The government of India has made Aadhar card mandatory to register any startup business.
The government of India has made Aadhar card mandatory to register any startup business. The startups cannot fill a new online form for registering new enterprises which was introduced last month unless the Aadhaar credentials of their promoters are validated online.
The ministry for micro, small and medium enterprises had last month notified Udyog Aadhaar after Prime Minister talked about simplifying procedures to start a business with a single-page registration form as per thetechportal.
Commenting about the new one-page form initiative, an official said, A large chunk of enterprises in India are simply not registered due to the cumbersome paperwork involved in the process and, therefore, can’t tap the government schemes for them. The KV Kamath panel on financing the MSME sector, that has been the biggest job creator in recent years, had recommended that the registration should be universalised.
Some state governments had already voiced apprehensions about the need to ask only for entrepreneur’s Aadhar number rather than other identification proofs to register their businesses.
On the ease of starting a business, India ranks 179th. The World Bank report notes that it takes around 27 days to start a business in India, and there are 12 procedures that need to be completed before one can start a business in India.