What Is Udyog Aadhar?
The question that attracts every entrepreneurs attention is “what is UdyogAadhar?”. Udyog Aadhar is the government registration of any business entity for a 12 Digit unique number along with a recognition certificate in order to certify small/medium businesses or enterprises after complying with MSME registration.
This brainchild has been developed by the Governement of India(GOI) in order to simplify the procedural format that business owners had to go through in order to register their business under Micro Small Medium Enterprise or MSME.
The main idea behind the introduction of this unique aspect was to offer a path to the GOI to endow the medium or small-scale businesses or industries in India with utmost benefits, for those registered via MSME and also their Aadhar Card Number.
Prior to the introduction of the UAM (Udyog Aadhar Memorandum) system, there existed a former system of EM-I/II (Entrepreneur Memorandum). Under EM-I/II, entrepreneurs used to opt for a complex and diverse process. Some of them used to rely on the national portal, and some of the states had their own individual portal for carrying out MSME registration. Additionally, there were a few who used to rely on manual paperwork.
However, life has become better with the introduction of Udyog AadharMemorandum(UAM).
Benefits Of Udyog Aadhar Registration
One will get to enjoy a number of advantages after registering his/her business and also obtaining Udyog Aadhar. The best thing about obtaining Udyog Aadhar is that the process is quite simple and in addition to that, one won’t have to handle paperwork for obtaining Udyog Aadhar.
The primary benefits derived from the Udyog Aadhar are aimed at protecting small enterprises and to assist them in growth and development are as follows:
-
Exemption under excise laws.
-
Exemption under the direct tax laws.
-
Reduction in fee for filing patents and trademarks.
-
Credit guarantee scheme.
-
Upon getting registered with MSME, the business will be eligible for availing government scheme benefits which will include loans without guarantee, low-interest rates on loan, and easy loan.
-
There will be financial backing from the government for participating in foreign business expos.
-
Other types of subsidies that will assist in incrementing the enterprise’s revenue.
-
Concession in electricity bills.
-
An exemption will be alloted when your enterprise applies for government tenders.
-
The extent of guarantee cover being raised from 75% to 80%.
Apart from these there are also other benefits, such as:
-
Barcode registration subsidy.
-
Octroi benefits.
-
1% exemption in interest on OD.
-
Reservation of products for exclusive manufacturing by MSME/SSI.
-
Protection against delay in payment.
-
Counter guarantee from GOI through CGSTI.
-
Fast resolution of disputes.
-
Increasing eligible loan limit for optimal reasons, from Rs. 25 lakh to Rs. 50 lakh.
-
Subsidy on NSIC Performance and Credit ratings.
-
Reimbursement of payment made for obtaining ISO certification.
-
15% subsidy under CLCSS scheme for technology upgradation.
-
Eligible for IPS subsidy.
Who should get registered under Udyog Aadhar?
Any form of business entity can be registered under Udyog Aadhar, be it Proprietorship, Hindu Undivided Family(HUF), one-person company(OPC), Partnership Firm, public limited company, private limited company, production company, co-operative societies, limited liability partnership(LLP) or any association of persons or any other undertaking.
For a sole propreitorship who donot have an official recognition, Udyog Aadhar is highly advisable, since it helps to attain an unique identity and official registration, validating the existence of the business.
For MSME registration, it is quintessential to take into stride the eligibilty criteria defined in the MSMED Act, 2006, there are certain norms that an entity has to fulfill in order to be regarded as a micro/small enterprise or medium enterprise.
How to get registered under Udyog Aadhar and its steps?
The process of registration under Udyog Aadhar is very simple and an efficient one. The new system is far more user friendly, and it asks for less information than the previous process(EMI/II). These are the steps for registering under MSME for obtaining Udyog Aadhar:
1) Visit the Official Website of Udyog Aadhar
Register online upon visiting the official Udyog Aadhar Registration portal.
2) Personal Information
The mandatory details that you will need to input are your name and your 12-digit unique Aadhar number. Click on “Validate & Generate OTP.” An OTP will be sent to the registered mobile number. Enter the OTP, and after that, you will have to select the social category from the options such as General, SC, ST and OBC.
