The most important requirements when running businesses and companies are the correct and relevant paperwork.
Businesses and companies that are functioning without proper paperwork leave themselves in the line of fire when it comes to several processes, especially rules and regulations, put in place for their proper functioning. All businesses with a geographical location have to register under the Shop Act, done through the Shops and Establishments act.
The primary purpose is to make sure that the management or the owners within a company or establishment treat everyone fairly. There are several basic rules that the people running the companies have to follow to prove that they treat the people working there, fairly.
Depending on the type of business an owner is planning on running, whether a private company, partnership firm or anything else, there are various rules that they have to follow. There are instances where these rules change the type of registration that they have to follow through.
To increase the number of registered companies within the country, the Government decided to push out the Udyog Aadhar scheme, and they took it to the internet allowing people to register their companies without having to leave their homes or travel to the office to complete the registration process.
The previous process needed the applicants to gather and fill out the form and travel to the office to submit them. There were instances where all the supporting documents were not available, and they had to reschedule for another meeting on a different day, which was quite inconvenient and took a lot of time.
Some of the documents that you need to get through the registration process for a Shop Act are
- Pan Card
- Aadhar Card
- Voter ID Card
- Driving License
- Ration Card
- Electricity and Water Bill
- Partnership Deed
- License and permits required by particular shops, which depend on the work that they are doing
- FSSAI License in case the applicant is a Food Business Operator
The Udyog Aadhar card is a free registration process that does not need a lot of documents to get through. Furthermore, the applicant has to fill out one application form, and they can take the process forward. To increase the number of companies that get through the registration process, the Government made the process easier and allowed people to get through it online. They can either fill out the details online or even download the forms and submit them to the office depending on their preference.
Although the Government started the Udyog Aadhar in 2015 and it did not get a lot of registrations, three years later by 2018, there were more than 48 lac small companies that went through the process and were availing a lot of the Government schemes and benefits.
Other than informing the applicants about the schemes, the business eService platform also tells them the rules and paperwork they have to follow if they are planning on running their company. They receive information about the various applications they have to submit and the documents that they should have ready depending on their stage of running a company.
Although the number of registrations seems high, more than half the small and medium scale companies in the country did not register themselves under the scheme. The Government started promoting the same scheme again in 2020 since India, like most parts of the world, found itself in the middle of a pandemic and companies were shutting down and a lot of people looking for work and it made sense that they begin pushing their business idea.
A lot of people across the country started working on their talents and leveraging them to make ends meet. Additionally, there were several benefits that companies could avail of if they went through the registration process, which would assist them when it came to keeping up with their competition.
Furthermore, they also pay reduced tax since they are starting, along with receiving the option to skip on some of the registration processes which they can delay until a later time.