With the rise in Small and Medium Enterprises in the country, the government has facilitated the Udyog Aadhar Registration for small businesses. This is to increase the registrations of small businesses and promote more businesses in the economy.
Prior to the Udyog Aadhar system, small and medium businesses had to go through tons of paperwork and form-filling to get their business registration set up and complete. This not only discouraged business entrepreneurs from registering their business but also made it difficult to conduct business in small cities and towns.
The Udyog Aadhar Registration is completely free of cost, requires a few documents from the entrepreneurs, and a seamless online registration procedure that can be done within a few online clicks. The advantages and benefits of getting your SME registered on the Udyog Aadhar Registration are plenty and can boost your business.
Latest Update about MSMEs (2nd July 2021)
- Retail & wholesale businesses are now included under the ambit of MSMEs. After being excluded for 4 years, the MSME ministry added retails & wholesale trades to the list of MSMEs in India. These trades should take UAM registration to avail benefits of the different schemes available for MSMEs.
- FIDC (Finance Industry Development Council) has requested MSME Minister Nitin Gadkari to extend the date of MSME registration to March 2022, from the earlier date of April 2021. The RBI had issued a circular stating Udyam Registration compulsory and mandatory document for MSME classification for any scheme benefit from 1st April 2021. RBI issued this following the MSME ministry’s notification dated 2021. This request by FIDC was made keeping in view the effect of COVID-19 2nd wave on MSMEs.
What is the Udyog Aadhar Registration?
The Udyog Aadhar is twelve digits unique identification number given to all micro, small and medium enterprises, i.e. MSMEs and SMEs. The governing body behind the Udyog Aadhar is the Ministry of Small and Medium Enterprise. They overlook the entire functions of SMEs, ensure the registration is done successfully and revise rules and regulations if needed.
The latest development in their rules and regulations was to change the Udyog Aadhar Registration to Udyam. The certification received would also be under the name of Udyam Registrations, and SME’s and MSME’s that have earlier registered under Udyog Aadhar would’ve been required to re-register their businesses before 31st March 2021.
Once a business has registered on the portal, they receive a certification that mentions their unique 12 digits identification number. The certificate is proof that the business is registered, and anyone conducting business with a small and medium enterprise should ensure it is registered under the Udyog Aadhar portal.
How to register your business on the Udyog Aadhar platform?
Since the registration is now changed to Udyam Registration, we will mention the steps that need to be done according to the new procedure.
- The registration can be done entirely online by filling in a few forms. Log onto – https://www.msme.gov.in/ and click on Udyam Registration (Online Registrations for MSME). As shown in the image below.
- Once that is done, a new tab will open, which will provide two options
A. For new registrations
B. For businesses that have registered under Udyog Aadhar and need to migrate to Udyam Registration.
Click on the link that is required from your end.
- The next step would be to provide your Aadhar Number and the name of the entrepreneur. An OTP message would be sent to the entrepreneur that needs to be added for the next steps.
- A business can register on the platform with or without the PAN card details. Post that details need to be added, such as personal information, bank details, enterprise details, etc. Once all the details have been filled in the form, submit the form.
- Once the form has been submitted successfully, the registration is complete, and a reference number in regards to the registration form is given. The Udyam Certificate and registration number would be received in a few days, and till then, the reference number is valid to conduct business.
- The latest update in the Udyam Registration is that it can only be done online. Earlier, for Udyog Aadhar Registration, the process could be online or offline, but currently, it can only be done online.
Eligibility Criteria for the Udyog/Udyam Aadhar Registration
Only Micro, Small and Medium Enterprises are allowed to register for the registration if they meet the following criteria:
- Enterprises making a maximum investment of 10 crores in Manufacturing plants and 5 crores investment in Services and types of equipment
Note: Firms that conduct business in the retail and wholesale sector do not fulfil the eligibility criteria for Udyog Registration. To know more about what classifies as a micro, small or medium enterprise, the investment value and turnover, click on the link here.
Documents required for the Udyog/Udyam Aadhar Registration
Since the process has now changed to Udyam Aadhar Registration, the list of documents earlier required are not required anymore. Only the Aadhar Card and PAN card are required for Udyam Aadhar Registration. There is a separate form that needs to be filled if you wish to do the Udyam Aadhar Registration without the PAN card.
However, if you wish to verify the registration, the following documents are required:
- Aadhar Card
- Voter ID
- Bank details, passbook
- Passport Size Photograph
Benefits of Udyog/Udyam Aadhar Registration
- One of the biggest advantages of registering your business on the portal is the ease of getting loans, with or without a guarantee, and at a subsidised interest rate too.
- Any future bank work for the business, such as credit line, current accounts, and all can be done seamlessly since Udyam Aadhar Registration is complete.
- Tax exemptions and tax rebates are available for small and medium enterprises post the registration.
- Small and Medium Enterprises are also available for government subsidies which otherwise would not be possible if they haven’t registered on the portal.
Frequently Asked Questions about the Udyog Aadhar Registration
- What is the cost of registering the business on the portal?
The entire process of registering your business on the Udyog Aadhar Registration is completely free of cost.
- Can the registration done be offline?
No. After the update has been changed from Udyog Aadhar Registrations to Udyam Aadhar Registration, the entire process is only online and can be completed within a few clicks.
- What are the documents required for the registrations?
With the latest update in place, a business only required the Aadhar Card for registration. Registration can be done with or without the PAN Card. Form Filling for both these options is available.
- If I have registered my business on the Udyog Aadhar Registration, do I need to re-register again on the Udyam Aadhar Registration?
Yes. All business and enterprises registered on the Udyog Aadhar Registration are required to migrate to the Udyam Aadhar Registration for future purposes.
- Till when is the certification valid?
There is no expiry date to the Udyam Aadhar Certificate as of now.