Online Udyog Aadhaar (SSI/ MSME) Registration
Udyog Aadhaar or MSME license can be obtained by the MSME organization to get various benefits, subsidies, and schemes offered by the Government of India.
Udyog Aadhar – Eligibility, Registration Process and Importance
With more than 50 million business units and consist of over 93% of the industrial organization in India, the Small, Medium Enterprise sector is the root of our Country’s economic growth. In fact, it is accountable for 45% of the total Country manufacturing output. To encourage the efforts of this SME sector, the Ministry of Micro, Small and Medium Enterprises of India, in co-occurrence with the Government of India, launched the registration of Aadhaar Udyog facility. If you are wondering, ‘What is Aadhaar Udyog?’, the answer is straightforward: It is a pinpoint system, similar to Aadhaar Card, but expressly for businesses organization. As an MSME/SME, you can enjoy exclusive benefits through subsidies issued by the government of India as its primary goal is to promote the growth of all businesses registered.
Below motioned Explanation is all you need to know about Aadhaar Udyog registration and its benefits.
Udyog Aadhar Eligibility
Business enterprises that are grouped on the basis of their investment in plant and machinery (as per the table below) are eligible to apply for an Aadhar Udyog registration.
- Manufacturing Sector
- Service Sector
Up to Rupees. 25 lakhs investment in plant and machinery
Up to Rupees. 10 lakhs investment in equipment
Up to Rupees. 5 crore investment in plant and machinery
Up to Rupees. 2 crores investment in equipment
Up to Rupees. 10 crore investment in plant and machinery
Up to Rupees. 5 crores investment in equipment
Aadhar Udhyog registration process & free
It is crucial to note that to register your organization, you must have your Aadhaar card information at your hand. If you do not have your Aadhaar card, visit an Aadhaar card enrolment center and apply for it. Upon receiving the aadhar card, here is the process to follow.
Log on to the official web portal by visiting https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx.
Enter your Aadhaar card number and name mentioned in it in the section ‘Aadhaar Number’ and ‘Name of Entrepreneur’.
Check the button and then click on ‘Validate & Generate OTP’.
- Enter the OTP received on the associated mobile number.
- Upon successful verification, you will be redirected to the next process.
- Fill in all the appropriate fields like ‘Name of Business Enterprise’ and ‘Type of Business Organization.’ (Be attentive while filling column ‘National Industry Classification Code’ & ‘Major Activity.’)
- Upon successful completion, reassess the data to ensure that there are no errors left.
- Click on the ‘Submit’ button.
- You will again receive OTP on your registered phone number.
- Enter it carefully and click on the ‘Submit’ button to complete the filing of the application.
It is crucial to know that there are not any fees for Aadhaar Udyog & you can print your Aadhaar Udyog certificate only upon registration.
As you’ll notice, the Udyog Aadhaar application process is simple and easy to follow.
UAM (Udyog Aadhaar Memorandum Number)
Udyog Aadhaar Memorandum Number (UAM) is a one-page form for registration under which, as an MSME registration granted, you can self-verify your organization’s existence, bank accounts details, promoter/owner’s Aadhaar Card details and other needed information’s. There is no fees for filing the Aadhaar Udyog Memorandum. Post form submission, Aadhaar Udyog Acknowledgement will be generated and mailed to the registered email address provided in the Unique UAM Number, which would contain unique Aadhaar Udyog Number (UAN).
Enterprises which have already Entrepreneurship Memorandum-I or Entrepreneurship Memorandum-II or both, or the holders of SSI registration, before the MSME Development Act came in force, will not be needed to file Aadhaar Udyog Memorandum. As there are no barriers to filing multiple UAMs using the same Aadhaar Card Information, enterprises can submit the same if they desire too.
As the Aadhaar Udyog memorandum is a self-declaration application, there isn’t any need to submit additional supporting documents attached. However, central or state governments can ask for documentation as proof of the information, and so, here are the list documents you should have to keep ready.
Documents required for Aadhaar Udyog registration
When registering for Udyog Aadhaar, the documents required are as follow:
- Copy of Aadhaar Card
- Applicant Category
- Organization Name
- Organization Types
- Details of Bank
- Main activity
- Industrial Classification code
- Number of employees
- District Industry Centre (DIC)
- Date of commencement
There are few benefits to registering your business for Udyog Aadhaar. They are as follows.
- Access to loans with none guarantee and at subsidized rates
- Access to support for participating in foreign expos
- Access to exclusive government subsidies
- Ability to use for micro-business loans and other related schemes
- Easier access to government provisions for businesses
- ll these benefits are vital to an enterprise as they assist you access capital and luxuriate in government aid. Additionally, you’ll couple the advantages of Aadhaar Udyog with a lucrative commercial loan to ascertain even more significant business improvements. Whether you’re looking to enhance your infrastructure, upgrade plant & machinery, or expand your organization.
Benefits of Registration as MSME or Udyog Aadhar
EASY AVAILABILITY OF LOAN
Every Micro, Small & Medium Enterprises whether in the manufacturing industry or service industry is eligible to collateral or mortgage-free loan from Bank for an amount up to Rs. 1 Crore through SIDBI under Credit Guarantee Scheme.
GOVERNMENT PROCUREMENT PRIORITY
Central government or state government has been instructed to extend priority treatment to Micro, Small & Medium Enterprises while acquiring goods or services for the utilization of goods or services.
LOW-INTEREST ON OVERDRAFT
While taking bank overdraft facility from a bank, Micro, Small & Medium Enterprises has a reason to smile as Banks need to offer 1% less interest rate on the overdraft facility extended to the Micro, Small & Medium Enterprises which is registered with Udyog Aadhar.
To registered Micro, Small & Medium Enterprises can take a concessional rate of electricity for their business unit by making an application along with the certificate issued after registration as Micro, Small & Medium Enterprises to the electricity department.
SPEEDY RECOVERY OF DUES
The Micro, Small & Medium Enterprises is needed to be paid as per the terms between parties or within 45 days if there is no agreement or term between them. Failure entitles the Micro, Small & Medium Enterprises for an interest, which is 3 times the bank rate.
REBATE IN TAXES
Micro, Small & Medium Enterprises registered under the Micro, Small & Medium Enterprises Development Act, 2006, is entitled to many tax incentives & exemption both under the Direct Taxes and Indirect Taxes, including Goods and Service Tax such as capital gain subsidy schemes under income tax act 1961.
50% DISCOUNT ON IP PROTECTION
While filing the trademark registration application in any class or multiple class, the Micro, Small & Medium Enterprises enjoys a 50% less fee of filing in contrast to other organizations. Likewise, while submitting patent application 50% discount is granted to the Micro, Small & Medium Enterprises.