It is recommended that you should register your MSME (Medium, Small, Micro Enterprise) via UAM (Udyog Aadhar Memorandum) if you do not yet have one registered.
Here is how you can easily register for your Udyog Aadhar.
What was the motivation for India’s introduction of Udyog Aadhar?
Aadhar was introduced to simplify the process for business owners to register their businesses under Micro Small Medium Enterprise (MSME).
Before the implementation of Udyog Aadhar, the procedures for the same were quite hectic and time-consuming. Now, processes have improved for smaller, medium, and micro enterprises.As a result of Udyog Aadhar being introduced, the procedure was quite time-consuming and involved a lot of paperwork. Nevertheless, now the situation has improved for small and micro businesses.
Why you should Register your MSME?
In light of what we discussed above, if you own a medium, small, or microbusiness and have not yet registered your business, you should do so through UAM (Udyog Aadhar Memorandum) in order to reap the benefits. Our main goal is to take advantage of many benefits provided by the Government under many different circumstances, which we will discuss later in this article.
In the past, some states used to rely on the national portal for MSME Registration, while others had their own individual portal. There were also states that relied on paper paperwork.
Having replaced the old system, things have changed.
What is Udyog Aadhar?
The Udyog Aadhar is a type of government registration that provides both a certificate of recognition and a unique 12-digit number to entrepreneurs and small businesses.
MSME is an initiative of the Government to give maximum benefits to small or medium-sized businesses in India. Upon registration, the owner, director, or proprietor uses their Aadhar Card Number to identify the entity, which can be a sole proprietorship, an LLP, a private limited company, etc.
Who Should Get Udyog Aadhar?
Almost every type of business entity Hindu Undivided Family like:
- One-person company,
- Partnership Firm,
- Production company,
- Limited company,
- The private limited company,
- Limited liability partnership,
- Co-operative societies or
- Any other group of persons or undertaking etc.
- can obtain Udyog Aadhar
Nevertheless, your entity must meet certain criteria in order to obtain the MSME registration according to the MSMED Act, 2006 to be classified as a medium, small, or micro-enterprise.
What is the Registration Process of Udyog Aadhar?
Aadhar registration is quite easy, and forms can be filled out quite easily.
So below is the step by step procedure of registration of Udyog Aadhar:
Step 1: Visit the Official Website of Udyog Aadhar
Firstly, visit the Udyog Aadhar Registration website for the registration form
Step 2: Enter all your Personal Information and details
You will receive an OTP (One Time Password) on your registered mobile number once you have entered your name and 12-digit unique Aadhar number. Click or select the option “Validate and Generate OTP.” Once you receive the OTP, enter it into the box. Next, select the social category from the General, SC, ST, or OBC options.
OTP will be received only when your registered mobile number is linked with Aadhar
Step 3: Mention all the details about the Enterprise/Entity
It is necessary to fill out the details about the entity, such as its name and type of organization, from the drop-down list. If you own more than one entity, then you have to file a separate Udyog Aadhar. You can choose Enterprise-1 and Enterprise-2.
You then need to provide the complete physical address for the company/enterprise/entity, which includes the district, zip code, state, email address, and phone number.
Moreover, you will need to select the date your enterprise began operating on the calendar.
Step 4: Provide the Bank Details
IFSC codes of branches where your enterprise’s account is active are required along with the bank account number.
Step 5: Classification of Your Enterprise
Identify your business’ primary activity from the “services” or “manufacturing” categories, selecting the most important one.
Step 6: Give details of the number of employees and total investment in the business
Next, you must fill in the details of how many workers you have employed at your company and how much money you have invested there.
Step 7: Select the District Industry Center and accept the declaration
In order to complete the process, you need to select the district industry center from the drop-down list, then accept the declaration and submit your application.
- For future reference, you will receive an acknowledgment number via e-mail.
- For professional assistance with your registration process, please contact Enterslice.
- What are the documents required for Udyog Aadhar?
- There is no requirement for any additional documents besides an Aadhar number linked to an email address or mobile phone number.
- Registration requires the following information, so please prepare it in advance:
- Any document for proof of SC, ST and OBC social category
- NIC Code or National Industrial Classification Code
- Mobile number and email id of the business owner
- PAN number
In the case that the applicant or authorized signatory does not have an Aadhar, they will need to first apply for an Aadhar at an enrolment center. Once you have your Aadhar, the process for Udyog Aadhar can be started.
How to Edit Udyog Aadhar Details?
During the registration process, if an error has crept in, don’t worry because there is a straightforward way to solve it.
Applicants can edit their Udyog Aadhar Memorandum under a new provision launched by MSME, allowing them to easily update or edit any information on Udyog Aadhar with only a few mouse clicks.
The link to update the details is “Update the Udyog Aadhar”.
By clicking the link, you will be directed to a page where you will be asked to enter your name, Aadhar number, and the OTP you receive. Following that you will be able to edit or update your profile.