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Is Udyog Aadhar the replacement of MSME

Is-Udyog-Aadhar-the-replacement-of-msme

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  Posted on April 24, 2021

Are you a micro, small or medium business and haven’t registered under MSME yet? Don’t worry. You are in the right place. Stick on to know about MSME and UAM (Udyog Aadhar Memorandum) and enjoy the benefits.

It was really hard, hectic and time-consuming bureaucratic process to register your business under Micro Small Medium Enterprise or MSME before. But it is simplified by Udyog Aadhar. The main idea behind launching Udyog Aadhar was to simplify the registration procedure of a business under Micro, Small and Medium Enterprise or MSME and it is successful now.

Before knowing about the UAM system, here is something you should know about – The former system of EM-I/II (Entrepreneur Memorandum). 

Under this system, enterprisers used to choose for a heterogeneous scheme like the national portal, few states had their own portal for MSME Registration and so on. Withal, things have commuted after the replacement of Udyog Aadhar.

 What is Udyog Aadhar?

Udyog Aadhar is nothing but Aadhaar for Business. It is a twelve-digit Unique registration number provided under the Micro, Small and Medium Enterprise Development Act, 2006 (MSMED) issued by the Government of India for small and medium businesses. 

The scheme of Udyog Aadhaar was established in September 2015 with the aim of promoting micro and medium-sized businesses. Nearly 48 lakh MSMEs are registered under Udyog Aadhaar in India by July 2018. Earlier Udyog Aadhar is referred to as MEME Registration. 

Later the process of applying MSME registration has been integrated with Udyog Aadhar registration. It is an online process and is completely FREE.

Who should apply for Udyog Aadhar Registration?

To make it clear, all types of business should get Udyog Aadhar, be it One-Person Company, Partnership firm, Producer company, Section 8 company, Limited Liability Partnership company, Private limited Company, co-operative society, business association or any other or undertaking.

But there are a set of standards in which your entity has satisfy to be classified as a  small, medium or micro business to get the MSME registration. It is your responsibility to check your business eligibility as a small, medium or micro business by referring to the standards of MSMED Act, 2006.

 

Classification Manufacturing Sector – Maximum Investment in Plant and Machinery Service Sector – Maximum Investment in equipmentd
Micro Enterprise                       Upto Rs. 25 lakhs  Upto Rs. 10 lakhs 
Small Enterprise Upto Rs.5 crore  Upto Rs.2 crores 
Medium Enterprise Upto Rs.10 crore  Upto Rs.5 crores 

 

What is the Udyog Aadhar Registration procedure 

Applying and getting Udyog Aadhar Number is very simple now. The Registration of Udyog Aadhar is done in its online portal, the person who possess a business and Aadhar card can apply. If the person doesn’t have an Aadhar card, he/she should file for UAM with the GM (General Manager) of the concerned District Industries Centre. GOI will be dealing with the problems faced by owners who don’t possess an Aadhar card later.

 Here comes the step-by-step procedure of filling Udyog Aadhar form 

  •  Go to the Official Website of Udyog Aadhar Registration https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx
  • Fill your personal details as asked in the form like your name, your Aadhar number – 12-digit unique number. After completing click on “Validate & Generate OTP”, enter the OTP number which you receive in your registered mobile number. 
  • Social Category: Provide the applicant’s caste
  • Enterprise Name: Fill the name of the enterprise by which the public or the customer knows it.
  • In case the applicant owns multiple businesses, he/she can obtain one or more Udyog Aadhar numbers using the same Aadhar Number.
  • Type of business: Choose the type of legal entity of your business
  • Enter PAN Number of owner/proprietor and in case of LLP or company, enter the PAN of the entity for which registration of Udyog Aadhar is applied.
  • Location of the business: Fill the accurate address and location of business.
  • Official Address: Enter your official or corporate office address followed by your mobile number and email address.
  • Commencement date: Enter the date on which your entity was launched.
  • Previous Registration Details: Fill the details of previous MSME registration, if any.
  • Bank Details: Fill the details of the bank account of the company along with IFSC Code and Bank Account Number.
  • Major Activity: Enter main location of the activity of your business happens like manufacturing or production or service.
  • NIC Code: choose the appropriate NIC Code (National Industrial Classification Code)
  • Person employed: Select the total number of employees working under your business.
  • Investment (details of Plant & Machinery/Equipment only):  Enroll the amount of money invested in Plant & machinery/equipment, excluding the value of building or land.
  • DIC: here you have to fill the details of the District Industry Center nearest to your entity if required.

 After completing all the above details, accept the declaration and submit the Udyog Aadhar application and finish the process. As a final Procedure, you will get an Acknowledgement number.

What are all the documents required to register Udyog Aadhar number

In case of a proprietorship, the applicants personal Aadhar number is the important requirement for applying Udyog Aadhar. Other than that, an email and a mobile number is enough to start.

  •  In case of partnership, any one of the partners Aadhar can be used.
  • In case of a company, any one of the Directors Aadhar can be used.
  • In case of LLP, the Aadhar card number of any Designated Partners can be used.
  • If an authorized signatory or applicant of the business does not own an Aadhar card, then he/she must first apply for Aadhar first. 

 In addition, the applicant would have to submit the following information:

  • Community Certificate
  • Name of your organization or business or enterprise
  • Previous registration details 
  • Type of your business
  • Current details of address and account details
  • National Industrial Classification Code or NIC Code
  • The total number of employees working in your organization
  • Your business’s current activities 
  • Mobile number and Email ID of the enterpriser
  • PAN number and the details of total investment  

 How to edit Udyog Aadhar Details?

This is very important to know how to edit the Udyog Aadhar details if something entered in the form is wrong or with some errors? Don’t worry, you can easily edit or update your details on Udyog Aadhar with a few clicks. 

The Ministry of MSME has launched a new provision recently that allows applicants to edit or update the Udyog Aadhar memorandum. 

Click this to update or edit your Udyog Aadhar Details.  https://udyogaadhaar.gov.in/UA/UA_EntrepreneurLogin.aspx

 What are the benefits you get from Udyog Aadhar

There are a number of benefits you receive after registering your business with Udyog Aadhar. With the main aim to promote small businesses and to assist them in development and growth, the Ministry of MSME offered numerous benefit schemes, from which here are the top benefits:

  •  Several exemptions under the direct tax laws
  • Diminution or reduction in fee for filing trademarks and 50% reduction for patents registration
  • After getting registered with Udyog Aadhar, your business will get qualified for government scheme benefits which will include loans without collateral / guarantee, easy loan and charging low-interest rates on loan.
  • Financial backing from the government of India for foreign business exports.
  • Other forms of subsidies that increase your company’s revenue.
  • Bang-up concession in electricity bills
  • Exemption in government tenders
  • Eligible for Industrial Promotion Subsidy
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