Government makes Adhaar number compulsory for registering new business

Zee Media Bureau

New Delhi: The aspiring entrepreneurs will have to compulsorily register with the Unique Identification Authority of India and get Aadhaar number if they would like to register a new business in India.

The Supreme Court had ruled in August that the Aadhaar unique identity system will not be compulsory for Indian citizens to benefit from government's social welfare schemes.

According to the Economic Times report, aspiring startups can't 'fill' a new online form for registering new enterprises introduced last month unless the Aadhaar credentials of their promoters (sought in the first column of the form) are validated online.

The report adds that 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 of Finanace Ministry which was set up to examine the financial architecture for the micro, small and medium enterprises (MSME) sector had recommended to universalize Aaadhar for MSMEs