Udyog Aadhaar — Udyam Registration

Udyog Aadhaar is a 12-digit Unique Identification Number for businesses. This was introduced by the Government of India in 2015 for small and medium enterprises during the registration of business. This alternative was introduced to ease the heavy paperwork involved in registering a business. Previously, anyone who wished to register a business would have to go through SSI Registration or MSME registration and file 11 different kinds of forms.

However, the introduction of Udyog Aadhaar has reduced the paperwork to just two forms- Entrepreneur Memorandum-I and Entrepreneur Memorandum-II. The process is to be completed online and is free of cost. Small and medium industries registered with Udyog Aadhaar will receive several benefits introduced by government schemes like subsidies, loan approvals, etc.

Udyog Aadhar Registration Process

The registration process for Udyog Aadhaar is free and can be done by following the simple steps mentioned below:

• Go to udyogaadhaar.gov.in
• Enter your Aadhaar number in the ‘Aadhaar number’ section
• Enter your name in the ‘Name of Entrepreneur’ section
• Click on Validate
• Generate OTP
• Enter OTP received on your registered mobile number
• Fill required fields like ‘Name of Enterprise’, Type of Organisation, Bank Details
• Verify all entered data
• Click Submit
• You will now receive another OTP number on your registered mobile number
• Enter OTP
• Fill Captcha code
• Click Submit

Udyog Aadhaar Memorandum (UAM)

The Udyog Aadhaar Memorandum is a registration form where an MSME provides a proof of its existence with details like the owner’s Aadhaar details, bank account details and more. Once the form is submitted, an acknowledgement form is sent to the applicant’s registered email ID containing a unique UAN (Udyog Aadhaar Number).

This is a self-declaration form and does not require supporting documentation. However, remember that if central or state authority may ask for supporting documentation based on their discretion.

Benefits of Udyog Aadhaar

1. Collateral-Free Loans

You can get Collateral-free loan or mortgage by registering with Udyog Aadhar.

2. Tax Exemption and Lower Interest Rate

Udyog Aadhaar provides tax exemption of direct and lower interest rate.

3. Patent Registration

Note that Udyog Aadhaar registration also provides the benefits of patent registration with 50% available grant.

4. Subsidies, Concession and Reimbursement

You can avail government subsidies, electricity bill concession, barcode registration subsidy and reimbursement of ISO certification. It also provides subsidy on NSIC performance and credit rating if you have an MSME registration.

Udyog Aadhar Eligibility Criteria

Companies registered for retail and wholesale are not eligible under Udyog Aadhar registration. Other eligibility criteria are mentioned below:

Documents Required for Registration

The documents required for registration are mentioned below:

• Aadhar Number (Your twelve-digit Unique Identification Number)
• Name of Business Owner (Your name as mentioned on aadhaar card)
• Category (General/ST/SC/OBC)
• Name of Business
• Organisation Type (Proprietorship, Partnership form, hindu undivided family, Private Limited Company, Co-Operative, Public Company, Self Help Group, LLP, Others)
• Business Address
• Business Bank Details
• Previous Business Registration Number (If any)
• Date of Business Commencement
• Business’ Key Activity Area
• National Industrial Classification Code (NIC)
• Number of Employees
• Details of Investment in Plant/Machinery and Equipment
• District Industry Center (DIC)

Important Points About Udyog Aadhaar

• Udyog Aadhar is known as Udyam Registration as of 1st July 2020
• Udyog Aadhaar Certificate is provided as a recognition certificate with Udyog Aadhar
• You can file more than one Udyog Aadhar with the same Aadhaar number

Conclusion

Udyog Aadhar is a great and simplified way of registering your business. It has truly brought in much ease to the business world with the online process. You can avail Business loans and other government subsidies, a lower rate of interest, rebates on tariffs with Udyog Aadhaar. Visit the official website set up by the government of India for more details. .