MSMEs (Micro Small and Medium Enterprises) have been an aid to foster country’s growth since years. Other than being an employment generator, the sector also yields to industrialize major rural and backward areas. Government to encourage business in this sector, have recently implemented the Udyog Aadhaar Scheme to which every small or medium sized trader or entrepreneur on complying with the registration can avail benefits of upcoming central or state run schemes.
To ensure better subsidies and exemption related benefits, the Government of India announced the MSME Development Act in 2006 according to which every firm under definition of MSME was to apply for registration. But being obsessed by tiring paperwork & former policies, the Ministry later in 2015 decided to put an easy registration facility with a unique identity number as MSME Udyog Aadhaar, to ensure wide coverage of MSMEs under government algorithm.
What is Udyog Aadhaar Memorandum (UAM)?
For easy registration of running MSME Units , Udyog Adhaar ( Adhaar Identity of Business units) was introduced .
For MSMEs, A UAM is a one page registration form that certifies their existence, bank details, owner, promoter details and other required information. After submission of UAM on official portal of Udyog Adhaar, the department issues an acknowledgment number to reported mail of applicant along with a Unique Udyog Aadhaar Number.
Note: As UAM is a self declaring document, it does not require any supporting document to be uploaded while applying for UA (Udyog Adhaar). But it has been said that for confirmation of details submitted, by applicant any official from state or central authority can ask to provide related documents whenever required.
How to Apply For Udyog Adhaar ?
Details and Documents Required for Udyog Aadhaar registration
- Aadhaar Number
- Name of the owner of business (Name as mentioned on Adhaar card)
- Social Category – Proof required in case of SC, ST, and OBC.
- Name of Organization
- Previous Registration Details
- Type of Organization
- Postal Address of Enterprise
- Current Account Details
- Activities of Firm
- National Industrial Classification Code (NIC Code)
- Number of People Employee
- Date of Commencement of Business
- Details of Nearest District Industry Centre (DIC Code)
- Mobile Number of Entrepreneur
- Email id of Entrepreneur
- Amount of Investments made by entrepreneur in his organization
- PAN Number
How to Apply ?
Step 1 : Go to http://udyogaadhaar.gov.in .
Step 2: Enter Aadhaar Number and Related details of the entrepreneur associated with MSME and click on ‘Validate and Generate OTP ‘(One Time Password).
Step 3: Put up the OTP Received in the blank column and proceed for next step. If you didn’t received OTP then apply for linking your mobile number with Aadhaar.
Step 4: On registration page enter owner and business details, along with bank and NIC and DIC Code.
Step 5: Once all details are submitted, verify the information and click on Submit button. An OTP would be generated on the number registered. Verify the OTP with Captcha code required.
Step 6: An acknowledgment number is then generated by department which is mailed to applicant which can be used for future references.
Benefits of Udyog Aadhaar Registration
- For facilitating easy opening of Current Bank Account in name of business.
- For applying government micro business loans and related beneficial schemes.
- For getting easy government assistance in foreign Exports and tenders issued.
Q 1 : What are the salient features of Udyog Aadhaar registration ?
A : Salient features of Udyog Adhaar are as follows :
- One can register online any time.
- No fee has been specified for Udyog Aadhaar Registration
- No critical documentation required.
- One can apply for more than one Udyog Adhaar.
Q 2 : Has EM-I/II been replaced with UAM ?
A : To popularise filing of UAM on MSME portal , the filing of EM-I/II by State /UTs would be discouraged as per notification dated 18-09-2015.
Q 3 : How to Select the NIC code of the services provided by enterprise ?
A : After validation of Aadhaar with OTP and required information , the NIC code can be selected from the three staged drop down list made available to user .
View Comments (2)
Nice Article bt let me know Udyog Aadhar Registration is enough for opening a current bank account. i want to register my firm with the udyog aadhar and need a current bank account, even also inform me there is any relexation in the tax due to Udyog Aadhar
certain banks to open the current bank account on this registration.