Udyog Aadhar was introduced in the year 2015 in order to make things easy for small business owners in order to get their business registered under MSME or Micro Small Medium Enterprise.
Traditionally it used to take a lot of time and paper-work to get the business registered but Udyog Aadhar scheme has revolutionized the scenario for small, medium and micro-enterprises.
Registering on the UAM (Udyog Aadhar Memorandum) brings about a lot of additional benefits apart from the business being registered on a government platform which gives a unique identification to it. Prior to the launch of the UAM system, EM-I/II existed which is Entrepreneur Memorandum. Most of the states used to rely on the National portal and only a few had their own.
Also, there were some states which used to rely on paperwork done manually. With the introduction of UAM, things have changed to a great extent.
WHAT IS UDYOG AADHAR?
Udyog Aadhar is a government registration platform that enables small businesses to register themselves and the reap the associated benefits. Like normal Aadhar number, it also provides with a unique identification number to the establishments and a certificate of recognition. The unique number certifies the registration of the business.
Its main benefit is the reach out with benefits to the small, micro and medium businesses with additional benefits which they otherwise remain deprived of. To register a business the 12-digit Aadhar number of the proprietor, director or owner is required. Irrespective of the type of business which may be an LLP, sole proprietor, Pvt. Ltd. Company or any other, it must possess the recognition certificate via MSME registration process. It is a totally online process and free of cost. With registration, you can enjoy benefits like easy and fast loan approvals, government subsidy, etc.
WHO SHOULD GET UDYOG AADHAR?
Any undertaking which may be:
1. Hindu undivided family
3. One-person company
4. Partnership firm
5. Production company
6. Limited company
7. Private limited company
8. Limited liability partnership
9. Cooperative society
10. Any other association of persons or undertaking
Should go for Udyog Aadhar registration under the MSME portal. The 12-digit Aadhar number of the concerned person (director, proprietor, etc) and the bank details would be required in order to do so.
Note: there are certain criteria which need to be met in order to classify and register oneself as MSME. Please check in the MSMED Act 2006 for eligibility.
UDYOG AADHAR REGISTRATION PROCESS
Step 1: Visit the official Udyog Aadhar website at https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx
Step 2: Key in your personal details like 12-digit Aadhar number, bank details, social category, etc. an OTP will be generated on your Aadhar linked mobile number. Enter the OTP in order to verify.
Note: Udyog Aadhar is a completely online process which requires the 12-digit unique Aadhar number of the concerned individual. In case you do not possess an Aadhar card or are not tech savvy, you get yourself registered at the General Manager (GM), District Industries Centre’s (DIC) office physically.
Step 3: Enter the details regarding enterprise/ entity with which you want your customers or the general public to recognize the enterprise or entity. There is a unique Udyog Aadhar for each enterprise hence if you are someone who possesses multiple enterprises, then you need to file separate UAMs. This can be done as Enterprise-1 and Enterprise-2 in the form.
Select from the drop-down menu the ‘Type of Organization’.
Step 4: Enter the correspondence details which would be the complete postal address of the enterprise/ company/ entity. This includes information regarding pin code, state, district, email address, mobile number, etc.
Step 5: Fill in the carry forward information which is the date of operation of your enterprise. Also, the information regarding previous registrations through EM1, EM2, and SSI with UAM registration number will be required here.
Step 6: Enter your bank details like the bank account number, IFSC code, and address of the bank branch where the account is located. If you do not have the IFSC code, check it on the bank’s official website or you can look here https://bankifsccode.com/
Step 7: Classify your enterprise. In this step, you need to specify the mainline operation of your enterprise which may be ‘Service’ or ‘Manufacturing’. in case your enterprise serves a combination of both, choose the one which has more weight. For example, if 70% of your operations are manufacturing and 30% are related to service, then you should go for ‘Manufacturing’ as the classification option.
Step 8: Specify the total investments you have made in your enterprise along with the manpower number i.e. the total number of workers employed. The amount should be depicted in lakhs.
Step 9: Indicate the DIC (District Industries Centre) from the drop-down menu and accept the declaration. This will generate an acknowledgment number.
WHAT IS THE LIST OF DOCUMENTS REQUIRED FOR UDYOG AADHAR REGISTRATION?
Following are the documents that you will require in order to register yourself for UAM:
1. Name and Aadhar number of business owner
2. Social category proof document (SC, ST, OBC)
3. Enterprise or organization name
4. Previous registration details
5. Organization type
6. Present address
7. Bank account details
8. Nation industries Classification Code (NIC code)
9. Total manpower employed at the organization
10. Firm operations
11. Mobile number and email address of the entrepreneur
12. Total investment made in lakhs and PAN number
HOW TO EDIT OR UPDATE UDYOG AADHAR DETAILS?
If you are someone who has already gained a Udyog Aadhar and wish to update the details furnished, there is a simple process to do so. Go to the update Aadhar link https://udyogaadhaar.gov.in/UA/UA_EntrepreneurLogin.aspx
Here once you enter your name, Aadhar number and the OTP generated on the registered mobile number, you will be able to update or edit the Udyog Aadhar details.
BENEFITS OF UDYOG AADHAR
Apart from the enterprise being recognized and registered under a government portal, there are several other benefits to Udyog Aadhar. Have a look;
1. Excise exemption
2. Direct tax laws exemption
3. Fee reduction in patent filing and trademarks
4. Credit guarantee scheme
5. Eligibility for government scheme benefits like a fast and easy loan, low-interest rate loans,
guarantee-free loans, etc.
6. Government support for foreign business expos
7. Government subsidies
8. Discounted electricity bills
9. Exemption on government tenders.
10. Easy current bank account opening in the name of the business
Picture credits: Indiamart