The MSME sector in India is on the rise and is crucial for the economy’s growth. The sector’s share is attributed to around 30% of the nominal GDP. In the past few years, the government has launched policies to further this growth by easing out loan options, Productivity Linked Incentive schemes, promoting start-ups, building financial literacy among MSMEs, and more and Udyog Aadhaar Registration is a way to boost small-scale businesses. Earlier, the SSI or MSME registration process used to be a time-taking paperwork-heavy process. The Udyog Aadhaar registration was launched in 2015 to simplify and streamline the entire process. Not only that, enterprises that register with Udyog Aadhaar are entitled to additional benefits offered by the government.
What is Udyog Aadhaar?
Like individual Aadhaar numbers, Udyog Aadhaar is a 12-digit UIN or Unique Identification Number that the government allots to the MSME enterprises to ease the enterprise registration process. Currently, the Udyog Registration has moved to the Udyam Registration portal. Enterprises that already have the Udyog Registration also have to re-register under the Udyam Registration portal to be eligible to obtain the benefits. Enterprises registering for Udyog Aadhaar are enrolled as per their size. Here’s a brief view of how Udyog Aadhaar enterprises are classified based on their investments in plants & machinery.
|Enterprise Classification||Turnover Threshold||Investment Threshold|
|Micro-Enterprise||upto Rs. 5 Cr||upto Rs. 1 Cr|
|Small-Enterprise||Rs. 5 Cr to 50 Cr||Rs 1 Cr to 10 Cr|
|Medium-Enterprise||Rs. 50 Cr to 100 Cr||Rs. 10 Cr to 20 Cr|
Udyog Aadhaar Registration Process
The Udyog Aadhaar registration is done online through the Udyam Registration portal. The process is simple and takes just 15-30 minutes to complete.
Here are a few points to note before registration:
- The entire registration is online and free of cost.
- You will need an uninterrupted internet connection throughout the registration process. You can explore Airtel business broadband to get high speed connectivity throughout the process.
- Udyam is a term that refers to enterprises registering on the site.
- After the registration process is complete, enterprises will be issued a permanent registration number and a certificate known as – Udyam Registration Certificate.
- The Certificate will have a dynamic QR code that can be scanned to access the registration details on the portal.
- MSME registration is a paperless process based on self-declaration and does not require uploading any documents.
- Enterprise’s turnover and investments information are directly sourced through the government’s Income Tax and GSTIN systems using their PAN and GST details.
You can find detailed information about the registrations and Udyam Aadhaar in this document.
Here’s a step-by-step guide for the registration process.
- Visit the Udyam Registration portal. There are different sections for
a.) For new enterprises not registered as MSME
b.) Enterprises that have already registered are migrating to Udyam Portal.
- If you are a new registrant, click the For new enterprises link and enter your Aadhaar number. You will receive an OTP on the phone number linked to your Aadhaar for validation.
- Once you validate your Aadhaar number, you will be required to choose the type of organisation and fill out your PAN details.
- After validating your PAN details, you will be taken to a form where the entrepreneurs are required to fill in their personal and organisation details.
- Once you fill out the form, you will be redirected to the Submit and get the final OTP section. After you submit the OTP, the registration will be complete. On completion of the registration process, you will receive a message of successful registration with a reference number. Keep the reference number safe for any further inquiries.
- The form will get verified a few days after you submit it. Once your form is verified, the Udyog Registration Certificate will be issued.
What is Udyog Aadhaar Memorandum?
The Udyog Aadhaar Memorandum (UAM) is a single-page registration form. The MSME enterprise certifies their business existence by providing mandatory information, including the owner’s Aadhaar details and bank account details, and more. Once this form is submitted, you will get an acknowledgment form on the email id linked to the UAN. This form replaces the multiple forms that enterprises needed to submit earlier. Filling UAM is mandatory to receive the Udyog Aadhaar Number.
Re-registration process for people who already have a UAM
Enterprises that already have registered a UAM should click one of these options:
- For those having registered as UAM
- For those already having registered as UAM through Assisted filing. Once you click any of these, follow the below steps:
- Fill in the Udyog Aadhaar Number and select the ‘Get OTP’ option.
- You will see the option to get OTP on the Mobile or Email linked to the Udyog Aadhaar number. Choose the convenient option and click the ‘Validate and Generate OTP’ button.
- Fill in your OTP and enter details in the MSME registration form to complete the process.
Documents required to get Udyog Aadhaar Number
With the digitisation of The Udyog Registration process, while there are no documents that need to be uploaded, you must keep the below-mentioned documents handy to enter the required details while filling out the form:
- Aadhaar Number: The twelve-digit UID number of the owner. If it is a proprietary firm, the UID of the Managing Director of the firm will be required.
- Promoter’s Name: Name of the Applicant as per the Aadhaar card.
- Category: Details of the social categorisation such as General, ST, SC, OBC, and you might need to produce documentary proof.
- Business Name: Name of the entity under which the business functions. One MSME can have multiple businesses registered on a single Aadhaar card.
- Type of Organisation: You will have to keep proof of documentation to determine the business status, which can be – Partnership firms, Limited liability partnerships, Cooperative institutions, etc.
- Business Address Proof: The business’s postal address and contact details like phone number and email id for further communication.
- Date of commencement of business
- Bank details: Keep your bank account passbook handy for filling out bank details.
- National Industrial Classification (NIC) Code: You will have to have a National Industrial Classification Handbook accessible to fill in the details of the NIC code.
Benefits of Udyog Aadhaar Registration for MSMEs
The Udyog Aadhaar Registration number allows MSMEs to avail multiple benefits including:
- Leverage all the MSME government schemes like getting easy loans without the requirement of guarantees, subsidised rate of interest on loans, and more.
- Opportunity to get financial support to participate in foreign expos and expand their business.
- Eligibility to get government subsidies.
- Udyog Aadhaar Registration will help enterprises to easily open current bank accounts for their business.
- The applicant will also be eligible for government subsidies.
- Allow MSMEs to apply for government micro business loans and more such beneficial schemes.
MSMEs are critical for the Indian economy’s growth story, and the Udyog Aadhaar Registration is a step toward helping them streamline their registration process in a paperless and simple way. More than 80 Lakhs MSMEs have registered on the portal, and the count is expected to grow as the new portal https://udyamregistration.gov.in/ has simplified the process further.
In the digital economy, infrastructures like the Udyam portal are being built to help the MSME sector flourish. Internet is the basic foundation for MSMEs to run and grow their business. You can explore high-speed internet leased line connection that are are well-suited for businesses of every scale. Get a custom Airtel connection for your business today and empower your business with uninterrupted and high-speed internet.