Now business owners can register their business under micro, small and medium enterprises (MSME) through a simplified procedural format with the help of the Udyog Aadhaar scheme. Medium and small businesses can enjoy a wide range of benefits by registering their business via Udyog Aadhaar Memorandum (UAM).
What is Udyog Aadhar?
Udyog Aadhaar is a twelve-digit Unique Identification Number (UIM) issued by the Ministry of Micro, Small, Medium Enterprises, Government of India, for MSMEs with the objective of promoting small and medium industries by simplifying the procedure that business owners undertake to register their business under MSMEs (Micro, Small and Medium Enterprises). The Unique Identification Number is provided along with a recognition certificate.
Features & Benefits of Udyog Aadhaar
Ministry of MSME introduced Udyog Aadhaar with the aim to protect small and medium industries and assist them in growth and development. After obtaining Udyog Aadhaar, you can enjoy numerous benefits.
Salient features of Udyog Aadhaar
- Registration is online and user-friendly
- Udyog Aadhaar Memorandum can be filed on a self-declaration basis
- No documentation required
- No fee for filing
- More than one Udyog Aadhaar can be filed with the same Aadhaar number
Benefits of Udyog Aadhaar
- 50% fee reduction for filing patents and trademarks
- Credit guarantee scheme
- Exemption under the direct tax laws
- Excise exemption
- Protection from delayed payments
- Unsecured loan with lower interest rates
- Financial assistance from the Government of India for participation in foreign business exposure
- Octroi benefits
- Discount in electricity bills
- Exemption for application for government tenders
- Subsidy to increase the company’s revenue
Udyog Aadhaar Eligibility Criteria
The following enterprises engaged in manufacturing and service activities are eligible to get Udyog Aadhaar based on the amount of investment in the business.
Investment of up to Rs. 25 lakhs in plant and machinery
Investment of up to Rs. 10 lakhs equipment
Investment of up to Rs. 5 Cr in plant and machinery
Investment of up to Rs. 2 Cr in equipment
Investment of up to Rs. 10 Cr in plant and machinery
Investment of up to Rs. 5 Cr investment in equipment
Udyog Aadhaar free registration process
Udyog Aadhaar online registration is for individuals who have an enterprise and Aadhaar Card, too. Individuals who don’t have Aadhaar number can file for UAM with the General Manager of the concerned District Industries Centre (DIC). The registration process of Udyog Aadhaar is quite simple and straightforward. Here is a complete guide for registering under MSME to get Udyog Aadhaar.
- Step 1: Visit the official website of Udyog Aadhaar to enrol your business.
- Step 2: Enter your personal information like the name of the owner and 12-digit Aadhaar number. Click on ‘Validate & Generate OTP’. OTP will be sent to your mobile number registered with UIDAI.
- Step 3: Enter the OTP and then select the social category (General, Scheduled Caste, Scheduled Tribe or Other Backward Castes (OBC)).
- Step 4: Now fill the name of your enterprise by which your enterprise is known to the customers/ public. If you have more than one entity or enterprise, each one can be registered for a separate Udyog Aadhaar with the same Aadhaar number. You can register them as Enterprise 1 and Enterprise 2 etc. Please select the appropriate type of organization for your enterprise.
- Step 5: Now fill the complete postal address of your company including state, district, PIN number, email ID and mobile number.
- Step 6: Provide the date of commencement i.e. the date on which your business entity started the operation. If your company has been issued a valid EM-I/II by the concerned GM (DIC) as per the MSMED Act 2006, mention the information in the appropriate field.
- Step 7: Enter the bank account number along with IFS code of the bank’s branch where you have an account.
- Step 8: Mention the activity i.e. either ‘Manufacturing’ or ‘Service’ for Udyog Aadhaar. If your company is engaged in both activities, mention the major activity. For example, if 80% of the total are manufacturing and 20% service, then mention ‘Manufacturing’.
- Step 9: Enter the total number of people employed who are paid salary/ wage by your enterprise.
- Step 10: Mention the total amount of money (in lakh) invested in your business.
- Step 11: Select district industry centre (DIC) from the provided drop-down list DICs in the district. If there is only one DIC in the district, the system will automatically register you in the same DIC.
- Step 12: Accept the declaration and click on the Submit button to generate OTP which will be sent to your email address mentioned for registration.
