Introduction of Udyog Aadhaar
Udyog Aadhaar registration is a key to stand you in the business world. The digital India campaign brought about a revolution in every industry. The paperwork which used to take months to complete can now be verified in a matter of hours. One can say that with the introduction of online portals, the issue of bulky paperwork has been resolved. One such facility is the introduction of Udyog Aadhaar. It is a platform for small scale businesses which helps in easing out various processes. Before registering, it is important to know what Udyog Aadhaar really is.
About Udyog Aadhaar
Businesses require registration with the government according to their scale of business. Similarly, medium and small scale industries too need registration under Micro, Small, and Medium Enterprises (MSMEs). Before Udyog Aadhaar, the procedures used to be hectic and bulky while being time-consuming and the procedure used to be carried out offline only. With the introduction of Udyog Aadhaar, it has become possible online too. Udyog Aadhaar or Aadhaar for Business is a 12-digit Government Identification unique number which the Ministry of MSME provides. It comes under Ease of Doing Business with the main motif of providing simplified procedural format for medium and small scale industries. For those who own an MSME, registering the enterprise via Udyog Aadhaar MemoranduSm (UAM) will help avail countless benefits.
Udyog Aadhaar Registration
There are two ways of registering for Udyog Aadhaar: Online and Offline registration.
- Online Registration: The Ministry of MSME came up with a one page Udyog Aadhaar form which can be filled online. It is free of cost, paperless, and provides instant registration. Steps for online registration are:
- Go to Udyog Aadhaar homepage: https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
- Enter the individual Aadhaar number of applicant in case of a partnership. In case of a company, the Aadhaar number of the authorized signatory applicant should be given.
- On submitting the form, you will receive an OTP on the registered mobile number linked with the Aadhaar card. Enter that OTP and proceed further to filling the form.
- You will need the personal information of the applicant while filling the Udyog Aadhaar form. These may include – Aadhaar number, name of owner (and then click on ‘Validate Aadhaar’), social category, gender, physical fitness, name of enterprise, type of organization, date of business commencement, PAN number, location of plant, previous registrations, Bank Account details, major area of business activity, NIC code, number of employees, investment in machinery/equipment. DIC, etc.
- Upon filling on the details, check the form for any mistakes and click on ‘Submit’.
- You will then receive an OTP on your registered mobile number which you will be asked to enter.
- Then enter the code on the screen for final submission of the form and your online registration will be complete.
- Offline Registration: The Udyog Aadhaar registration can also be done offline by following the steps below:
- Apply for an Aadhaar card if you don’t have one.
- Until reception of your Aadhaar card, the Udyog Aadhaar application will be made to the District Industry Centre (DIC) or MSME-DI.
- You will be required to submit the following documents to DIC or MSME-DI: Aadhaar Enrolment ID slip or a copy of its request made for enrolment center, and any valid address proof.
- Fill out the physical form carefully.
- Submit the duly filled form to DIC or MSME-DI, and your registration will be complete.
Upon submission you will get an acknowledgement slip for successful submission of form. Later, you will receive a certificate with your Udyog Aadhaar number printed on it online, which can then be printed.
Udyog Aadhaar Memorandum (UAM)
Udyog Aadhaar Memorandum (UAM) is a free of cost one-page self-declaration registration form so as to enable the MSME to self-certify its existence and other details required. Upon form submission, the Udyog Aadhaar Acknowledgement is mailed to the email address provided by the applicant. This email will contain the unique Udyog Aadhaar Number (UAN). One Aadhaar number can file numerous UAM.
Any existing MSME which has already filed Entrepreneurship Memorandum-I and/or II or holds the registration for Small Scale Industry before the MSME Development Act, 2006 came into force, is not required to file a UAM, but is allowed to upon desire.
UAM can easily be verified online by following these simple steps:
- Go to the official UAM site: https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
- Enter your UAM number.
- Enter verification code which is sent to your registered mobile number.
- Lastly, enter captcha and click on ‘Verify’ for Udyog Aadhaar verify.
Advantages of Udyog Aadhaar
Udyog Aadhaar registration has opened doors to various benefits for MSMEs. It has most importantly eased out the procedures of carrying out their businesses. Some of these advantages are:
- Immediately upon registration, these enterprises can enjoy the perks government has in store for them.
- Udyog Aadhaar makes MSMEs eligible for various government schemes such as loan without guarantee, easy loan, loan with low interest rates, collateral-free loan, etc.
- If there is a delay in payment, the enterprises will have the right to stay protected against it.
- Stamp duty and registration fees are waivered for these enterprises.
- They can enjoy several direct tax exemptions.
- Registering with MSME will get them financial support from government for foreign export.
- Doors to government subsidies like, subsidies on NSIC performance and credit ratings, subsidy under CLCSS scheme for technology upgradation, subsidy on patent registration, IPS subsidy, etc. will open.
- The enterprises will also enjoy the right to reimburse payment made for obtaining ISO certification.
MSMEs are playing a major role in the overall growth of the economy. It therefore becomes important that these enterprises are given their comfort to function smoothly and achieve their utmost potential. Launching of Udyog Aadhaar has provided them with facilities which help save time and invest it in the growth of these enterprises towards economic stability. The subsidies and rights provided by the government prove that Udyog Aadhaar is a service which will further help MSMEs to comfortably establish and maintain their businesses so as to facilitate economic growth at a much faster pace.