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Udyog Aadhaar Registration: Process, Documents Required & Benefits

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Laxmi Navlani

Start & Run Business
Startup-India
Udyog Aadhaar Registration
Last updated on May 5th, 2021

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,

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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.

  1. Go to the Udyog Aadhaar website

    Visit the official website for beginning the registration process.Udyog Aadhaar Website

  2. Select the option to register

    Click on “For new Entrepreneurs who are not registered yet as MSME” option.

  3. Enter required information

    Enter the details of your Aadhaar and click on the option “Validate & Generate OTP”Udyog Aadhaar Registration Form

  4. Validate the details

    Enter the OTP sent to the registered mobile number to verify the details of the Aadhaar.

  5. Verify PAN details

    Select the type of organization and enter your PAN number and click on validate. Verify PAN details

  6. 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 PortalEnter important details in the Udyog Aadhaar Form

  7. 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:

  1. Small and medium scale industry owners can file form for registration in both manners i.e online or offline.
  2. 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:

Then, after completing the above process you can continue your business with MSME/SSI certificate.

Documents Required For Udyog Aadhaar Registration

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.

  1. 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.
  2. Collateral free loans as well as a reduced rate of Interest from banks
  3. It helps to open the current account easily.
  4. Allows a 1% exemption on the interest rate on overdraft.
  5. Protection against delayed payments
  6. Benefits under the Credit guarantee scheme
  7. 15% subsidy under CLCSS scheme for a technology upgrade
  8. Carry forward the minimum alternate tax (MAT) credit for up to 15 years instead of 10 years
  9. Reimbursement of payment made for obtaining Trade Mark, Patent or Intellectual Property
  10. Benefit up to 75% of registration fees for Barcodes
  11. Concession in electricity bills
  12. 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

FAQs

What is the difference between MSME Registration & Udyog Aadhaar Registration?

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.

Is it mandatory to have Aadhaar Number for an entrepreneur to file Udyog Aadhaar memorandum?

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.

How to submit the supporting documents while filing UAM online?

The information sought is on self-certification basis and no supporting documents are required at the time of online filing of UAM

Got Questions? Ask Away!

  1. Hey @Sofiyah_Valiante ,

    The following listed are the benefits of Udyam Aadhar Registration:

    1. Loans without collaterals
    2. Subsidy on Patent Registration & Industrial Promotion
    3. Overdraft facility along with Interest Rate Exemption
    4. ISO Certification Charges Reimbursement
    5. Concession on Electricity
    6. Helps in Getting Government Tenders
    7. Becomes Easy to Get Licenses, Approvals, and Registrations
    8. Get exemption under Direct Tax Laws
    9. Take Part in International fairs

    Hope this helps!