Udyog Aadhaar Registration
- The idea behind introducing Udyog Aadhaar MSME Registration was to simplify the procedural format that business owners had to go through to register their business under Micro Small Medium Enterprise or MSME.
- Before the introduction of MSME Registration, the procedural format for the same was quite hectic and a time-consuming bureaucratic process that used to require the handling of lots of paperwork. However, with the introduction of Udyam Registration, things have changed and to some extent, have improved for medium, small, and micro-enterprises.
- If you own a medium, small or micro-enterprise and you haven’t registered your MSME yet, you should know that on registering your MSME via Update Udyog aadhaar registration, you will be liable to enjoy numerous benefits.
Know more about UAM (Udyog Aadhaar Memorandum)
Udyog Aadhaar Memorandum is the registration form wherein the MSME certifies its existence and provides mandatory information such as the owner’s Aadhar details, bank account details, etc. After submitting this form, an acknowledgment form is released to the registered email of the applicant containing the unique UAN (Udyog Aadhaar Number). As it is a self-declaration form, there’s no need for any supporting documentation.
What Is Udyam Registration
- The main question that several newbie entrepreneurs have in their minds is what Udyam Registration is. If you are having the same question, then you are at the right place.
- Udyam Registration also known as MSME Registration is nothing but a government registration that is provided along with a recognition certificate and a unique number. This is to certify small/medium businesses or enterprises.
- The central motive behind the launch of this facility was to offer a way to the government to provide the maximum benefits to medium or small-scale businesses or industries in India, who are registered via MSME through their Aadhar Card Number.
- The owner, director, or proprietor of the entity will provide his/her 12-digit Aadhar Number. This is a compulsory guideline whether the enterprise or entity is a sole proprietor, an LLP, a Private limited company, or anything else. It should have the recognition certificate provided via the MSME Registration process.
Who Can Get Udyam Registration
Let’s get some things clear! The organizations which are eligible for Udyam Registration are meant to be either in manufacturing or producing or processing or preservation of goods or in providing the services. In other words, Traders who buy, sell, import, or export the goods are not even eligible for applying for Udyam Registration.
But you should know that there are a set of criteria that an entity has to meet to be classified as a medium, small, or micro-enterprise for obtaining the MSME Registration.
As per the current notification,
Types of Enterprises ( for Manufacturing or Service sector, Both)
Micro Enterprises: Investment up to Rs 1 Cr and turnover up to Rs 5 Cr
Small Enterprises: Investment up to Rs 10 Cr and turnover up to Rs 50 Cr
Medium Enterprises: Investment up to Rs 50 Cr and turnover up to Rs250 Cr
Benefits of Udyog Aadhar Registration
After registering their MSME, the applicants will receive the benefits of all the government schemes such as an easy loan, loan without guarantee, loans with subsidized rates of interest, etc.
The applicant will receive financial support for participating in foreign expos to showcase their products.
The applicant will also be eligible for government subsidies.
Registration would facilitate the hassle-free opening of current bank accounts in the name of the business.
It would also allow businesses to apply for government micro business loans and other such related beneficial schemes.
Important things to know
- An entrepreneur having Udyog Aadhar registration will have to mitigate Udyam Registration. There is no need to file for more than one Udyam Registration for more than one enterprise. Any number of activities undertaken by an entrepreneur which includes both manufacturing and service can be specified or added in one registration.
- Udyog Aadhar was introduced in 2015 by the Government of India for the registration of MSMEs. Subsequently, the Government revised the MSME definition and introduced the Udyam Registration portal in 2020 for registering new MSMEs. The Government also stated that all enterprises having Udyog Aadhar Registration need to re-register under the Udaym Registration portal after 1st July 2020 for it to be valid.
An enterprise shall be classified as a micro, small or medium enterprise based on the following criteria, namely: --
(i) a micro-enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
(ii) a small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and
(iii) a medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
Quick Facts about the registration process
The government has organized a full system of Facilitation for Registration Process
An enterprise for this process will be known as Udyam and its Registration Process will be known as 'Udyam Registration'
A permanent registration number will be given after registration.
After completion of the process of registration, a certificate will be issued online.
This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed.
There will be no need for renewal of Registration.
Our single window systems at Champions Control Rooms and DICs will help you in the process.
Registration Process is free. No Costs or Fees are to be paid to anyone.
The UAM registration does not exist anymore. Any individual wishing to obtain MSME Registration must currently apply for Udyam Registration. The Udyam Registration process is like the UAM Registration process. However, now the MSME Registration is completely online and there is no offline registration. All the existing enterprises registered under Udyog Aadhar should register again on the Udyam Registration portal. The enterprises registered under Udyog Aadhar before 30th June 2020 will continue to be valid till 31st March 2021. Thus, MSMEs who have a Udyog Aadhar Certificate need to re-register themselves under the Udyam Registration portal before 31st March 2021.
Questions and answers
What is the Udyog Aadhar Certificate?
Udyog Aadhar Certificate is issued to the MSMEs registered with the Ministry of MSME. The Udyog Aadhar Certificate contains the Udyog Aadhar Number of the enterprise. Now, the enterprises having the Udyog Aadhar Certificate need to re-register and mitigate the Udyam Registration Portal and obtain the Udyam Registration Certificate. Udyam Registration Certificate contains the unique registration number of the enterprise and can receive the benefits provided to MSMEs by the Government of India.
What is the Udyog Aadhar Registration Fee?
Enterprises having Udyog Aadhar Registration need to re-register again for Udayam Registration. There is no fee for mitigating from Udyog Aadhar Registration to Udyam Registration.The registration for MSMEs under Udaym Registration Portal is completely online. There is no fee charged for any registrations under this portal. It is free of cost.
How to follow the Udyog Aadhar Registration Process?
- New MSMEs and those enterprises having Udyog Aadhar can obtain Udyam Registration on the official Government portal of udyam registration.gov.in. There are two options under the Udyam Registration Portal for getting Udyam Registration Certificate. They are:
- New entrepreneurs who have not yet registered as MSME and For those having registration as UAM or EM-II and those having registration as EM-II or UAM through Assisted filing
- The registration process is as follows:
- New MSMEs need to click on the button “For New Entrepreneurs who are not Registered yet as MSME” button on the homepage of the portal and fill the registration form online.
- Entrepreneurs can register their enterprises with or without PAN numbers. They need to provide all the details regarding PAN card for verification, personal information, enterprise details, bank details, and submit the form.
- Once the form is submitted, a successful registration message of the MSME along with a reference number will appear. After verification of registration, the Udyam Registration Certificate is issued to the MSMEs within a few days.
- MSMEs having Udyog Aadhar Registration need to click on the button “For those having registration as EM-II or UAM” or “For those having registration as EM-II or UAM through Assisted filing” shown on the homepage of the portal.
- They need to fill in the registration details, and their registration under the revised Udyam Registration will be complete.
What documents are required for Udyog Aadhar/Udyam Registration?
The Udyog Aadhar/Udyam registration process is entirely online and does not require the uploading of any documents. Only the Aadhar and PAN of the entrepreneur are required to be entered in the registration form.