Udyam – MSME Registration

Udyog Aadhaar

The government of India has introduced the Udyog Aadhaar (UD) Registration process in which you need to fill only 2 kinds of the application form. They are the Entrepreneur Memorandum – 1 and Entrepreneur Memorandum – 2 rather than filling 11 different forms. 

The introduction of the UA has simplified the procedure for the business owner to register their business under MSME. All these business entities are classified based on their investment in plant and machinery and equipment that are as follows:

• Micro Enterprises which spends up to Rs. 25 lakhs in plant and machinery and invests up to Rs. 10 lakhs in equipment.
• Then comes the Small Enterprises which spend up to 5 crores as an investment in plants and machinery and invests up to 2 crores in equipment.
• And at last, we have medium enterprises that invest up to 10 crores in plants and machinery and spend up to 5 crores as an investment in equipment.

 It has changed and improved things for all the small and medium levels of enterprises. It is because of this facility that the government can provide maximum benefits to the medium and small scale industries or businesses in India who can get registered via MSME through their 12 digit Aadhaar number. By registering an MSME via UAM (Udyog Aadhaar Memorandum) you will be liable to enjoy numerous benefits.

There are a set of criteria that an entity, whether it is a Hindu Undivided Family, a Proprietorship, a One- Person Company, a Partnership Form, production company, a limited company, a private limited company, a limited liability partnership, a cooperative or any other association of people or any other undertaking it must fulfill to be classified as a medium, small or micro-enterprises under the MSMED Act, 2006 and get registered via MSME and obtain a Udyog Aadhaar.

UAM (Udyog Aadhaar Memorandum):

UAM is a single-page registration form under which you can self – certify your entity’s existence, bank details, certify the owners Aadhaar details, and other needed details as in MSME Registration. After the submission of the registration form, the Udyog Adhaar acknowledgment will be generated and the UAM containing the unique Udyog Aadhaar number will be sent to you via e-mail on the email ID provided in the UAM. As there is no bondage on filling multiple UAMS using the same Aadhaar number, enterprises can file a different form with the same Aadhaar number if they wish to. Before the Micro, Small and Medium Enterprises Development Act, 2006 came into effect, have filed Entrepreneurship Memorandum – 11, or both have to file the UAM again. There is no need for submitting, supporting documents while submitting the UAM as it is a self – declaration form. However, the central or state government may request for few documents as per the requirements and so on.

Documents required for Udyog Aadhaar Registration: 

The legal documents or applications one requires for Udyog Aadhaar registration are enlisted below:

• A personal Aadhaar number.
• Category of the Applicant. 
• The various types of organization.
• Name of the owner.
• Name of business.
• Your bank details.
• Details of DIC that is the District Industry Centre.
• Key activity.
• The number of employees or staff.
• National Industrial Classification Code.
• Date of commencement.

Procedure for Udyog Aadhaar Registration:

To get your business or industry registered under Udyog Aadhaar you need to open up a website namely https://udyogaadhaar.gov.in/UA/UAM_Rehistration.aspx Go ahead entering your Aadhaar number and name in the required spaces available to you. When you are done filling up your name and Aadhaar number, check it ones and click on validate and generate OTP. You will get a one time password (OTP) on the registered mobile number. Once you are successfully registered, you will be redirected to a form. Once again you need to fill the details like the name of your enterprise and the type of organization. Be careful while entering the ‘National Industry Classification code’ and ‘Majority Activity’. Check the data once to ensure that there are no errors and then click on submit. You will again receive an OTP via mobile number. Lastly, you need to enter the OTP number accurately and click on submit. The acknowledgment form contains the unique UAN that is Udyog Aadhaar number.

In this way, you can get your Udyog Aadhaar registration in a very easy go.

Things to be noted is that there are no Udyog Aadhaar fees and the printing of the Udyog Aadhaar can be done only after you have successfully registered under it.

The point to be noted is that; Udyog Aadhaar Registration is on a self- declaration basis therefore, no documentation is required. The certificate of registration will be granted after 24 hours from the time of registration and lastly; more than one Udyog Aadhaar number can be filed with the same Aadhaar number.

How to update your Udyog Aadhaar if there is an error:

After you obtain your Udyog Aadhaar number, you may find that there are some mistakes with your Udyog Aadhar details. In case any error occurs during the registration process, there is a simple way by which you can fix the problems. With a few steps, you can easily update or edit your information on Udyog Aadhaar with the help of the new provision recently launched by the Ministry of MSME. This will allow in the editing of the application of the Udyog Aadhaar Memorandum. the Udyog Aadhaar Certificate has no expiry date but the thing to be noted is to see whether the unit has fallen sick or is functioning.

Are MSME and Udyog Aadhaar same ?

Well, Udyog Aadhaar registration and MSME registration both are similar in many aspects but different as well. Udyog Aadhaar is an easy way to obtain than MSME Registration. Udyog Aadhaar registration is an online method through which you can get your twelve digit Udyog Aadhaar number and afterward depending upon your desire you can go for MSME registration. Thus, Udyog Aadhaar can be termed as the new way of getting MSME registration although very much different from MSME.

Benefits one can get after Udyog Aadhaar Registration:

There are several kinds of benefits of Udyog Aadhaar and that are:

• As soon as you are done with the registration procedure, you will receive the benefits of all the government schemes such as an easy loan, loan without guarantor, a loan with a subsidized rate of interest, and many more.
• You will be provided with all sorts of financial help for participating in foreign export to showcase your products.
• It is eligible for the IPS subsidy.
• On registering you will be eligible for the government subsidies.
• You will also experience a hassle-free opening of the current bank act in the name of the business.
• For patent registration, there is a 50 % subsidy.
• You will be allowed to apply for any sort of micro business loans and other such related beneficial schemes.
• Registration in MSME will help your business to apply for various services that are offered by the government of our country India.
• A Barcode registration subsidy.
• Your business will be provided with an entity as an MSME unit without any kind of additional charge.
• After registering you will be provided with a platform where all your problems such as delays in receiving payments will be solved.
• Having a Udyog Aadhaar will help you to get a subsidy for obtaining a trademark for your business.

From this piece of content, we have come to know as to how important it is to have a Udyog Aadhaar Registration as it helps to carry forward the small and micro enterprises in a legal way. Over the last few decades, it has been graphed that the MSME’S have become a backbone of the enhanced economic growth as they play an important role in employing a large rate and that too on low investments thereby reducing the major employment problems and also help the backward areas