MSME/SSI Udyog Aadhar Registration Online

MSME/SSI Udyog Aadhar Registration Online is a certificate provided to micro small medium sized organisations. UDYOG Aadhar used to be referred to as MSME registration earlier. Now the process for obtaining MSME registration has been merged with Udyog Aadhar registration. It has been made online by the government. The main objectives of the MSME department are as follows:

  1. Enable the micro small and medium enterprises to compete with inter international competition efficiently:
  2. Promote the growth of micro small and medium enterprises on a large scale to effectively tackle the widespread problems of unemployment and poverty;
  3. Extend the benefits of various government scheme at one stop to the SSI units;
  4. Safeguard SSI from financial harassment in the hands of big industries.

The Ministry of MSME has come out with a free and online Udyog Aadhaar registration. Only small and medium businesses to obtain Udyog Aadhar registration. Existing businesses with MSME registration or Small-Scale Industry registration can also register on the Udyog Aadhar website to obtain Udyog Aadhaar. In this article, we look at the procedure for completing online Udyog Aadhar registration in India.

Types of MSME/SSI Udyog Aadhar Registration Online

Before exploring the concept of Udyog Aadhar, let us understand the classification of MSME – Udyog Aadhar Registration or MSMEs. The Micro, Small and Medium Enterprises (MSMED) Act, 2006 has categorized the flourishing MSME sector into two kinds, which are briefly described below:

Manufacturing Enterprises

The manufacturing sector is a vibrantly growing sector in India. As the name would convey, these are enterprises engaged in the manufacture or production of goods pertaining to any of the industries specified in the first schedule to the Industries (Development and Regulation) Act, 1951. The manufacturing enterprise is defined in terms of investment in Plant and Machinery.

Service Enterprises

As simple as it may sound, these enterprises are engaged in rendering services and are defined in terms of investment in equipment.

Reference: I have collated the above slides from the Government of India presentation for quick reference.
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Navneet

MSME/SSI Udyog Aadhar Registration

The online Udyog Aadhaar registration process has been created with an aim to encourage online filing of Entrepreneurs Memorandum (also known as MSME registration) for Micro, Small and Medium Enterprises. The online Udyog Aadhaar registration process will simplify the registration process with an online and simple one-page registration form. In the form, the MSME will self-certify its existence, bank account, business activity details, employment and ownership details and other information.

Udyog Aadhaar Memorandum

UAM has been notified by the Ministry of MSME under the MSMED (Micro Small and Medium Enterprises Development) Act, 2006 for promoting ease of starting small and medium-sized businesses. As mentioned earlier, the UAM registration system replaces the filing of EM-1 and EM-2. The registration form is free of cost and more than one UAM can be filed with the same Aadhaar number. The form can be filled on a self-declaration basis, where the MSME can self-certify its existence, bank account details, Aadhaar details and other required basic information. The UAM registration can be done using the online by using the portal from any part of the country. Additionally, mobile access is given to the UA portal.

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msme-udyog-aadhar-registration
Benefits of MSME/SSI Udyog Aadhar Registration Online

There are several benefits of registering with Udyog Aadhaar. Some of the benefits, that registered business receive are:

Credit Guarantee scheme

Excise exemption

Loan without collateral guarantee

Government subsidies

Easier sanction of bank loans at lower interest rates

Interest on Delayed Payments Act which is thrice of the rate stipulated by the RBI

Other benefits like opportunities to participate in exhibitions abroad

Conditions for Udyog Aadhaar Memorandum Registration

The Udyog Aadhaar Memorandum can be filled online on the official portal of Ministry of Micro, Small and Medium Enterprises or MSME – Udyog Aadhar Registration.

Every micro, small and medium enterprise involved in the manufacturing of goods or services with investment in plant and machinery below the limit specified under the Section 7 of the MSMED Act, should file the Udyog Aadhaar Memorandum.

The Udyog Aadhaar Memorandum should be filled only after establishing the unit by obtaining all regulatory approvals and starting commercial operations including manufacturing or service, or both will be specified in the Udyog Aadhaar Memorandum.

