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: