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Udyog Aadhar

Udyog Aadhar Registration

Last Updated 23rd Sep 2020

  • With effect from 1st July 2020, the process of registration of Udyog Aadhar is known as Udyam Registration.
  • Udyog Aadhar is a government registration provided with a recognition certificate known as Udyog Aadhar Certificate.
  • To register for Udyog Aadhar, UAM (Udyog Aadhaar Memorandum) can be filed online at zero cost.
  • You can file more than one Udyog Aadhar with a similar Aadhar number.
  • You require Aadhar number, Industry name, Address, Bank details etc. for Udyog Aadhar Registration.
  • Udyog Aadhar provides benefits like easy registration process, bank loans at a lower rate, rebates on tariffs, eligibility of government subsidies and setting up of business at lower costs etc.

What is Udyog Aadhaar?

Udyog Aadhar or Aadhar for business is a 12-digit Unique Identification Number provided by the Ministry of Micro, Small and Medium Enterprises and Government of India to small and medium enterprises on registration of their business. It was primarily introduced in the year 2015 to ease the process of registration for these enterprises as prior to the Udyog Aadhar, the registration process was tedious and paper-heavy and required separate registration for both small industry and MSME. The registration process involved submitting almost 11 different forms along with the necessary attested certificates under the system of EM-I/II (Entrepreneur Memorandum).

Along with that, Udyog Aadhar also promotes the growth of small and medium enterprises by providing benefits such as bank loans at a lower rate, concession and rebates on tariffs, eligibility of government subsidies and setting up of business at lower costs etc.

Udyog Aadhaar Eligibility

Udyog Aadhar Registration/Udyam registration is applicable for Micro, Small and Medium enterprises if they meet the following eligibility criteria:

  • Entities making a maximum investment of ₹ 10 Cr for Manufacturing in Plant & Machinery and ₹ 5 Cr for Services and Equipment.
  • Entities cannot register for Udyog Aadhar for activities of Retail and Wholesale.
Enterprise Manufacturing Sector Service Sector
Micro Enterprise Investment of up to ₹ 25 Lakh in plant and machinery Investment up to ₹ 10 Lakh in Equipments
Small Enterprise Investment of up to ₹ 5 Cr in plant and machinery Investment up to ₹ 2 Cr in Equipments
Medium Enterprise Investment of up to ₹ 10 Cr in plant and machinery Investment up to ₹ 5 Cr in Equipments

Free Registration Process for Udyog Aadhaar

The process of registration for Udyog Aadhar can be done online at zero cost by following the below-mentioned steps.

  • Visit the official website of Udyog Aadhar and click on https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx.
  • Now, enter your Aadhaar number and name in 'Aadhaar Number' and 'Name of Entrepreneur'.
  • Next, click on 'Validate and Generate OTP'.
  • Enter the OTP received on your registered mobile number.
  • Now, fill in the required fields like 'Name of Enterprise' and 'Type of Organisation', Bank details etc. as you are redirected to a new page
  • Verify the data entered and then click on the Submit' button.
  • Once you have submitted, you will receive another OTP on your registered mobile number.
  • Enter the OTP and Captcha code click the final 'Submit' button. You will now receive Acknowledgment/Reference number on your Email Address.

Udyog Aadhar Certificate

Udyog Aadhar Certificate is a recognition certificate issued when micro, small and medium enterprises register their business for Udyog Business. It includes a unique number that certifies the enterprises and also aids in getting benefits like reducing the costs of setting up a business, getting concessions on electricity bills, claiming stamp duty and registration, bank loans at lower costs etc.

Udyog Aadhaar Memorandum

Udyog Aadhar Memorandum is a self-declaration or self-certification form in which MSME can certify the business existence of their enterprise by providing details about their Aadhar Number, Bank details and others. Owners are not required to pay any fees for submitting this self-declaration form. Also, they can file multiple Udyog Aadhar Memorandum (UAM) with the same Aadhar Number. Once all required details are submitted, they will receive Udyog Aadhar Acknowledgement Number, which also contains a Unique Aadhar Number on their registered Email Address.

Documents required for Udyog Aadhaar New Registration Application

You are not required to submit any documents for Udyog Aadhaar Registration. However, you will be required to keep a few documents handy as you will be required to provide the information at the time of registration.

  • Aadhaar card or Aadhaar Enrolment ID slip
  • Bank passbook with photograph
  • Voter ID card
  • Passport
  • PAN card
  • Driving license
  • An employee ID card issued by the Government (if any)
  • Caste certificate (for SC, ST, and OBC category)

Benefits of Udyog Aadhaar Registration

Udyog Aadhar registration has not just simplified the process of registering the business for MSMEs but enterprises can also get the following benefits.

  • If you have an Udyog Aadhaar Certificate, you can get bank loans at a lower rate of interest, and in some cases, you may even avail the loan without collateral or mortgage.
  • Udyog Aadhar Registration reduces the cost of setting up the business or getting a patent done. Enterprises can get grants upto 50% on patent registration.
  • There are various tax rebates and exemptions for small and medium enterprises which have done Udyog Aadhar Registration.
  • Along with tariff subsidies, you can also avail capital and government subsidies.
  • With Udyog Aadhar Registration, it becomes easy to get licenses, approvals, and registrations, irrespective of the field of business.
  • Business owners can also get protection against delay in payment with Udyog Aadhar Registration
  • Other benefits of Udyog Aadhar Registration include concession in utility payments such as electricity bills, Reimbursement of ISO certification, a claim of stamp duty and registration charges etc.

FAQs

What is Udyog Aadhaar Certificate?

Udyog Aadhar Certificate is a recognition certificate that an enterprise gets on registering their business under Udyog Aadhar. It includes a unique number that certifies micro, small and medium enterprises and enterprises can also get benefits like bank loans at a lower rate, concession and rebates on tariffs, government subsidies and setting up of business at lower costs etc.

What is the difference between Udyog aadhar and MSME?

Both Udyog Aadhar and MSME are the same. With effect from July, 1st 2020, SSI, MSME and Udyog Aadhaar Registration have been replaced by Udyam Registration to ease the process of registration of MSMEs. All the existing MSME/ Udyog Aadhaar Registered enterprises are now required to re-enrol for Udyam Registrations.

What is the purpose of Udyog Aadhar?

Udyog Aadhar eases the process of registration of business for micro, small and medium enterprises and also helps in the growth of their business by providing benefits like rebates and concessions on tariffs, availability of cheaper loans without the requirement of collateral, concession on utility payments, reducing the costs of setting up business and Patents etc.

Do multiple registration systems exist after the introduction of UAM?

UAM has replaced the former systems of registration( EM-1 and EM-2) with effect from 18 September, 2015. All other registration systems of MSME are existing at the time being, but the Ministry of MSME has launched a new portal where MSME/ Udyog Aadhaar Registration will now be called as Udyam Registration. With the introduction of UAM, the process of registration has been simplified and does not include tedious submission of forms and documents.


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