Introduction
Udyog Aadhar, also known as Aadhaar Udyog, is a crucial identification system designed specifically for businesses in India. It mirrors the Aadhaar system but focuses on providing a 12-digit unique identification number for enterprises. This initiative aims to support the growth of Micro, Small, and Medium Enterprises (MSMEs) by offering various benefits and simplifying the registration process.
What is Udyog Aadhar?
Launched in September 2015 by the Ministry of Micro, Small, and Medium Enterprises, Udyog Aadhar facilitates business operations by providing special benefits such as subsidies and easier access to government resources. With over 87 lakh registrations, Udyog Aadhar is a vital tool for promoting the MSME sector, which constitutes over 95% of India’s industrial establishments.
Udyog Aadhar Eligibility Criteria
Eligibility for Udyog Aadhar registration is restricted to enterprises classified as Micro, Small, or Medium. The criteria for each category are as follows:
1. Micro Enterprise:
- Investment in plant and machinery: Up to ₹1 Crore
- Annual turnover: Up to ₹5 Crore
2. Small Enterprise:
- Investment in plant and machinery: Up to ₹10 Crore
- Annual turnover: Up to ₹50 Crore
3. Medium Enterprise:
- Investment in plant and machinery: Up to ₹50 Crore
- Annual turnover: Up to ₹250 Crore
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Benefits of Udyog Aadhar
Registering your business under Udyog Aadhaar provides the following advantages:
- Access to Government Schemes: Businesses with Udyog Aadhaar registration can avail of various government schemes, subsidies, and incentives meant for MSMEs.
- Easier Loan Approvals: Banks and financial institutions offer lower interest rates and easier loan approvals to registered MSMEs.
- Tax Benefits: Registered MSMEs may receive certain exemptions under tax laws, including direct and indirect tax subsidies.
- Tender Preferences: MSMEs with Udyog Aadhaar get preference in government tenders and contracts.
- Export Benefits: Udyog Aadhaar registered businesses can avail of incentives and concessions related to exports.
- Reduced Fees for Patents and Trademarks: MSMEs are offered reduced fees when applying for patents and trademarks.
- Protection Against Delayed Payments: MSME registered businesses have legal protection against delayed payments from buyers.
Udyog Aadhar Registration Process
Udyog Aadhaar, now known as Udyam Registration, is a government initiative to provide a unique identity to small and medium enterprises (SMEs) and micro-enterprises. This registration simplifies the process of obtaining a certificate for Micro, Small, and Medium Enterprises (MSME). The objective of Udyog Aadhaar is to support these businesses by offering benefits such as easy access to loans, subsidies, and other government schemes.
Here’s a detailed explanation of how you can complete the Udyog Aadhaar registration online:
1. Visit the Udyam Registration Portal
Start by visiting the official Udyam Registration portal at https://udyamregistration.gov.in. This is the official site for MSME registration, and it’s completely free to use.
2. Enter Aadhaar Number
On the home page, select the option for ‘New Entrepreneurs who are not yet Registered as MSME’. Enter the Aadhaar number of the business owner (the applicant). The Aadhaar number should belong to the individual who owns the business or the primary person managing the business.
3. Generate OTP
After entering the Aadhaar number, click on the ‘Validate and Generate OTP’ button. An OTP will be sent to the mobile number registered with your Aadhaar. Enter the OTP received in the given field to validate your Aadhaar.
4. Business Information
After validating your Aadhaar, the system directs you to the Udyog Aadhaar form, where you must provide detailed information about your business. Here’s what you need to fill:
- Owner’s Name: Enter the name of the business owner as per Aadhaar.
- Type of Organization: Select the type of enterprise (e.g., Sole Proprietorship, Partnership, Private Limited, LLP, etc.).
- Business Name: Enter the name of your business or firm.
- Bank Details: Provide your business’s bank details, including the IFSC code and account number.
- Address: Enter the address of the business where business activity of the organization is primarily done, including district, state, and postal code.
- Date of Commencement: Provide the date when your business started operations.
- NIC Code: Select the National Industrial Classification (NIC) Code that best describes your business activity. NIC codes categorize businesses based on the activities they perform, such as manufacturing or services.
- Employee Details: Mention the number of persons employed in the business.
- Investment Details: Enter the investment made in the plant, machinery, or equipment of the business. For MSMEs, this is a critical part of classification.
5. Category of Enterprise
Based on the investment and turnover of your business, the system will automatically determine the category of your enterprise—whether it is Micro, Small, or Medium:
- Micro Enterprises: Investment up to ₹1 crore and turnover up to ₹5 crore.
- Small Enterprises: Investment up to ₹10 crore and turnover up to ₹50 crore.
- Medium Enterprises: Investment up to ₹50 crore and turnover up to ₹250 crore.
6. Final Submission
After filling in all the required details, double-check the information provided, and then click on the ‘Submit and Get Final OTP’ button. An OTP will again be sent to your registered mobile number. Enter the OTP to complete the final submission.
7. Receive Udyog Aadhaar Certificate
After you successfully submit the form, the system generates a Udyog Aadhaar (Udyam) Certificate, which you can download from the portal with the Udyog Aadhaar Number included. This certificate will contain your unique Udyam Registration Number (URN). You will also receive a confirmation of the Udyam Registration Certificate in your email ID.
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How to Apply for Udyog Aadhaar Registration Offline?
Currently, Udyog Aadhaar registration is primarily encouraged online through the official portal. However, if you do not have access to the internet or face difficulties in applying online, you may visit your nearest District Industries Centre (DIC) or MSME facilitation center for guidance on offline registration.
Documents Required for Udyog Aadhar Registration
To register under Udyog Aadhaar, the following documents or information is required:
- Aadhaar Card of the applicant (mandatory).
- Business Bank Account Details (Bank Account number and IFSC code).
- Business Address (including district and state).
- Investment Details (amount invested in machinery or equipment).
- NIC Code (describing the business activities).
How to Print Udyog Aadhar Certificate?
To print your Udyog Aadhar registration certificate:
- Visit the Print Acknowledgement Page: Go to this link.
- Enter Details: Provide your UAM number and registered mobile number.
- Submit: Follow the instructions to obtain your Udyog Aadhar certificate in printed format.
UAM (Udyog Aadhaar Memorandum)
The Udyog Aadhaar Memorandum, or Udyam Aadhar, is the form used to verify the existence of an MSME. It includes essential information such as the owner’s Aadhaar details and bank account information. Udyam Registration, launched in July 2020, has replaced Aadhaar Udyog Registration to simplify the process and enhance user experience.
Udyog Aadhar vs Udyam Aadhar – Key Differences
- Registration Process: Udyog Aadhar requires detailed information and both PAN and Aadhaar, whereas Udyam Aadhar is a self-declaration process requiring only Aadhaar.
- Multiple Registrations: Udyog Aadhar allows multiple firm registrations with one Aadhaar, while Udyam Aadhar restricts registration to a single firm.
- QR Code: Udyam Aadhar certificates feature a QR code for instant verification, unlike Udyog Aadhar certificates.
Conclusion
Udyog Aadhaar (Udyam) registration is essential for small and medium businesses in India to access a wide range of benefits. The online registration process is free, simple, and user-friendly, enabling businesses to formalize their operations and gain access to various government schemes and incentives aimed at promoting growth and development in the MSME sector.
It provides essential support to MSMEs by offering financial benefits and simplifying regulatory processes. With its easy registration process and substantial benefits, it plays a crucial role in fostering the growth of small and medium enterprises in India.