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.