MSME sector were broadened significantly under the MSMED Act, 2006, which recognized the concept of “enterprise” and to include both manufacturing and services sectors, besides defining the medium enterprises under MSME Sector. Thus, the entire non-agricultural sector of economy was brought under the coverage of MSME Sector subject to the revised criteria prescribed for defining Micro, Small and Medium Enterprises separately for manufacturing and services sectors.
In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:
(a) Manufacturing Enterprises: The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951) or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. The Manufacturing Enterprise is defined in terms of investment in Plant & Machinery
(b) Service Enterprises: The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.
Who can Apply for Udyog Aadhar ( MSME) Registration?
Udyog Aadhar or MSME Registration can be taken by any type of business entity in India. a Sole Proprietorship , Partnership Firm, LLP, Company, Hindu Undivided Family, Association of Persons, Co-operative societiey and Self Help Group.
Eligibility Criteria based on Maximum ceiling limit of Investment made for Plant & Machinery ( in case of Manufacturing Industry) and Equipment ( for Service Industry) and MSME Clasification is based on Investment amount.
Only those entities that can be classified as a micro, small or medium enterprise under the following criteria as per the MSMED Act, 2006 is eligible to take Udyog Aadhaar number .
Though your entity is fall under micro, small or medium as per the Act, it is not madatory to take registration. You take the Registration voluntarily any time provided you have the Aadhar Number, PAN and Bank Account at the time of registration.
Benefits of Udyog Aadhar ( MSME) Registration
MSME registered Business can avail benefits of all the government schemes such as an easy loan process under various scheme for MSME, loans with subsidised rates of interest etc.
The Micro and Small Enterprises are also eligible for collateral-free loans up to Rs. 1 crore under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE Scheme). This is a collateral free loan and the Central Government takes guarantee of the borrower and To improve the timely funds’ availability to the MSME Sector, the Government of India has classified loans to Micro and Small Enterprises under priority sector lending.
Govt. Fee Concession
50% Govt fee concession in filing of Trademark and Patent registration.
Bank Account Opening
Facilitate hassle-free opening of current bank accounts in the name of the business.
Support Assistance in Foreign Expo
Receive financial support for participating in foreign expos to showcase their products.
Micro and Small enterprises also enjoy Other Subsidies from State Governments such as extended credit facilities, Industrial extension support, and services, Assistance in marketing, Assistance for construction of industries in underdeveloped areas, Technical consultancy, assistance in the capital, Excise exemption and Exemption under direct tax laws etc.
Basic Requirement for Udyog Aadhar ( MSME) Registration
Aadhar Number of Proprietor / Director / Partner
lnvestment in Plant & Machinery / Equipment
Permanent Account Number (PAN)
Certificate of Incorporation ( for Company/LLP)
Previous Registration No. ( EM 1/ EM 2/SSI/UAM) (If Any)
Guidelines for Filing the Online Udyog Aadhaar Form
Aadhar Number - 12 digit Aadhar number issued to the applicant ( Proprietor / Director / Partner) should be filled in the appropriate field.
Name of Owner - The applicant should fill his/her name strictly as mentioned on the Aadhar Card issued by UIDAI. E.g. if Raj Pal Singh has his name as Raj P. Singh, the same should accordingly be entered if the name does not match with the Aadhar Number,
Validate Aadhar - The applicant must click on Validate Aadhar button for verification of Aadhar, after that only user can fill the form further.
Reset - The applicant can click on reset button to clear the field of Aadhar No and Name of the owner for different Aadhar.
Social Category - the Applicant may select the Social Category (General, Scheduled Caste, Scheduled Tribe or Other Backward Castes (OBC). The proof of belonging to SC, ST or OBC may be asked by appropriate authority, if and when required.
