Canvas of News With An Analytical Edge

Udyog Aadhar: What is it, Eligibility, Registration, Documents, Benefits

Udyog Aadhar: What is it, Eligibility, Registration, Documents, Benefits

Do you know that your enterprise can go to the next level with Udyog Aadhar?
If you didn’t already know about it, you’re missing out on the several ways your enterprise can benefit!
It’s no secret now that the small and medium enterprise (SME) sector in India is not just a statistical figure; it’s the heartbeat of our country’s economic growth. It comprises over 95% of industrial establishments and contributes a whopping 45% to the total manufacturing output. 

And if you fall into the category of MSME, you’re in luck because the Ministry of Micro, Small, and Medium Enterprises, in collaboration with the Government of India, has introduced the Udyog Aadhaar facility.

Let’s get to what is Udyog Aadhar, and how you can benefit from it. 

Summary 

  • What is Udyog Aadhaar?
  • What is the Eligibility Criteria for Udyog Aadhar?
  • How to Register for Udyog Aadhar?
  • Guidelines for Filing the Online Udyog Aadhaar Form
  • What is Udyog Aadhaar Memorandum (UAM)?
  • Documents Required for Udyog Aadhaar New Registration
  • What Are the Benefits of Udyog Aadhaar?

What is Udyog Aadhaar?

Udyog Aadhaar is more than just a registration system; it’s an identification mechanism tailored specifically for businesses. Think of it as an Aadhaar for enterprises, designed to simplify the complexities of registration and provide a gateway to a host of benefits aimed at fostering the growth of registered businesses.

What is the Eligibility Criteria for Udyog Aadhar?

To be eligible for Udyog Aadhaar, businesses are classified based on their investment in plants and machinery, as outlined in a specific table. This ensures that the benefits reach enterprises of varying sizes, aligning with the diverse nature of the SME sector.

Check out this table to confirm your eligibility: 

S.No. 

Type of Enterprises

Investment

Turnover

  1.  

Micro enterprises

Less than Rs.1 Crore

Less than Rs.5 Crore

  1.  

Small enterprises

Less than Rs.10 Crore

Less than Rs.50 Crore

  1.  

Medium enterprises

Less than Rs.20 Crore

Less than Rs.100 Crore

 

Now that you’re able to figure your eligibility, the next step is for you to figure how to register for Udyog Aadhar. 

How to Register for Udyog Aadhar?

Getting your business registered under Udyog Aadhaar is a straightforward process, and the best part is that it’s free. The first step involves having your Aadhaar information ready. For those without Aadhaar, a quick visit to an Aadhaar enrollment centre is all that’s needed.

Once you have your Aadhaar, follow these steps for Udyog Aadhaar registration:

  1. Log on to the official website.
  2. Enter your Aadhaar number and your name.
  3. Validate and generate OTP.
  4. Enter the OTP received on your registered mobile number.
  5. Fill in the required form with details about your enterprise, paying close attention to fields like ‘national industry classification code’ and ‘major activity.’
  6. Double-check the entered information to ensure accuracy.
  7. Submit the form and receive another OTP on your registered mobile number.
  8. Enter the OTP accurately and click the final ‘Submit’ button to complete the application.

Upon successful registration, you can print your Udyog Aadhaar certificate, and voila, you’ve officially joined the league of Udyog Aadhaar registered enterprises.

 

Now that you know how to register for Udyog Aadhar, you must know what is Udyog Aadhaar Memorandum, and how it helps your enterprise. But, for successful completion of registration, it’ll also be beneficial for you to consider the guidelines for filing the online Udyog Aadhar form. 

Guidelines for Filing the Online Udyog Aadhaar Form

When you get to filing your form, you need to be mindful of the following details: 
1. Enter the 12-digit Aadhaar number issued to the applicant in the appropriate field. 

