Aadhaar Memorandum is universal. Over 48,000 entrepreneurs have registered online so far, and the number is rising, he added.

Stating that the government has taken several measures to promote micro and small businesses, Mishra said a notification has been issued for revival of micro and small business units that have become non-performing assets (NPAs).

“If any unit feels that it is on the verge to be an NPA or has become NPA, such units can apply before banks. Banks will set up a committee to take corrective action plan. A unit, which is genuinely an NPA, will get an opportunity,” the minister said.

Besides, he said that government has made it mandatory for PSUs to procure at least 20 per cent of their annual purchases from MSEs from April 1, 2015.

Speaking about sustainability standards for MSME sectors, Railway Minister Suresh Prabhu said, “In Indian context, we must make efforts to put in place standards for MSME. However, we need to keep in mind the standards meant for Fortune 500 companies cannot be imposed on MSME. Similarly, Fortune 500 companies cannot be the following standards of MSME.”

At a global level, he said the country should not lose market access by coming out with standards that become non- tariff barriers, he said.

Prabhu also noted that countries should not pick and chose some standards from WTO and some from other environment related protocols. A balance approach should be maintained while framing standards for businesses.

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