Udyog Aadhaar Registration for MSME
MSME or Udyog Aadhaar registration is a kind of certificate that is provided to Micro, Small and Medium-sized enterprises by the department under the Micro, Small and Medium Enterprise Development Act, 2006 (MSMED). Earlier it was know as MSME Registration instead of Udyog Aadhaar registration. For simplifying the process, now the department has merged process with Udyog Aadhaar registration and it is now available online for every stakeholder. The main objectives of Udyog Aadhaar/MSME registration are the following ones:
- Facilitating competition internationally for the micro, small and medium enterprises;
- Promoting the growth of micro, small and medium enterprises
- To effectively tackle the problems of poverty and unemployment;
- One stop solutions for MSME/SSI units for availing the benefits of various government scheme;
- Protecting the financial harassment of MSME/SSI units by the big industries.
Udyog Aadhaar Eligibility
It is not like anyone can come, apply and obtain the Udyog Aadhar/MSME Registration. The entities which are are classified as a micro, small or medium enterprise, as shown in below mentioned table, based on investment in plant and machinery are eligible for Udyog Aadhaar /MSME registration.
||Upto Rs. 25 lakhs investment in plant & machinery
||Upto Rs. 10 lakhs investment in equipment
||Upto Rs.5 crore investment in plant & machinery
||Upto Rs.2 crores investment in equipment
||Upto Rs.10 crore investment in plant & machinery
||Upto Rs.5 crores investment in equipment
Advantages of Udyog Aadhaar Registration
Anyone can apply for Udyog Aadhar Registration without incurring any government fees. It can be applied and obtained online since the process is very simple. After obtaining Udyog Aadhaar registration, the registered entity can have following advantages:
- Possible financial support for participating in foreign expos to showcase their products.
- Government subsidies.
- Hassle-free opening of current bank accounts.
- Apply for government micro business loans and related beneficial schemes by the government.
- Comparatively Easier sanction of bank loans at lower interest rates as compared to other entities.
Documents Required for Udyog Aadhaar
The main and important documents is Aadhar Card of the proprietor, director, promoter etc. for obtaining the MSME/Udyog Aadhar Registration. No further documents are required other than an email and a mobile number.
- In case of proprietorship, the applicants Aadhaar is compulsory.
- In case of a partnership, the partners Aadhaar is compulsory.
- In the case of a company, the Directors Aadhaar is compulsory.
- In the case of LLP, the Designated Partners Aadhaar is compulsory.
If an applicant or authorised signatory of a business is not in possession of the Aadhar Card, then he must first apply for Aadhaar at an Aadhaar enrolment centre. Once, the Aadhaar is obtained, the Udyog Aadhaar process can be started.
Procedure for Udyog Aadhaar Application
Follow the steps below to obtain Udyog Aadhaar registration online:
- Logon to the Udyog Aadhaar website.
- Enter the 12 digit Aadhaar of the applicant and complete the verification process.
- Validate & OTP: The OTP shall go on the registered mobile number and validate the same.
- Name of Applicant/Authorised Signatory– Fill the name of authorised signatory or owner as mentioned on the Aadhaar Card.
- Social Category – Fill the applicant’s caste details like: General/SC/ST/OBC.
- Name of Enterprise – Fill the name of entity like company name, partnership firm name, LLP name, or proprietary firm name.
- Multiple Udyog Aadhar: The person can apply and obtain more than one Udyog Aadhar Registration if he carries on more than business.
- Type of Organization – Select the type of legal entity for the business.
- PAN – Enter PAN Number of the proprietor in case of proprietorship. In the case of company or LLP, enter the PAN of the entity for which Udyog Aadhaar is sought.
- Location of the plant – Enter the address of all location of the business.
- Official Address – Enter the main address or corporate office address along with mobile and email address.
- Date of Commencement – Enter the date on which the business was started.
- Previous Registration Details – Enter details of previous MSME registration, if applicable.
- Bank Details – Enter details of the bank account of the company, including IFSC Code and Bank Account Number.
- Major Activity – Select major area of activity of the business – manufacturing or service.
- NIC Code – Select the appropriate NIC Code from the National Industrial Classification (NIC) handbook.
- Persons employed – Enter the total number of people employed in the business.
- Investment in Plant & Machinery/Equipment – Enter the amount of money invested in terms of machinery and equipment by the business. Do not include the value of building or land.
- DIC – Enter details of the District Industry Center nearest to the business, if required.
After filling up all the details, re-check and confirm the details filled in and Click the submit button. Verify the OTP number, generated by the registered number, with Captcha code required. An acknowledgement number will be generated and e-mailed to the applicant, which should be noted for future references.