The proprietor from proprietorship firm, managing partner from partnership firm and Karta from Hindu Undivided Family should provide respective Aadhaar number in the memorandum.

In case of a company, LLP, society, cooperative society or trust, the PAN number of the organisation along with the Aadhaar number of the authorised signatory should be specified in the Udyog Aadhaar Memorandum.

Verification

For verification of new memorandum as well as an existing memorandum, a one-time password (OTP) will be forwarded on mobile number linked to the Aadhaar number of the applicant. The applicant is required to enter the OTP in the form before submission of the memorandum.

The memorandum can be filed on a self-certification basis, and no additional documentation is required to be uploaded when applying for Udyog Aadhaar Memorandum.

The State Government or Central Government or any other authorised officer may seek for documentary proof of the information given in the Udyog Aadhaar Memorandum if required.

Udyog Aadhaar Acknowledgement in Form II along with a unique Udyog Aadhaar Number (UAN) will be created, and the same will be forwarded to the email address registered in the Udyog Aadhaar Memorandum

Non-availability of MSME/SSI Udyog Aadhar Registration Online

In case of an applicant not having Aadhaar number or in the case where online filing is not applicable, a hard copy of the duly filled form I, to be submitted to the concerned District Industries Canter or to the Micro, Small, Medium Enterprise-Development Institute (MSME-DI) office. Accordingly, the concerned DIC or MSME-DI will file the Udyog Aadhaar Memorandum online on behalf of such an enterprise.

Udyog Aadhaar Memorandum for Existing Enterprises

Existing holders of Small-Scale Industry (SSI) registration need not require to file Udyog Aadhaar Memorandum. Also, it has to be ensured by the entrepreneur that no enterprise should file more than one memorandum.

Date of Commencement of Production

The date of commencement of production is to be provided at the time of filing the Udyog Aadhaar Memorandum. There can be inspection of the enterprise by the District Industries Centres.

In case of discrepancy regarding to the date of commencement of commercial production, the concerned authority will prefer the date of first sale invoice. It may be of manufacturing enterprise or delivery challan in case of manufacturing enterprise on job work basis. It is required as an evidence for determining the date of commencement of commercial production of the enterprise.

Documents required for MSME/SSI Udyog Aadhar Registration online

The applicants personal Aadhar is the main requirement for MSME – Udyog Aadhar Registration in case of a proprietorship no further documents are required other than an email and mobile number. In case of :-

  1. Proprietorship the applicants Aadhar must be used.
  2. Partnership the partners Aadhar can be used.
  3. Company the directors Aadhar can be used.
  4. LLP the designated partners Aadhar can be used

If an applicant or authorized signatory of a business dose not have Aadhar then he/she must first apply of Aadhar. The Aadhar can be obtained from Aadhar enrolment center. Once the Aadhar is obtained the Udyog Aadhar process can be started.

Udhyog Aadhar Requirements for MSME/SSI Udyog Aadhar Registration Online

  • The exemption under the direct tax laws
  • Reduction in fee for filing patents and trademarks
  • Your business will get eligible for availing government scheme benefits. You will get loans without guarantee, low-interest rates on loan, and easy loan.
  • You will have financial backing from the government for participating in foreign business expos.
  • Your Company will enjoy other forms of subsidies that will help you in increasing your company’s revenue.
  • Our will get an exemption when your enterprise applies for government tenders.

Documents Required For Individuals

  • Pan Card /Aadhar Card – Self attested
  • Address proof of the Orgnization
  • Nature of business
  • Mobile No.
  • Email Id
  • Bank Statement
  • Passport Size Photograph
  • Trade Name of Organisation.

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Documents Required For Organisations

  • Aadhar Card of Authorized Person.- self attested
  • PAN Card of Company and Signatory
  • Business Category (Private Limited,Partnership, LLP, OPC, HUF etc.)
  • Address proof of the organisation.
  • Bank Details
  • Incorporation Certificate.
  • Number of Person Employee.
  • Investment in Plant & Machinery / Equipment
  • Previous Registration Details (if any)
  • Key areas of activity of the business service or manufacturing

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