Background: The Udyog Aadhaar is a unique identification number provided by the Ministry of Micro, Small and Medium Enterprises, Government of India for small and medium businesses. The Udyog Aadhaar was introduced in an effort to simplify the procedural formats that entrepreneurs had to go through in order to register their business. Udyog Aadhar offers numerous benefits to MSMEs under the MSMED Act 2016 like collateral free loan from the bank, waiver of stamp duty and registration fee, exemption under direct tax laws, concession in electricity bills and exemptions while applying for government tenders, to name a few. The previous article by Vakilsearch addressed an important question, ‘Can sale deed be executed by Power of Attorney?’ This article explains the online Udgyog Aadhaar registration process.

Introduction

The empowerment of digital India brought an uprising in every industry. The countless hours that people would spend in paperwork, can now be done in a fraction of time.

The vital implementation and introduction of Udyog Aadhaar is an important addition to MSME. It is a basic platform for small scale businesses to help ease out various processes.

Let’s understand Udyog Aadhaar in detail:

About Udyog Aadhaar

Just the way businesses require to be registered with the government depending on their scale of business; likewise, medium and small scale industries are expected to register under micro, small and medium enterprises (MSMEs).

Before the introduction of Udhyog Aadhaar, this process used to be lengthy, time-consuming and offline. Now it is online too. Udhyog Aadhaar is a 12 digit government identification exclusive number which is provided by the Ministry of MSME. It has come into being, to bring forth ease of working and simplified procedures format for medium and small scale organizations. There are countless benefits and business owners who register their business here can avail them.

Registration process

There are two modes of registering Udyog Aadhaar – online and offline.

Online registration: The Ministry of MSME has a one-page Udyog Aadhaar registration form which can be filled online. It is paperless, zero costing and offers an instant registration.

Below mentioned are the steps for online registration:

1. Visit the Udyog Aadhaar website.
2. Enter the valid details of the individual’s Aadhaar number in case of a partnership. In the case of a company, the Aadhaar number of the authorized signatory applicant should be given.
3. On submitting the form, you will receive an OTP on the registered mobile number linked with the Aadhaar card. Enter that OTP details and proceed further to filling the form.
4. The personal information of the applicant will be required while filling the Udyog Aadhaar form. It must include – Aadhaar number, name of the owner (then click on ‘validate Aadhar’), social category, gender, physical fitness, name of the enterprise, type of organization, date of business commencement, PAN number, location of business, previous registration, bank account details, major area of business activity, NIC code, number of employees, investment in machinery/equipment, DIC, etc.
5. Upon filling all the details, go through it again to check for any mistakes and then click on ‘Submit’.
6. An OTP will be sent to your registered phone number which needs to be entered.
7. Enter the code on the screen for the final submission of the form and the online registration will be complete.
   
   

Offline registration: The process to apply for an Udyog Aadhaar can also be done offline by following the below mentioned steps:

1. Apply for an Aadhaar card if you do not have one.
2. Until you receive your Aadhaar card, the Udyog Aadhaar application can be made to the District Industry Center (DIC) or MSME-DI.
3. You will be expected to submit the following documents to the DIC or MSME-DI: Aadhaar Enrollment ID slip or a copy of its request made for enrollment and any valid address proof.
4. Fill out the physical form carefully and double check for errors.
5. Submit the duly filled form to the DIC or MSME-DI, and your application for registration will be complete.
   
   

Upon submission, you will receive an acknowledgement slip for a successful submission of the form. Later, you will receive a certificate with your Udyog Aadhaar number printed on it online, which can be further printed.

The vital implementation and introduction of Udyog Aadhaar is an important addition to MSME. It is a basic platform for small scale businesses to help ease out various processes.

Udyog Aadhaar Memorandum (UAM)

Udyog Aadhaar Memorandum (UAM) is a free one-page self-declaration registration form. Upon form submission, the Udyog Aadhaar Acknowledgement is mailed to the email address given by the applicant. This email will state the exclusive Udyog Aadhaar Number (UAN). One Aadhaar number can file numerous UAM.

All existing MSMEs who have already filed for Entrepreneurship.

Memorandum – I/II or hold the registration for a small scale industry before the MSME Development Act, 2006 came into being, does not require filing a UAM but is allowed if desired.

Verification of UAM

The process to verify the UAM can be easily done by following these steps:

1. Visit the official UAM website 
2.  Enter your UAM number.
3. Enter the verification code which is sent to your registered mobile number.
4. Enter the captcha and click on ‘Verify’.
   
   

 Benefits of Udyog Aadhaar

• Businesses can explore the various perks that the government offers.
• Udyog Aadhaar makes MSME eligible for a variety of government schemes such as loan without guarantee, easy loan process, low-interest rates, collateral-free loan and many more.
• In case of a delay in payment, the enterprises have a right to stay protected.
• Waiver of stamp duty and registration fees.
• Various direct tax exemptions.
• Financial support from the government for foreign export.
• Additional government subsidies like NSIC performance and credit rating, subsidy under CLCSS scheme for technology boost, subsidy on patent registration, IPS subsidy and many more opportunities open.
  
  

Conclusion

The launch of Udyog Aadhaar brings forth opportunities in abundance. It gives the freedom for these enterprises to function smoothly and achieve their utmost potential. Most importantly, adding to the growth of the nation’s economic growth and advancement.

Looking for more articles on Legal and Compliance? Checkout our other articles:

Having these legal documents can give your SME its best chance at growth

Why SMEs should get on a sound legal footing

Benefits of MSME registration: Udyog Aadhar

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