Udyog Aadhaar registration is a government registration that provides a recognition certificate and a unique number in order to certify small/medium businesses or enterprises.
Proprietorships, Hindu Undivided Family (HUF), Partnership Firm, One Person Company, Limited Liability Partnership, Private Limited Company, Limited Company, Producer Company, any association of persons, co-operative societies or any other undertaking can obtain Udyog Aadhaar registration.
However, there are a set of criteria that an entity has to meet in order to be classified as a medium, small, or micro-enterprise for obtaining the MSME registration.
So, before you apply for Udyog Aadhaar registration, you must check if your company can be classified as a micro, small, or medium enterprise under the eligibility criteria defined in the MSMED Act, 2006.
The central motive behind providing this facility is to give the maximum benefits of several government schemes such as subsidies, easy loan approvals, etc. to registered medium or small-scale businesses or industries in India,
Udyog Aadhaar Online Registration Process
Time needed: 15 minutes
Follow the detailed process given below to complete the registration. Once the registration process is complete, the government will verify the information provided and you will receive an e-registration document on your e-mail ID.
- Go to the Udyog Aadhaar website
Visit the official website for beginning the registration process.
- Select the option to register
Click on “For new Entrepreneurs who are not registered yet as MSME” option.
- Enter required information
Enter the details of your Aadhaar and click on the option “Validate & Generate OTP”
- Validate the details
Enter the OTP sent to the registered mobile number to verify the details of the Aadhaar.
- Verify PAN details
Select the type of organization and enter your PAN number and click on validate.
- Enter the required details
Enter the following details:
1. Mobile number and Email ID
2. Social Category and Gender
3. Name of Enterprise and Address of office
4. Date of Incorporation
5. Select whether in production or not
6. Date of commencement of business
7. Bank details of the entity
8. The major activity of the business unit i.e. Manufacturer or service unit
9. National Industry Classification (NIC) Code for Activities (One or more activities can be added)
10. The number of persons employed
11. Amount invested in plant or machinery
12. Check yes or no if you are interested to get registered on Government e-Market (GeM) Portal
13. Check yes or no if you are interested to get registered on TReDS Portal
- Enter the OTP
After filing out the important details, select the checkbox “Agree Terms and Conditions” and finally submit the form and validate with OTP.
Points to be noted:
- Small and medium scale industry owners can file form for registration in both manners i.e online or offline.
- Secondly, there are no registration fees required to be paid for this process.
Registration without Aadhaar card
In case the applicant doesn’t have Aadhaar card then he/she must visit the nearest Aadhaar enrollment center for enrollment. Till the time Aadhaar is issued to the individual the below documents can be used to continue the registration process:
Further, Copy of Aadhaar enrollment slip or copy of Aadhaar slip for Aadhaar enrollment can be used.
For Aadhaar enrollment process below documents are required:
- Employee photo identity card
- Driving license copy
- Passport copy
- Copy of voter ID card
- PAN card copy
Then, after completing the above process you can continue your business with MSME/SSI certificate.
Documents Required For Udyog Aadhaar Registration
- Aadhaar cards of Proprietor / Partners/ Directors
- Copy of PAN Card business
- P&M as well as equipment investment details. (Amount of Investment)
- Likewise, Turnover Details
- Valid Mobile number as per Aadhaar card as well as valid email address
- Proof of date of commencement of business
- Copy of Bank statement with IFSC code
- Name of Business as well as address proof of business
- Partnership deed or MOA/AOA
- Sales as well as purchase bill copies
- Copies of licenses as well as bills of purchased machinery
How To update Udyog Aadhaar Details?
The ministry of MSME has recently launched a new provision that allows applicants to edit the Udyog Aadhaar Memorandum. You can easily update or edit your information on Udyog Aadhaar. Enter your Aadhaar number, your name, and the OTP that you receive, and you will be able to edit or update your information.
Benefits Of Udyog Aadhaar Registration
One will get to enjoy a number of advantages after registering his/her business and by obtaining Udyog Aadhaar. The best thing about obtaining Udyog Aadhaar is that the process is quite simple and in addition to that, one won’t have to handle the paperwork for obtaining Udyog Aadhaar.
There are many benefits derived from the numerous schemes that are offered by the Ministry of MSME with the aim to protect small enterprises and to assist them in growth and development.
- After getting registered, your business will be eligible for availing government scheme benefits for MSMEs which will include loans without guarantee, low-interest rates on loan, and easy loan.
- Collateral free loans as well as a reduced rate of Interest from banks
- It helps to open the current account easily.
- Allows a 1% exemption on the interest rate on overdraft.
