Online Udyog Aadhaar Registration

With the view to promoting ease of doing business, the Ministry of MSME has come out with a free and online Udyog Aadhaar registration, which can be filled only by small and medium enterprises 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. This article examines the procedure for completing online Udyog Aadhar registration in India.

Types of MSMEs

Before exploring the concept of Udyog Aadhar, let us understand the classification of MSMEs. The Micro, Small and Medium Enterprises (MSMED) Act, 2006 has categorized the flourishing MSME sector into two kinds, which are briefly described below:

Manufacturing Enterprises

The manufacturing sector is a vibrantly growing sector in India. As the name would convey, these are enterprises engaged in manufacturing or producing goods in any of the industries specified in the first schedule of the Industries (Development and Regulation) Act, 1951. The manufacturing enterprise is defined in terms of investment in Plant and Machinery.

Service Enterprises

As simple as it may sound, 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 has been created to encourage online filing of Entrepreneurs Memorandum (also known as MSME registration) for Micro, Small, and Medium Enterprises. The online Udyog Aadhaar registration process will simplify with an online and simple one-page registration form. In the document, the MSME will self-certify its existence, bank account, business activity details, employment and ownership details, and other information.

Udyog Aadhaar Memorandum (UAM)

The Ministry has notified UAM of MSME under the MSMED (Micro Small and Medium Enterprises Development) Act, 2006, for promoting ease of starting small and medium-sized businesses. As mentioned earlier, 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 online by using the portal from any part of the country. Additionally, mobile access is 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 the Delayed Payments Act which is significant of the rate stipulated by the RBI
Other benefits like opportunities to participate in exhibitions abroad

Conditions for Udyog Aadhaar Memorandum Registration

Any MSME can file for UAM in Form I following the following conditions:

The Udyog Aadhaar Memorandum can be filled out online on the official portal of the Ministry of Micro, Small, and Medium Enterprises.
Every micro, small and medium enterprise involved in the manufacturing of goods or services with investment in plant and machinery below the limit specified under Section 7 of the MSMED Act should file the Udyog Aadhaar Memorandum.
The Udyog Aadhaar Memorandum should be filled only after establishing the unit by obtaining all regulatory approvals and starting commercial operations, including manufacturing or service, or both will be specified in the Udyog Aadhaar Memorandum.
The proprietor from the proprietorship firm, managing partner from the partnership firm, and Karta from Hindu Undivided Family should provide respective Aadhaar numbers in the memorandum.
In the case of a company, LLP, society, cooperative society, or trust, the PAN number of the organization along with the Aadhaar number of the authorized signatory should be specified in the Udyog Aadhaar Memorandum.
For verification of the new memorandum and an existing one, a one-time password (OTP) will be forwarded to the mobile number linked to the Aadhaar number of the applicant. The applicant is required to enter the OTP in the form before submission of the memorandum.
The memorandum can be filed on a self-certification basis, and no additional documentation is required to be uploaded when applying for Udyog Aadhaar Memorandum.
The State Government, Central Government, or any other authorized officer may seek documentary proof of the information given in the Udyog Aadhaar Memorandum if required.
Udyog Aadhaar Acknowledgement in Form II, along with a unique Udyog Aadhaar Number (UAN), will be created, and the same will be forwarded to the email address registered in the Udyog Aadhaar Memorandum.

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's name is 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 enterprise 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.
1. Proprietorship
2. Partnership Firm
3. Hindu Undivided Family
4. Private Limited Company
5. Cooperative
6. Public Limited Company
7. Self Help Group
8. Others (Limited Liability Partnership)
Postal Address– Address of the business including mobile and email address.
Date of Commencement– The date on which businesses were started.
Previous Registration Details– Details of previous MSME registration, if applicable should be entered here.
Bank Details– Details of the 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. Click here to download NIC Code Handbook.
The person employed– The total number of people used in the business.
Investment in Plant & Machinery / Equipment– The amount of money invested in machinery and equipment by the business.
DIC– Details of the District Industry Center nearest 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 associated with MSME. Further, this, select the option ‘Validate and Generate OTP’(One Time Password) Step 3: Enter the OTP received. If this is not set, 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. Find NIC code. Step 5: Re-check the details filled in and click on the Submit button after submitting all the details. Verify the OTP number generated by the registered number with the Captcha code required. Step 6: An acknowledgment number will be generated and e-mailed to the applicant, which should be noted for future reference.

Non-availability of Aadhaar

In case of an applicant does not have an Aadhaar number or in the case where online filing is not applicable, a hard copy of the duly filled form I is to be submitted to the concerned District Industries Center or the Micro, Small, Medium Enterprise-Development Institute (MSME-DI) office. Accordingly, the concerned DIC or MSME-DI will file the Udyog Aadhaar Memorandum online on behalf of such an enterprise.

Udyog Aadhaar Memorandum for Existing Enterprises

Any existing enterprises which have filed EM-II or holders of Small Scale Industry (SSI) registration before the MEMED Act, 2006, need not require to file Udyog Aadhaar Memorandum. Also, it has to be ensured by the entrepreneur that no enterprise should file more than one memorandum.

Verification of UAM

The General Manager of the DIC (District Industries Center) is responsible for verifying the memorandum submitted by the respective enterprise. In case of any discrepancy found, the concerned authority will issue a notice to the enterprise to present its case, and based on the same; the authorized officer may cancel or amend the Udyog Aadhaar Memorandum.

Modification of UAM

In case of change of address or addition or removal of activities by the enterprises can be performed by applying for amendment of the existing memorandum. The proprietor or managing partner can file under the online UAM specified under the official portal of the Ministry of MSME (Micro, Small, and Medium Enterprises). The procedure for amendment in the Udyog Aadhaar Memorandum would be the same as of the new Udyog Aadhaar Memorandum registration.

Date of Commencement of Production

The entrepreneur provides the date of commencement of production of a new enterprise when filing the Udyog Aadhaar Memorandum. The entrepreneurs are advised to indicate the correct date of birth of production without inspection of the enterprise by the District Industries Centres. In case of discrepancy regarding the date of commencement of commercial production, the concerned authority of District Industries Centers will prefer the date of first sale invoice of manufacturing enterprise or delivery challan in case of manufacturing enterprise on job work basis has to be issued by the enterprise as evidence for determining the date of commencement of commercial production of the enterprise. For more assistance, contact an IndiaFilings Business Expert at sales@indiafilings.com. IndiaFilings can also help you obtain Udyog Aadhaar registration in India.

New MSME Udyam Registration

Now, MSMEs can apply for Udyam Registration. The government of India initiated Udyam registration as a substitute to the earlier method of Udyog Aadhaar to make it easier for MSMEs to register with the government portal. Earlier, the process of Udyog Aadhaar registration was lengthy and confusing. The person registering for the same had to go through many categories and documents, requiring a lot of paperwork. With this new process, any person can register easily in a single window without needing extensive documents or paperwork for the same. Get in touch with IndiaFilings to get MSME Udyam Registration