What is Udyog Aadhar? Why do we need it and how can you apply for it?
In recent times, for boosting small-scale businesses in the country, the Government of India has initiated the Udyog Aadhaar Registration process. Earlier, if you wished to start a business and get SSI registration or MSME registration, you needed to go through a lot of paperwork.
Now, you need to fill only 2 forms: Entrepreneur Memorandum-I and Entrepreneur Memorandum-II instead of 11 different types of forms that were required earlier.
The Udyog Aadhar Registration is a completely online process which is totally free of cost. Industries registered with Udyog Aadhar become entitled to receive the benefits of several government schemes such as subsidies, easy loan approvals etc.
UAM (Udyog Aadhaar Memorandum)
Udyog Aadhaar Memorandum is the registration form wherein the MSME certifies its existence, and provides mandatory information such as owner’s Aadhar details, bank account details etc.
After submitting this form, an acknowledgment form is released to the registered email of the applicant containing the unique UAN (Udyog Aadhaar Number).
As it is a self-declaration form, there’s no need for any supporting documentation. Note:( Even though supporting documents are not required, any central or state authority can ask for specific documentation as proof of information provided in the UAM form).
Udyog Aadhaar Registration Process
- The SME (Small and Medium Scale Enterprises) owner needs to fill a one-page form that he can do either online or offline. For online registration, the applicant should visit the official website: www.msme.gov.in
- If someone wishes to register for more than one industry then they should opt for individual registration
- In this form, the MSME has to self-certify its existence, details of the business activity, bank account, ownership and employment details and other information
- Here, during this registration process, the individual needs to provide his self-certified certificates
- As mentioned above, no registration fees are required to be paid for this process
- After filling the details and uploading the same, the registration number would be generated and the same would be mailed to the email address given in the UAM which should contain unique UAN (Udyog Aadhaar Number)
Documents Required for Udyog Aadhaar Registration
|Aadhaar Number||Twelve digit Aadhaar number which is issued to the applicant.
This Aadhaar number in case of Proprietary Enterprise must be of the Managing partner, of Authorised Partner for Partnership Enterprise and of Authorised Person for Other forms of Enterprises
|Name of Owner/Promoter||The name of applicant as provided in the Aadhaar Card|
|Category||General / Scheduled Tribe (ST)/ Scheduled Caste (SC) / Other Backward Castes (OBC)|
|Business Name||Name of the of Entity under which it is conducting its business. One applicant could have more than one enterprises and each one could be registered individually with the same Aadhaar Number for a separate Udyog Aadhaar|
|Type of Organization||Type of Business entity or Legal Entity. (Proprietorship, Partnership Firm, Hindu Undivided Family, Private Limited Company, Co-Operative, Public Limited Company, Self Help Group, LLP, Others)|
|Address||Postal Address of the business for communication purposes including contact numbers and email address|
|Date of Commencement||The commencement date of the respective businesses|
|Previous Registration Details (if any)||Details of any previous MSME registration|
|Bank Details||Banking details of the of the company which includes Bank Account number and IFSC Code|
|Key Activity||Key areas of activity of the business –service or manufacturing|
|National Industrial Classification (NIC) Code||The NIC Code must be entered from the National Industrial Classification handbook. The Applicant might select multiple National Industrial Classification-2008 (NIC) Codes for including all of its activities.|
|Number of persons employed||The number of employees in the business|
|Investment in Plant & Machinery / Equipment||Total amount investment in terms of machinery and equipment by the business|
|District Industry Center (DIC)||The details of the DIC (District Industry Center) nearest to such business, if needed|
Benefits of Udyog Aadhar Registration
- After registering their MSME, the applicant will receive the benefits of all the government schemes such as an easy loan, loan without guarantee, loans with subsidized rates of interest etc.
- The applicant will receive financial support for participating in foreign expos to showcase their products.
- The applicant will also be eligible for government subsidies.
- Registration would facilitate hassle-free opening of current bank accounts in the name of the business.
- It would also allow businesses to apply for government micro business loans and other such related beneficial schemes.
With two lakhs registered businesses in the MSME category, the industry is moving towards becoming organized and systematized with maximum benefits for the entrepreneurs.
If you need further help, talk to our expert. You can also avail our business registration services.