In case of Company, the authorised signatory who is applying on behalf of the company shall provide his Aadhar number during registration and in case of partnership, the partner applying Udyog Aadhar shall give his/her AadharNumber.
P.S: It is important to note that the Udyog Aadhaar registration is for those individuals who possess an enterprise as well as an Aadhar card. In case a person doesn’t have an Aadhar card, he/she can also file for UAM in a physical form with the General Manager(GM) of their respective District Industries Centre(DIC). An acknowledgement will be sent upon the successful submission of the form and the certificate of registration sent online, can also be printed.
3) Details About the Entity/Enterprise
After that you will have to enter the name of the legal entity conducting the business. You will have to file a separate Udyog Aadhar if you own more than one entity or enterprise.
PAN is compulsory for LLP, Company and Co-operative society, for others it is optional.
You can fill it as Enterprise-1 and Enterprise-2. You will also have to select the “Type of Organization” from the drop-down list such as Proprietorship, Hindu Undivided Family(HUF), one-person company(OPC), Partnership Firm, public limited company, private limited company, Self Help Groups(SHG), co-operative societies, limited liability partnership(LLP).
4) Official address
After filling all the details mentioned above, the next information that you will have to provide will be the complete postal address of the enterprise/entity including information about the email address, mobile number, pin code, district, state, stating its exact location.
5) Date of Commencement and previous registration details
You will have to provide the date of commenncement of business. You will also have to provide information regarding the previous registration through SSI, EM1, and EM2 including the UAM(Udyog Aadhar Memorandum) registration number.
6) Bank Details
You will have to enter the bank account number along with the IFSC code of the concerned branch of your principal place of business.
7) Classification of the Entity/Enterprise and NIC code
You will have to mention the principal activity of your enterprise from “services” or “manufacturing.” We know that things can be a bit confusing if your enterprise involves a combination of both the available options.
If that is the case, then one should consider choosing the category that constitutes the majority portion of the operations in your enterprise.
The correct NIC Code should be entered National Industrial Classification(NIC) Handbook.
8) Total number of workers and amount of investment involved
After filling all the above particulars, one of the last things that you will have to do will be entering the total number of workers employed in your enterprise and the total amount of money that you have invested in your enterprise.
9) Details of the District Industry Center
In the final step of this entire process, you will be selecting the district industry centre(DIC). After that, you will have to accept the declaration and submit your application. Then enter the OTP received on the number linked with Aadhar, and finally enter the code on the screen for final submission.
Henceforth, the acknowledgement number will be alloted.
Documents Required for Udyog Aadhar
Below, are the details and documents that you will require for completing the registration process in order to obtain Udyog Aadhar for your enterprise.
-
Name and Aadhar number of the business owner (as per the Aadhar card)
-
Document required as proof for social category( SC, ST and OBC)
-
Name of your organization or enterprise/entity.
-
Previous registration details of your enterprise
-
Type of organization that you own( Propreitorship, partnership, limited company, LLP etc)
-
Current address and account details.
-
NIC Code or National Industrial Classification Code.
-
The total number of workers employed at your organization.
-
Current activities of your firm(service or manufacture or both)
-
Email ID and mobile number of the entrepreneur.
-
PAN number and the total investment made in the organization by the entrepreneur
How To Edit/Update Udyog Aadhar Details?
In case any error has occured during the registration process, you shouldn’t be disheartened as there is a simple and straightforward way by which you can get rid of the problem.
The ministry of MSME has recently launched a new provision that allows applicants to edit the Udyog Aadhar Memorandum. You can easily update or edit your information on Udyog Aadhar with a few clicks only, via Entrepreneur's Login on the official website. The steps are as follows:
-
Visit the official website of Udyog Aadhar.
-
Enter the Aadhar number and your name.
-
Enter verification code and submit.
-
Enter the OTP received on the Aadhar linked number.
-
Then enter the details which are subject to changes and update them.