- Protection against delayed payments
- Benefits under the Credit guarantee scheme
- 15% subsidy under CLCSS scheme for a technology upgrade
- Carry forward the minimum alternate tax (MAT) credit for up to 15 years instead of 10 years
- Reimbursement of payment made for obtaining Trade Mark, Patent or Intellectual Property
- Benefit up to 75% of registration fees for Barcodes
- Concession in electricity bills
- Enterprises registered can enjoy Direct Tax Exemption in the initial year of business, as mention in the scheme by Government and depending on business activity.
Changes in Effect from 01-07-2020 – Atmanirbhar Scheme
Due to the Atmanirbhar Scheme and to ease the process of doing business, the union of MSME has introduced the new definition of MSME and also the new registration process to be known as the “Udyam Registration.” The new portal takes effect from 01-07-2020.
Difference Between New and Old Registration Process
| Basis of Difference | Udyog Aadhar Memorandum | Udyam Registration |
| Aadhaar Number | Earlier we can take multiple registrations while using one Aadhar | Now one Aadhar one Udyam registration
One enterprise shall only have on Udyam registration. |
| PAN Validation | No PAN validation | Now PAN validation is mandatory and all the enterprises registering with portal must have PAN and GSTIN. |
| Number of Employees | Earlier only the number of employees is to be entered. | Now segregation must be given as per Gender. |
| Linkage with Income Tax, PAN and GST department | Earlier all figures are to be entered manually on a self-declaration basis. | Now, the Udyam portal is lined up with other departments and all the details should be as per ITR (last year filed) and GST. |
| Composite criteria for the classification of MSMEs | Earlier enterprises were classified into two sectors manufacturing and service sector, and there are separate limits for both the sectors for classification of the same. | Now there are the composite criteria for both the manufacturing and service sector. There is the same limit of Investment and annual turnover for both the sectors for classification. |
| Investment Information | Amounts of investment had been manually entered. | Investment gets auto-filled based on last year’s filed ITR and in case of the new enterprise, must be filled on a self-declaration basis and this relaxation is available till 31st March after that update is required, else certificate gets suspended. |
| Registration certificate | Udyog Aadhar Memorandum (UAM) is issued instantly at the time of registration only. | After applying for an Udyam Registration Number is issued and Udyam Registration Certificate shall be issued only after verification. |
Important Points Related to Udyam Registration
- Udyam Registration Certificate
- It will have a dynamic QR code from which the web page of the portal and details about the enterprise can be accessed.
- Income tax, GST and PAN department
- These departments are linked with the portal for verification of all the information.
- Criteria of the classification
- Investment and turnover of enterprises are now composite for both the manufacturing and service sector.
- Existing registered enterprises have to re-register with the new portal before 31.03.2021.
- PAN and GSTIN are mandatory for registration
- In the case of a Company, LLP, Cooperative Society, Trust, Society, GSTIN, and PAN along with its Aadhaar number are mandatory.
- In the case of the proprietor, you can continue with Aadhar only on a self-disclosure basis but before 03-2021 you must apply for PAN & GST number and must update the same on the portal.
- The registration of the following two portals are also integrated with Udyam Registration Portal for the facilitation of MSME and ease of doing business –
- Government e-Market (GeM) portal, and
- TReDS portal
- Reclassification of existing registered enterprises following the new definition
- For ascertaining an enterprise as micro, small or medium, an enterprise must fulfill both the criteria i.e., investment and turnover. If the enterprise crosses the ceiling limit of even one criterion, then it will cease to exist in that category and be placed in the next higher category.
- But the enterprise cannot be placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.
- In case of an upward change (from a lower to a higher category i.e. Micro to small), an enterprise will maintain its prevailing status till the expiry of one year from the close of the year of registration.
- In case of reverse-graduation (sliding down to lower category i.e. Small to Micro) of an enterprise, the enterprise will continue in its present category till the closure of the financial year and it will be given the benefit of the changed status only with effect from 1st April of the financial year following the year in which such change took place.
FAQs
MSME registration and Udyog Aadhaar Registration both are similar. Udyog Aadhaar is just an easy way of acquiring MSME registration.
Udyog Aadhaar Registration is an online method by which an MSME can get the 12-digit Udyog Aadhaar Number and get MSME registration.
The Udyog Aadhaar Registration can be done online by individuals themselves in case they have an Aadhaar number. However, in all exceptional cases, including those of not having Aadhaar number, can still file Udyog Aadhaar Memorandum ,in offline mode(i.e. on paper form), with the General Manager(GM) of the concerned District Industries Centre(DIC). The same has also been notified in the gazette dated 18-09-15.
The persons having Aadhaar numbers, by virtue of having provided the demographic as well as biometric details to the state, once and for all, indeed enjoy a greater ease of registration at the UAM portal.
The information sought is on self-certification basis and no supporting documents are required at the time of online filing of UAM
Hey @Sofiyah_Valiante ,
The following listed are the benefits of Udyam Aadhar Registration:
Hope this helps!