Name of Enterprise - the Applicant must fill the name by which his/her Enterprise is known to the customers/public and is a legal entity to conduct business.One applicant can have more than one enterprises doing business and each one can be registered for
Type of Organisation - the Applicant may select from the given list the appropriate type of the organisation for his/her enterprise. The Applicant must ensure that he/she is authorised by the legal entity (i.e. enterprise being registered for Udyog Aadhar
Postal Address - the Applicant should fill in the appropriate field the complete postal address of the Enterprise including State, District, Pin code, Mobile No and Email.
Date of Commencement - The date in the past on which the business entity commenced its operations may be filled in the appropriate field.
Previous Registration Details (if any) - If the Applicant's enterprise, for which the Udyog Aadhar is being applied, is already issued a valid EMI/II by the concerned GM (DIC) as per the MSMED Act 2006 or the SSI registration prevailing prior to the said
Bank Details - the Applicant must provide his/her bank account number used for running the Enterprise in the appropriate place. The Applicant must also provide the IFS Code of the bank's branch where his/her mentioned account exists. The IFS code is now a
Major Activity - The major activity i.e. either "Manufacturing" or "Service" may be chosen by the enterprise for Udyog Aadhar.
NIC Code - the Applicant may choose as appropriate National Industrial Classification-2008 (NIC) Code for the selected "Major Activity".
Person employed - The total number of people who are directly been paid salary/ wages by the enterprise may be mentioned in the appropriate field.
Investment in Plant & Machinery / Equipment - While computing the total investment, the original investment (purchase value of items) is to be taken into account excluding the cost of pollution control, research and development, industrial safety devices,
DIC - the Applicant, based on the location of the Enterprise, has to fill in location of DIC. This Column will be active and show option only when there are more than one DIC in the district. In fact if there is only one DIC in the district system will au
Submit - The Applicant must click on Submit button to generate acknowledgment number.
Our Packege Inclusion for Udyog Aadhar ( MSME) Registration
Our MSME Expert give on call consultation to client first to make him clear about the process of registration and Documents requirement.
Our MSME Expert prepare your application and co-ordinate with you to collect all information required for drafting.
Once we finish drafting, file your application online with Department.
You get the Registration Certificate on the same of filing at your registered Email ID and Also we send you a copy on mail.
The salient features of Udyog Aadhaar
Under Udyog Aadhar, Registration is 100% online.
Under Udyog Aadhar, UAM ( Udyog Aadhar Memorandum) can be filed by self-declaration on the details of the enterprise.
Under Udyog Aadhar, Personal Aadhar number, Industry name, Address, Bank details, and some common information, The sufficient details that are required for filing for registration
Under Udyog Aadhar, One can file more than one Udyog Aadhaar with same Aadhaar Number.
Under Udyog Aadhar, There is No Govt. Fee for filing.
Under Udyog Aadhar, Once it is filled and uploaded, the registration number is received at registered email ID.
TO AVOID ANY ERROR OR MISTAKE, IT SUGGESTED TO TAKE THE SERVICE OF CONSULTANT. WE HELP YOU TO GET THIS DONE SMOOTHLY.
Why do you need FinTax Corporate Professional's service ?
It is important your Application is filed correctly and properly as per guidelines. Our Experts are well experienced in this line to get your work done smoothly.
What is the genesis of Udyog Aadhar?
The ministry for micro, small and medium enterprises had in September’15 notified Udyog Aadhar, taking a cue from the prime minister's radio show “Mann Ki Baat”, where he had talked about simplifying procedures to start a business with a single-page registration form.
A large chunk of enterprises in India are simply not registered due to the cumbersome paperwork involved in the process and, therefore, can't tap the government schemes for them. The KV Kamath panel on financing the MSME sector, that has been the biggest job creator in recent years, had recommended that the registration should be universalised.
The concept of Udyog Aadhar and ease of registration have thus originated to ensure wider coverage of MSMEs to avail the benefits under various Schemes of Central/ State governments.
What is Udyog Aadhar Memorandum (UAM)?
