Registering Udyog Aadhaar is mandatory for all types of business which is running as MSMEs, without Udyog Aadhaar registration no business shall be qualified for availing the benefits allocated for MSMEs by the government of India. The primary objective of Udyog Aadhaar is to streamline the regulatory procedures for MSMEs, including filing trademark, copyright, or patent applications, applying for new GST registration, availing collateral-free loans, and accessing government schemes or offers. Registration of UDYOG Aadhaar is an entirely online process. The registration process concludes with the issuance of a unique 12-digit identification number, which is issued to the owner and serves as proof of the business’s legal identity, as verified by the government. Despite the ease of Udyog Aadhaar registration, many companies are interested in knowing how to cancel or permanently delete their Udyog Aadhaar registration. This article explains how to cancel the Udyog Aadhaar registration.
For cancellation, apply to the Udyog Aadhaar Registration Centre, specifying all the details of the business activity whose registration you wish to terminate. Additionally, please briefly specify the reason for such termination in the application. Currently, Udyog Aadhaar Registration holds significant importance for businesses in our country. Whether it is a small-scale or mid-scale business, after having subbed the Micro Small registration process, Udyog Aadhaar Registration has become mandatory.
The primary reason behind the introduction of the Udyog Aadhaar scheme through the Micro, Small and Medium Enterprises Development Act, 2006, was to reduce the paperwork involved in the existing Registration process of MSMEs. Following the introduction of Udyog Aadhaar in 2015, the registration process for Micro, Small, and Medium Enterprises has been simplified with a clear set of steps. Notably, it can be completed both offline and online. An enterprise having UDYAM Registration Number can update its information online in the UDYAM Registration portal on a self-declaration basis. For the same tab named “UPDATE UDYAM REGISTRATION” can be used.
You cannot cancel the registration once it has been applied. No Refund will be provided once the application is done and the MSME Certificate is issued. MSME Registration certificate applied online will be delivered within 24 hours to the Email ID provided in the online application form. Before the MSME Registration scheme, the business owner had to fill out Entrepreneurship Memorandum-I and Entrepreneurship Memorandum-II with the relevant District Industrial Centre.
However, after the introduction of Udyog Aadhaar, these two entrepreneurship memoranda were replaced with the Udyog Aadhaar Memorandum, which is understandable and straightforward. And it is also easy to obtain the Udyog Aadhaar Card, all you have to do is to submit some personal documents along with the documents relating to the business sought to be registered.
Udyog Aadhaar is a twelve-digit unique identification registration number provided by the Ministry of Micro, Small and Medium Enterprises, Government of India. By registering for a Udyog Aadhaar, your business enterprises will qualify to avail of various benefits under different government schemes, such as concessions on electricity bills, loans at low-interest rates, stamp duty and registration, trademarks, and bank transactions, among others.
It is similar to a regular Aadhaar card, but it is specifically designed for businesses and enterprises, and is also known as Aadhaar for Business. In India, from 2015, after its introduction, over 84 lakh micro, small, and medium enterprises or businesses were registered under this scheme by the end of 2019.
Procedure to Cancel Udyog Aadhaar Registration
Ministry of Micro, Small & Medium Enterprises extended the validity of Udyog Aadhaar Memorandum (UAM) from March 31, 2021, to December 31, 2021. According to official data, 1.02 crore MSMEs have registered on the Udyog Aadhaar portal, which will now remain valid until December 2021.
It is often said that Udyog Aadhaar cannot be cancelled or deleted; rather, it can only be modified or updated. However, this is not entirely true. There is a procedure to cancel a Udyog Aadhaar, and it can only be done offline. Here is a step-wise procedure to cancel Udyog Aadhaar registration.
Search for Udyog Aadhaar Registration Centre
Both MSME and Udyog Aadhar registration processes are quite similar, but they are different initiatives. Udyog Aadhar can be an easy means to acquire MSME registration. So, you can easily apply for MSME registration once you get your 12-digit Udyog Aadhar number.
The first step in the cancellation of Udyog Aadhaar Registration is to find the nearest Udyog Aadhaar Centre in your location ( the location where you run your business). It is usually placed near the District Industrial Centre. Essentially, every state has a separate centre, and here you can obtain the form for cancelling your Udyog Aadhaar Registration. If you are unable to find the correct location of the Udyog Aadhaar Registration centre, look at the bottom of your Udyog Aadhaar Registration Certificate; the address and contact details of the District Industrial Centre will be specified there.
Applying for Cancellation
For cancellation of Udyog Aadhaar Registration, write an application or formal letter to the Udyog Aadhaar Registration Centre, stating all the details of the enterprise or business activity, and state whose registration needs to be terminated or cancelled. Also, briefly state the reason for the termination or cancellation of the Udyog Aadhaar Registration in the application.
Documents Required for cancellation of Udyog Aadhaar Registration
Although there is no specific list of required documents for cancelling a Udyog Aadhaar, it is always advisable to have all necessary documents for the enterprise, including the application form, the original Udyog Aadhaar Card, bank account details related to the business, and any documents submitted during the registration process. Have the photocopies and also the originals of the above-mentioned documents.
Get the Acknowledgement
Once your application and other documents have satisfied all the requirements, get an acknowledgement from the authorised officer at the District Industrial Centre. Keep this acknowledgement safe, as it may be needed at some point in the future.
Here are a few essential things that you have to remember while cancelling Udyog Aadhaar
- Before applying for a cancellation of the Udyog Aadhaar Card, check that you have closed all your business activities related to that particular enterprise. And importantly, you need to deactivate the bank accounts associated with that specific business.
- In some places, a declaratory letter is required, in which you must specify whether your enterprise avails itself of any benefits under government schemes, as listed in the Udyog Aadhaar Card.
- When writing the application for cancellation of registration, state the reason for cancellation briefly and clearly. If the details or reasons relating to the enterprise mentioned are incorrect, there are prospects for rejection of the cancellation application.
- No fee is required at the time of updating or cancellation of the Udyog Aadhaar Card.
- To clarify, the misconception that Udyog Aadhaar registration cannot be terminated or cancelled is entirely untrue. It can be done very easily, but the owner of the enterprise must visit one of the Udyog Aadhaar Registration Centres in person and then submit an application for cancellation of the Udyog Aadhaar registration. One additional point to note is to carry all relevant business documents when submitting the cancellation application.
Conclusion
For Indian citizens, the Aadhaar Card serves as a primary identification document. This guide provides comprehensive details on the relevance of the Aadhaar Card in corporate operations, as well as its importance, function, and document requirements.