- Step 13: Enter OTP sent to your mobile number (linked with Aadhaar) the second time.
- Step 14: At last, you will receive an acknowledgement number.
Documents Required for Udyog Aadhar
You need to submit a few documents for completing the registration process to obtain Udyog Aadhaar for your enterprise.
- Aadhaar card of the business owner (with name and Aadhaar number)
- Social category
- Proof of social category (SC, ST and OBC)
- Name of your organization or enterprise
- Previous registration details of your enterprise
- Type of enterprise or organization
- Current address proof
- PAN number and account details
- National Industrial Classification (NIC) Code
- The total number of workers employed by the organization
- Current activities of your firm
- Email ID and mobile number of the entrepreneur
- The total investment made in the organization by the entrepreneur
How to Edit Udyog Aadhaar Details?
If you already have your Udyog Aadhaar number but there are some mistakes in it, there is a simple and straightforward way to update the information. The ministry of MSME added a new provision that allows applicants to edit their information on the Udyog Aadhaar. Take the following steps to edit or update your information.
- Step 1: Visit the official website of Udyog Aadhaar.
- Step 2: Click on ‘Update Udyog Aadhaar’; you will be redirected to the Entrepreneur's Login page.
- Step 3: Enter 12-digit UAM number and the OTP sent to you.
Who should get Udyog Aadhaar?
Every type of business entity including one-man company, proprietorship, partnership firm, manufacturer, producer, limited company, private limited company, limited liability partnership firm, co-operative societies, any association of individuals, retailors, Hindu Undivided Family or any other undertaking should get Udyog Aadhaar.
Your business needs to meet certain eligibility criteria defined in MSMED Act, 2006 to be classified as a medium, small and micro industry. Owners of enterprise and company should check if they can be classified under MSMED Act.
Ques. Have EM-1 and EM-2 been removed?
EM-1 and EM-2 have been replaced by UAM with effect from 18.09.2015. Ministry of MSME launched a new portal to encourage small business owners to file UAM.
Ques. Do multiple registration systems exist after the introduction of UAM?
All other registration systems of MSME may be allowed to exist for the time being to get access to useful legacy data for decision making. But there should be only one system i.e. UAM for the registration of new MSME units.
Ques. How to select NIC code of the activity performed by the enterprise?
You can select the NIC code once the Aadhaar number is validated and major activity is selected. You can select the appropriate NIC code from a three-stage drop-down list available to the users.
Ques. What is the difference between the information sought under EM-1/EM-2 and the new UAM?
UAM was launched to promote ease of doing business for MSMEs. You need lesser information to register in the UAM than EM-1/ EM-2.
Ques. What is the role of Udyog Bandhu in the UAM?
The role of encouraging the creation and growth of enterprise in the States/UT will not change in any way through UAM. Hence the role of Udyog Bandhu will not be affected by UAM.
Ques. What if an enterprise does not have Aadhaar number?
Aadhaar number is compulsory for registration in under UAM. Individuals who don’t have an Aadhaar number can file for UAM with the General Manager of the concerned District Industries Centre (DIC).
Ques. Who can access the data from the UAM portal?
Officials of the State Governments including GM DICs are allowed to have password-protected access to the UAM data of their jurisdiction.
Ques. Does the new system of registration provide NIC code in Hindi and English?
As of now NIC codes are only available in English. In the near future, it may be available in Hindi as well.
Ques. I am an entrepreneur and have a Aadhaar Number. Can I apply for Udyog Aadhar Registration?
Yes, any entrepreneur having an Aadhaar Number can effortlessly apply for Udyog Aadhar free Registration online
Ques. Where Can I practice for MSME Aadhar Udyog Registration?
You can go to the legit internet site of Ministry of Micro, Small & Medium Enterprises for MSME Aadhar Udhyog Registration at https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx
Ques. What is the full form of MSME?
The full form of MSME is Micro, Small and Medium Enterprises
Ques. When become MSME Udhyog Aadhar released?
MSME Udhyog Aadhar become released in September 2015 under (MSMED Act, 2006) so as to sell the micro, small and medium businesses
Ques. Is Aadhar Udhyog Registration freed from cost?
Yes, Aadhar Udhyog Registration is free from cost.