Udyog Aadhaar - Online Registration for MSME

For the country's business class, there are plenty of schemes and initiatives that the Indian government is launching. If you belong to this Industry, you will have to obtain the Udyog Aadhaar or Small-Scale Industry (SSI) registration certificate.

Such a document is meant to assist your small-scale business to utilise numerous government-sponsored schemes and incentives. However, if you have not yet applied for Udyog Aadhaar, you can easily obtain the SSI certificate through the Udyog Aadhaar online application and registration.

In this post, you will find the essential details regarding Udyog Aadhaar and how you can complete the online registration for MSME. Let's find out ahead.

What does MSME Registration Entail?

Micro, small, and medium-sized businesses are registered under the MSME sector. The entities are classified depending upon whether they invest in Manufacturing or the service sector.

According to the MSME data, this sector accounts for nearly half of the total exports, 45% of total industrial employment, and 95% of industrial units that produce more than 6000 goods. The rise of these industries will boost the Economy while also reducing unemployment by employing many unskilled and semi-skilled workers. As per the recent announcement by the Indian government, MSMEs registered under GST would receive a 2% interest subsidy from the government for loans of Rs. 1 crore under the MSME Credit Scheme.

Enterprises Under MSME

As mentioned above, there are three types of businesses under the MSME sector - Small, Micro, and Medium. This classification is based on the initial investment made when the firm or entity was registered.

The MSME can only be used by -

Manufacturing Enterprises

Businesses engaged in producing items for any of the industries included in the Industries Act of 1951's First Schedule are included in this. Manufacturing companies are classified according to the amount invested in plants and machinery.

Service Businesses

These businesses provide services and are classified according to the amount of money they invest in equipment.

Thus, any business entity that meets the above criteria can apply for MSME registration.

Criteria to be an MSME

Based on the following criteria, an enterprise is categorised as a micro, small, or medium enterprise:

• A microbusiness is when an entity has a plant and machinery or equipment investment of less than Rs. 1 crore and a turnover of less than Rs. 5 crores;
• A small business is when an entity has a plant and machinery or equipment investment of less than Rs. 10 crores and revenue of less than Rs. 50 crores; and
• A medium-sized business is when an entity has an investment in plant and machinery or equipment of not more than Rs. 50 crores and a turnover of Rs. 250 crores

Key Points for Creating an MSME Business

If you are thinking of beginning an MSME business, here are some key points that you must keep in mind:

• Anyone who is hoping to start a micro, small, or medium business can use the Udyam Registration portal to fill out a self-declaration form
• There is no need to upload any documents, certifications, or proof
• Upon completing the registration process, an e-certificate titled Udyam Registration Certificate will be issued

What is the Micro, Small and Medium Enterprises (MSME) Udyog Aadhar Number?

After completing the registration with the Ministry of Micro, Small and Medium Enterprises, the MSMEs used to receive a 12-digit Unique identification number (UIN), known as the Udyog Aadhaar or Laghu Udyog. With this UIN, the entities get their due recognition in the industry.

However, now the Indian government has replaced the Udyog Aadhaar with the Udyam. Presently, through the Udyam registration platform, any enterprise that meets the MSME definition can easily complete the Udaym registration for their business.

Who is Eligible for Aadhar Udyog Registration?

Both manufacturing and service-oriented businesses are eligible for the SSI and Udyog Aadhaar certificates. However, some restrictions are mentioned as follow:

• The manufacturing enterprises can obtain the SSI certificate if their investment in plant and machinery falls within the following parameters:

• SSI for service-based industries can be obtained if the investment in equipment is within:

Udyog Aadhaar Memorandum (UAM)

The Udyog Aadhaar Memorandum is a one-page self-certification registration form. In this form, you can disclose business-related information, such as the entity's existence, Bank account data, personal (promoter) data, and other required information.

The government waives the charge for filing the Udyog Aadhaar Memorandum. Following the application submission, a Udyog Aadhaar Acknowledgement will be issued and sent to the email address specified in the UAM, including the unique Udyog Aadhaar Number (UAN). If you already have an Entrepreneurship Memorandum-I, Entrepreneurship Memorandum-II, or both, or a Small-Scale Industry registration, you do not have to file Udyog Aadhaar Memorandum.

Online UDYAM Registration for New MSMEs

New MSMEs and those with Udyog Aadhaar can complete the Udyam registration by visiting the official portal, udyamregistration.gov.in. This portal provides two ways for obtaining an Udyam Registration Certificate, which is as follow:

• New entrepreneurs who haven't yet registered as MSME and the ones who have already registered as UAM or EM-II
• Those who have already registered as EM-II or UAM through Assisted Filing

Here is the online procedure for UDYAM registration for new enterprise:

• Visit the portal's (udyamregistration.gov.in) homepage, click the For New Entrepreneurs who are Not Registered yet as MSME or those with EM-II option
• A new page will open up where you will have to add your Aadhaar number and name
• Click Validate & Generate OTP
• You have the option of registering your businesses with or without a PAN number. To do so, you must provide all PAN Card details for verification and personal information, business information, and bank information before submitting the form
• Once done, a successful MSME registration notice will appear, along with a Reference Number
• You will receive the Udyam Registration Certificate within a few days after verification

How to Migrate to Udyam?

For those who already have the UAM registration, here are the steps to follow for Udyog Aadhar registration:

• MSMEs with UAM Registration should go to the portal's homepage and click the 'For those with registration as UAM'
• Provide your Aadhaar number and validate the OTP
• Complete the registration details under the new Udyam Registration for Udyog Aadhaar download
• The Udyog Aadhaar status can also be checked online from the portal itself

What is the Udyog Aadhar Registration Fee?

Businesses that already have Udyog Aadhar Registration must re-register for Udaym registration. There is no charge for transferring from Udyog Aadhar to Udyam Registration.

MSMEs can apply for Udyog Aadhaar free registration entirely online through the Udaym Registration Portal. There is no price for registering using this portal. It is entirely free.

How to Print Udyog Aadhar Certificate?

• Visit the official site of Udyam Registration, in the homepage, you will find the option for 'Print/Verify'
• Under it, a drop-down option will come, select the first option stating 'Print Udyam Certificate'
• Follow the instructions given on the page and you will be auto redirected to the print the certificate

UAM Online Verification

• Visit the official site of Udyam Registration, in the homepage, you will find the option for 'Print/Verify'

• Under it, a drop-down option will come, select the 5th option stating 'Verify Udyog Aadhar'

• You will be directed to 'Udyog Aadhaar Memorandum (UAM),' follow the instructions for verifying online UAM

  • Enter 12 digit UAM No. (i.e. DL05A0000001)
  • Enter Valid Verification Code as given in Captcha Image
  • Verification Code is case sensitive
  • Click on Verify Button

Conclusion

A large number of new businesses are constantly being formed, and several of the registered companies have huge funds since investors back them up. Through MSME registration, all of these entrepreneurs can also utilise government schemes' benefits. Thus, it is essential to register yourself if not done yet.