The Ministry of MSME has come out with a free and online Udyog Aadhar registration, which can be filled only by small and medium businesses to obtain Udyog Aadhar registration. Existing businesses with MSME registration or Small Scale Industry registration can also register on the Udyog Aadhar website to obtain Udyog Aadhaar.
Types of MSME’s
The Micro, Small and Medium Enterprises (MSMED) Act, 2006 has categorized the flourishing MSME sector into two kinds, which are briefly described below:
a. Manufacturing Enterprises
These are enterprises engaged in the manufacture or production of goods pertaining to any of the industries specified in the first schedule to the Industries (Development and Regulation) Act, 1951. The manufacturing enterprise is defined in terms of investment in Plant and Machinery.
b. Service Enterprises
These enterprises are engaged in rendering services and are defined in terms of investment in equipment.
Udyog Aadhaar Registration
The online Udyog Aadhaar registration process is created with an aim to encourage online filing of Entrepreneurs Memorandum (also known as MSME registration) for Micro, Small and Medium Enterprises. The online Udyog Aadhaar registration process has simplified the registration process with an online and simple one-page registration form. In the form, the MSME will self certify its existence, bank account, business activity details, employment and ownership details, and other information.
Udyog Aadhaar Memorandum (UAM)
UAM has been notified by the Ministry of MSME under the MSMED (Micro Small and Medium Enterprises Development) Act, 2006 for promoting small and medium-sized businesses. The UAM registration system replaces the filing of EM-1 and EM-2.
The registration form is free of cost and more than one UAM can be filed with the same Aadhaar number. The form can be filled on a self-declaration basis, where the MSME can self-certify its existence, bank account details, Aadhaar details, and other required basic information. The UAM registration can be done using the online by using the portal (http://udyogaadhaar.gov.in) from any part of the country. Additionally, mobile access is also given to the UA portal.
Benefits of Udyog Aadhaar
There are several benefits of registering with Udyog Aadhaar. Some of the benefits, that registered businesses receive are:
- Credit Guarantee scheme
- Excise exemption
- Loan without collateral guarantee
- Government subsidies
- Easier sanction of bank loans at lower interest rates
- Interest on Delayed Payments Act which is thrice of the rate stipulated by the RBI
- Other benefits like opportunities to participate in exhibitions abroad
Online Udyog Aadhaar Registration
Udyog Aadhar registration can be completed online at no cost. The following are the details and documents required for the registration of Udyog Aadhaar:
- Aadhaar Number– 12 digit Aadhaar number issued to the applicant.
- Name of Owner– The applicant name as mentioned on the Aadhaar Card issued by UIDAI.
- Social Category – Applicants Caste: General / Scheduled Caste / Scheduled Tribe / Other Backward Castes. The proof of belonging to SC, ST or OBC may be asked by the appropriate authority, if and when required.
- Name of Enterprise– Name of the legal entity to conduct business. One applicant can have more than one enterprises doing business and each one can be registered for a separate Udyog Aadhaar and with the same Aadhaar Number.
- Type of Organization– Type of Business Entity or Legal Entity.
- Partnership Firm
- Hindu Undivided Family
- Private Limited Company
- Public Limited Company
- Self Help Group
- Others (Limited Liability Partnership)
- Postal Address– Address of the business including mobile and email address.
- Date of Commencement– The date on which businesses was started.
- Previous Registration Details– Details of previous MSME registration, if applicable should be entered here.
- Bank Details– Details of bank account of the company including IFSC Code and Bank Account number.
- Major Activity– Major area of activity of the business – manufacturing or service.
- NIC Code– The appropriate NIC Code should be entered from the National Industrial Classification (NIC) handbook.
- No. of employees employed– The total number of people employed in the business.
- Investment in Plant & Machinery / Equipment– Amount of money invested in terms of machinery and equipment by the business.
- DIC– Details of the District Industry Center nearest to the business, if required.
Udyog Aadhaar Registration Process
The following are the steps involved in the registration process:
Step 1: Visit the Udyog Aadhaar website (http://udyogaadhaar.gov.in)
Step 2: Enter the Aadhaar number and other related details, mentioned above, associated with MSME. Further to this, select the option ‘Validate and Generate OTP’(One Time Password)
Step 3: Enter the OTP received. If this is not sent, then apply for linking your mobile number with Aadhaar.
Step 4: Enter owner and business details on the registration page, including the bank details, NIC and DIC codes.
Step 5: After submitting all the details, re-check the details filled and click on the Submit button.
Verify the OTP number, generated by the registered number, with Captcha code required.
Step 6: An acknowledgment number will be generated and e-mailed to the applicant, which should be noted for future references.