Aadhar Compulsory For Startup Registration

The central government has made it mandatory for startup companies to hold aadhar card for MSME registrations. The MSME registration or Udyog Aadhar registration is required for availing certain incentives offered by the government for the growth of the small and medium scale enterprises. This move comes when the Supreme Court has already made Aadhaar voluntary and not compulsory. Experts feel that this order is a violation of the Supreme Court order concerning aadhar.

Thus the central government order on making Aadhar compulsory for startup registration can be bought under contempt of court. The government has made it mandatory to link Aadhar in the online form.

It is clear discrimination for people who do not hold an Aadhar card. Thus startup owners can go for Udyog Aadhar registration only if they possess a valid Aadhar number. The Udyog Aadhar registration is required for availing several benefits offered by the Central government to startup enterprises. Thus it is true that without Aadhar startup companies cannot avail the benefits of MSME incentives provided by the government.

It is not fair in making Aadhar compulsory for startup registration, and thus industry representatives have decided to take up the matter for internal discussions. State governments have also raised their voice on the need for Aaadhar for registering with MSME. It is said that it would be easy for startups to allow using PAN Cards or other id proofs for registering with Udyog Aadhar.

Thus steps should be taken to accept other id proofs for Startup registration.

Read More : Things To Know About Offline Income Tax Return Filing