Are you a Trader? Having a retail shop? Managing a company? You need Udyog Aadhar Registration.
Earlier MSME Or Udyog Aadhar Registration was a hectic tedious and time-consuming process for Entrepreneurs to be recognized as a business. There was a lot of paperwork involved which was very troublesome.
Earlier, there used to be a formal system of EM-I/II (Entrepreneur Memorandum). Under this system, entrepreneurs used to opt for a Medium, SMicro-Enterpriseterprise.
However, things have changed after the with the introduction of Udyog Aadhar Registration
The biggest reasons for introducing Udyog Aadhar Registration was to simplify the lengthy offline process and a single portal which will be common for everyone.
Let’s look at Sandeep’s story.
Sandeep is a trader who buys and sells goods on the small scale.
He encountered with the term “Udyog Aadhar Registration”.
Following questions came in his mind:
- What is Udyog Aadhar?
- Why do I have to register Udyog Aadhar for my business?
- What are the benefits of Udyog Aadhar Registration?
- How to apply for Udyog Aadhar Registration?
- How to register for Udyog Aadhar?
Sandeep is curious and confused.
What is Udyog Aadhar?
Udyog Aadhar is a 12 digit number given by MSME Government of India. Its a government registration that is provided along with a recognition certificate in order to certify small/medium businesses or enterprises.
It’s a simple procedure to register under MSME(Micro Small Medium Enterprise).
This exclusive system for Medium, Small and Micro Enterprises was launched so that the Government could now recognise and easily transfer the benefits of the system to the eligible enterprises.
Like every person has a unique identity in the 12 digit Aadhar Card, similarly, under Udyog Aadhar, every company will have a unique 12 digit number.
Be it a Proprietorship, Partnership, Private Limited Company, LLP or One Person Company, Hindu Undivided Family, Production company, Limited company, Co-operative societies or any association of persons or any other undertaking anyone can go for Udyog Aadhar Registration.
But you should know that there are a set of criteria that an entity has to meet in order to be classified as a medium, small or micro enterprise for obtaining the MSME registration.
If you own a company or an enterprise, then you should check if your entity can be classified as a medium, small or micro industry under the criteria defined in the MSMED Act, 2006 for checking your eligibility.
As per the new classification, enterprises having an annual turnover less than or equal to Rs 5 crore fall under the ‘micro’ category.
Units having a turnover between Rs 5 crore to Rs 75 crore will be classified as small enterprises, whereas those having turnover between Rs 75 crore and Rs 250 crore will be classified as medium enterprises.
Udyog Aadhar Registration Step By Step Procedure
Udyog Aadhar Registration Procedure is fairly simple. You don’t require to pay any government fees for it.
- Visit Udyog Aadhar Registration Site
- Enter the Aadhar Number and Your Name
- Enter the OTP on next Page
- Fill up the following Details of the form
- Enter Your Aadhar Number
- Social Category (General/SC)
- Physically Handicapped (Yes/No)
- Name of your Company / Shop
- Type of Organisation ( Propiertor/ Company)
- PAN Number
- Location Details (Flat, City, State, Name of Area, Pin, District)
- Enter State And District
- Click on Add Plant
- Official Address Details
- Date of Commencement
- Click on option N/A
- Enter Bank Details.
- Select Type of Industry ( Manufacturing / Services)
In NIC Code simply type your “Industry Name” and select the appropriate Industry Name then, automatically all the 3 rows i.e NIC 2, NIC4 and NIC 5 will get filled.
For eg: If you are providing beauty services, select the “Other personal service activities” automatically NIC 4 Digit and NIC 5 Digit Code will be displayed.
- Finally, Click On Submit Button
- You will get OTP on your email Address.
- Then along with OTP, attach PAN Card.
- You will get an Email from Government within 24 hours.
Finally, you will get your Udyog Aadhar Registered!
Main Benefits of Udyog Aadhar Registration
Following are the benefits of Udyog Aadhar Registration:
- Loan without Guarantee:
Let’s come back to Sandeep case, being a trader he can enjoy loan without Guarantee. That is he doesn’t have to give a mortgage while taking the loan from the bank.
- Easy Company Formation
If Sandeep wants to start the business online, he can easily start within minutes without having to pay any kind of fees. Earlier traders have to fulfill a very complex process making it tedious, expensive and time-consuming.
- Low-Interest Rate:
Sandeep can enjoy a Loan with a Low-interest rate.
- Financial Support from Government:
Sandeep can enjoy financial support from Government in case of Foreign Exports.
- Government Subsidiaries:
Sandeep can enjoy various Government Subsidiaries.
Common FAQs Related To Udyog Aadhar Registration
Q1. How do I cancel a Udyog Aadhaar registration?
A: No, you cannot cancel Udyog Aadhar Registration Online. In Offline mode, you can cancel by visiting nearest District Industrial Center(DIC) and submit your application via post.
Q2. How do I update Udyog Aadhaar Details?
A: For updating select “Update Udyog Aadhaar” on the right hand of the page. Enter your Aadhar Number and OTP Details and then update details you want to update and then click on the submit button. You will receive an acknowledgment number and you can check the status online.
Q3. What is the validity of the Udyog Aadhaar Memorandum from the date of Registration?
A: It is a Lifetime validity. There is no expiry from the date of registration.
Q4. Is Udyog Aadhar Registration and MSME Registration Same?
A: MSME Registration has now converted into Udyog Aadhar Registration. Earlier the procedure was long and now with the help of Udyog Aadhar, the process have become simple for MSME’s.
Q5. What is the Difference Between Shop Act License And Udyog Aadhar?
A: Shop Act License is issued statewide by the local municipal party and Udyog Aadhar is used to avail the benefits of government such as easy loan, government subsidiaries scheme.
Q6. Is it compulsory to get registered as a Sole proprietorship under Udyog Aadhar for opening a current bank account?
A: No it is not compulsory to get registered a sole proprietorship.
Q7. Does Construction Company need to register under MSME?
A: If you meet the MSME’s criteria i.e enterprises having an annual turnover less than or equal to Rs 5 crore fall under the ‘micro’ category. Units having a turnover between Rs 5 crore to Rs 75 crore will be classified as small enterprises, whereas those having turnover between Rs 75 crore and Rs 250 crore will be classified as medium enterprises. Then it is recommended to get Udyog Aadhar registration to avail the government benefits.
Udyog Aadhar Registration is mandatory for MSME enterprises if he wishes to avail the benefits from the government.
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