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Udyog Aadhar’s Record – Answering what, who, how and why

Udyog Aadhar’s Record – Answering what, who, how and why

The Government of India provides small and medium-sized businesses with a unique number and a certificate that recognizes and certifies them as businesses. It is called the record of Udyog Aadhar. Previously known as the MSME registration process, any of the following businesses can opt for it:

  1. A sole proprietorship entity

  2. An LLP company

  3. A private limited company

  4. Or any other corporation

To register, you need a 12-digit Aadhar Number which can be provided by:

  1. The owner of the firm

  2. The director of the company

  3. The owner of the entity

Udyog Aadhar – Who should opt for him?

Any company, business or entity that meets the specified criteria of micro, small or medium-sized business can apply for MSME registration. If the company can be classified as MSME, then you can go for Udyog Aadhar. The type of business may include:

  1. Property

  2. company signature

  3. limited liability company

  4. production company

  5. sole proprietorship

  6. cooperative societies

  7. Hindu undivided family

  8. limited liability company

  9. limited liability company

Apart from those listed above, any other association of persons or companies can also choose to register with Udyog Aadhar.

How to register in Udyog Aadhar?

In recent years, the government revamped the SSI and MSME registration process to make it much simpler. The renewed system is simple and does not require much data. It should be noted that the online portal can only be used by people who have an Aadhar card and own a company.

A person who wishes to register as an MSME but does not possess an Aadhar number must submit the Udyog Aadhaar Memorandum (UAM) to the General Manager of the required District Industries Center. Here are the steps to follow for those who have an Aadhar number:

1. Udyog Aadhar has an official registration portal. The first step is to visit it.

2. Once the web is open, fill in two pieces of information:

  • The full name of the person requesting the record.

  • Your unique 12-digit Aadhar Number.

After this, click on the ‘Validate and generate OTP’ button. The one-time password will be sent to the mobile phone number registered with the Aadhar card. Use the OTP to complete the social category. There will be four classes:

  • CS

  • S.T.

  • CBO

  • General

3. Now all the details of the business or company must be filled in. Remember that the name space should be filled in with the name of the business and not the person completing the application. For correspondence details, enter the company’s full mailing address. This would include:

  • District

  • Pin code

  • Condition

  • Email address

  • Mobile phone number

4. Next comes the transfer information that requires data such as:

  • The date the entity began operations. (Use the calendar to fill in the exact date)

  • Any previous registration data. (This includes SSI registration, EM1, EM2 and UAM registration number)

5. The form will now ask for bank details. Enter the bank account number and the IFSC code of the bank branch. Make sure the account is registered in the name of the company. To find the IFSC code, go to the bank’s website.

6. The next step is to specify the main business of the companies. Udyog Aadhar offers two options: manufacturing and services. For a company that does both, the best case scenario is to choose the option that makes up the significant part of the operations. For example, if the company is 70% manufacturing and 30% service, then manufacturing would be the correct selection.

7. The last detail requested by the form is the number of employees currently enrolled in the business and the total amount of the investment.

8. The final step in the procedure is to choose the District Industry Center. Use the drop down list to choose one. After this, accept the statement and submit the application.

If a person has more than one company, they will need to fill out a separate Udyog Aadhar form for each company.

Why register under Udyog Aadhar?

A simple process that does not require paperwork is not the most important incentive to register a company for Udyog Aadhar. The scheme offers a large number of rebates and benefits for small, micro and medium-sized businesses. To name a few:

  • The company obtains an exemption from excise taxes.

  • The business can opt for the credit guarantee scheme.

  • The company is also exempt from direct tax laws.

  • Since the business demands a lot of electricity, a registered company can make use of the concession on energy bills.

  • If the entity files trademark or patent applications, it gets a reduction in the fee.

  • Once a company is designated as an MSME, it can make use of many government schemes, such as:

  1. easy loans

  2. unsecured loans

  3. low interest rates on loans

Another way to increase business income is the subsidies enjoyed by registered MSMEs.

  • When the company decides to participate in international and foreign exhibitions, it gets financial support from the Indian government.

  • A Udyog Aadhar company gets waivers when applying for any government-issued tender

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