Udyog Aadhaar Memorandum is the registration form wherein the MSME certifies its existence, and provides mandatory information such as owner’s Aadhar details, bank account details, Business activities, Investment in Plant & machinery, etc.
Post submission of this form, an acknowledgment is generated and send to registered email of the applicant containing the unique UAN (Udyog Aadhar Number).
As it is a self-declaration form, there’s no need for any supporting documentation. Note:( Even though supporting documents are not required, any central or state authority can ask for specific documentation as proof of information provided in the UAM form).
Aadhar OTP Verification is required for Udyog Aadhar Number (UAN) Registration?
Yes. At the very initial of registration process,, you need to put your Aadhar Number and get this verified with OTP send to Aadhar registered Mobile number.
Has EM-I/II been replaced by UAM?
Yes. After the notification dated 18-09-2015, filing of EM-I/II by states/ UTs should be discouraged and instead all efforts be made to popularize the filing of UAM on the portal created by Ministry of MSME i.e.http://udyogaadhaar.gov.in
What is the date for adopting the UAM and stopping EM-I and EM-II?
It is clarified that once the UAM has been notified dated 18-09-15, there cannot be a different cut-off date announced for adopting UAM. However, in order to maintain continuity, the cases of EM-I/II filing under process till 18-09-2015 may be accepted.
Whether the multiple system of registration may exist after introduction of UAM?
All other online/ offline systems of registration of MSMEs created and maintained by Central/State/UT Governments should cease to register new MSMEs forthwith. Such online platforms may be allowed to exist for the time being to enable access to useful legacy data for decision making. Henceforth, there should be only one system i.e. UAM for the registration of new MSME units.
How to select NIC Code of the Activity performed by the enterprise.
NIC code can be selected once the aadhaar number is validated and major activity (manufacturing or service) is selected. In order to simplify the selection of appropriate NIC code, a three-stage drop-down list is available to the users.
Is there a provision to verify the UAM credentials by the procurement agencies including government departments and PSUs?
NIC has been advised to suitably provide this provision in a way that several e-procurement portals in the country, created by the government or private but being used by the government could benefit from the UAM portal in so far as online verification of a MSME unit is concerned.
Is there a difference in the information sought under EM-I/II and the new UAM?
In order to promote ease of doing business for MSMEs, it has been decided to seek lesser information than EM-I/II in the UAM.
How to submit the supporting documents while filing UAM online?
The information sought is on self-certification basis and no supporting documents are required at the time of online filing of UAM.
What would happen to those enterprises which do not have Aadhar Number?
At present Aadhaar Number is mandatory for registration under UAM. However, the GoI will find a way out for covering those cases where Aadhaar Number is not available.
EM-I filed by a prospective enterprise entitles it for certain exemptions from paying stamp-duties. How to handle this in UAM?
Legally, the EM-I/II ceases to exist after 18-09-15. States/UTs may encourage providing all benefits/concessions to MSMEs based on UAM only.
Is there a provision for editing of information in UAM data of an enterprise by GM (DIC)?
No. However, GM DICs, on the UAM portal, shall be able to enter their remarks on the respective information provided by the entrepreneurs while filing the UAM online.
What is the future of EM Portal created by Ministry of MSME i.e. http://em.msme.gov.in?
New registrations in the EM Portal have been stopped forthwith.
Why power load details have not been asked in UAM?
Power load indicates the requirement of energy to the MSME unit. This has no relevance to the activity of the enterprise and the subject matter is dealt by the State/UT Governments
Will there be any updating of data by the entrepreneurs on the UAM portal?
The legacy of SSI registration and EM-I/II does not mandate for updation and the same used to be filed as a one-time exercise on the part of MSME units. The same is proposed to continue.
How the closing of the business unit is recorded the entrepreneur in the UAM?
It may not be made obligatory for the closing unit to inform about it to the State/UT concerned or the UAM portal.