  1. Fill in the name exactly as mentioned on the Aadhaar Card; validation ensures accurate information.
  2. Click the “Validate Aadhaar” button for verification before proceeding with the form.
  3. Use the reset button to clear Aadhaar and owner’s name fields for a different Aadhaar entry.
  4. Choose the social category (General, SC, ST, OBC) with potential proof requirements.
  5. Input the name by which the enterprise is known, ensuring it’s a legal entity for business.
  6. Select the appropriate organization type, ensuring authorization to fill the form.
  7. Provide complete enterprise address, including state, district, pin code, mobile number, and email.
  8. Enter the date when the business entity started operations.
  9. Mention any existing registration details if applicable.
  10. Include bank account number and IFSC code; essential for running the enterprise.
  11. Choose between “Manufacturing” or “Service” as the major activity.
  12. Select the appropriate National Industrial Classification-2008 (NIC) Code.
  13. Specify the total number of employees directly paid by the enterprise.
  14. Consider the original investment, excluding specific costs, when calculating total investment.
  15. Fill in the DIC location based on the enterprise’s district; automatically registered if only one DIC exists.
  16. Click “Submit” to generate the acknowledgment number after completing the form.

What is Udyog Aadhaar Memorandum (UAM)?

The Udyog Aadhaar Memorandum (UAM) is a single-page registration form that simplifies the process further. It allows MSMEs to self-certify their entity’s existence, providing details such as bank information and the Aadhaar details of the promoter/owner. 

Filing the UAM incurs no fee, and post-submission, an acknowledgment containing a unique Udyog Aadhaar Number (UAN) is generated and sent to the provided email address.

Certain enterprises are exempt from filing Udyog Aadhaar Memorandum:

  1. Those that have already filed Entrepreneurship Memorandum-I or Entrepreneurship Memorandum-II.
  2. Holders of small-scale industry registration.

Moreover, there’s no limitation on filing multiple UAMs using the same Aadhaar number, allowing flexibility for enterprises.

But what are the benefits of UAM

Well, it offers streamlined benefits

  1. With Udyog Aadhaar registration, businesses of all sizes can easily access online services provided by Ministries and Departments. 
  2. Unlike the previous complex EM2 filing required for medium enterprises, Udyog Aadhaar simplifies the registration process for all enterprises, making it cost-free, paperless, and providing instant registration.
    After being well-versed with these guidelines, it might help you to take a brief look at the documents required. 

Documents Required for Udyog Aadhaar New Registration

When starting the Udyog Aadhaar registration journey, ensure you have the following documents at your disposal:

  • Personal Aadhaar number
  • Name of the owner
  • Category of the applicant
  • Name of the business
  • Type of organization
  • Bank details
  • Key activity
  • National industrial classification code
  • Number of persons employed
  • Details of the District Industry Centre (DIC)
  • Date of commencement

This paperwork is minimal, emphasising the user-friendly nature of the Udyog Aadhaar registration process.

What Are the Benefits of Udyog Aadhaar?

If you want to know how you can benefit from Udyog Aadhar, then check out the following ways in which you can reap the benefits of it:

  1. You can enjoy access to loans without the need for guarantees and at subsidised rates.
  2. You can participate in foreign expos with financial support.
  3. You can avail exclusive government subsidies to ease financial burdens.
  4. You can apply for micro-business loans and other related schemes tailored for MSMEs.
  5. You can navigate government provisions for businesses with greater ease.

These benefits are not mere perks; they are essential support systems that can be instrumental in the growth and sustainability of your enterprise.

So, Udyog Aadhaar is not just a registration formality; it’s a dynamic tool designed to fortify the SME sector in India. Its user-friendly approach and array of benefits make it a valuable asset for businesses seeking growth and stability. 

But if you want to get deep into Udyog Aadhar, then click on the linked article to learn more. So, embrace Udyog Aadhaar, navigate the simple registration process, and unlock a world of opportunities for your enterprise.

You May Also Like

Credit Risk Management Courses: Your Top 5 Picks!
Guaranteed Return Plan: What is it, Tax Benefits, Eligibility
Guaranteed Return Plan: What is it, Tax Benefits, Eligibility
Fixed vs Floating Interest Rate: Which One Should You Go For?
Fixed vs Floating Interest Rate: Which One Should You Go For?