Enterprises/ entities can be categorized as manufacturing enterprises and service enterprises. As per sec-7 of MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 enterprises, whether proprietorship, Hindu undivided family (HUF), an association of persons (AOP), co-operative society, partnership firm, company or undertaking, by whatever name called is classified as below
In the case of Manufacturing entities
- Micro Enterprises –if investment in plant & machinery is less than 25 lakhs
- Small Enterprises –if investment in plant and machinery is more than 25 lakhs but less than 5 crores
- Medium Enterprises – if investment in plant and machinery is more than 5 crores but does not exceed 10 crores.
In the case of Service entities
- Micro Enterprises – if investment in plant & machinery is less than 10 lakhs
- Small Enterprises – if investment in plant and machinery is more than 10 lakhs but less than 2 crores
- Medium Enterprises – if investment in plant and machinery is more than 2 crores but does not exceed 5 crores.
As per sec-8 of MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006, every person who wishes to establish a micro, small or medium enterprises has to file the memorandum with such authority as may be specified by the Government.
Udyog Aadhaar is a government registration certificate issued by the Ministry of Micro Small and Medium Enterprises containing 12 digits unique code certifying micro, small and medium enterprises. It is also known as Aadhaar for business.
Udyog Aadhaar Memorandum (UAM)
To get registered under the MSME act, MSME needs to declare itself its existence, bank account details, proprietors or owners Aadhaar details and some other information as required in a single application which is called Udyog Aadhaar Memorandum.
Udyog Aadhaar Memorandum is filed online without any fees.
On successful submission of UAM, an acknowledgment containing Udyog Aadhaar Number (UAN) shall be mailed to the address provided in the memorandum.
As it is a self-declaration form, there is no need for submitting/uploading supporting documents.
Udyog Aadhaar Registration Process
Udyog Aadhaar registration process is a one single application easy registration process.
It can be registered by following steps
1.Visiting the specified website
Visit the Official website of Udyog Aadhaar Registration (www.udyogaadhaar.gov.in) to register the MSME.
2.Filling Required Information
After visiting the website the webpage asks to fill some required information which has been stated below:
- 12 digit Aadhaar Number of the promoter/entrepreneur &
- Name of the promoter/entrepreneur as per the Aadhaar card.
Note: In case of Partnership Firm, Managing Partner Aadhaar card information shall be filled.
- Validate Aadhaar: To fill the application form promoter/entrepreneur has to validate aadhaar by clicking the validate & generate OTP button. The OTP shall be sent to the mobile number which is registered with the aadhaar.
- After Successful submission of OTP, an application form will be opened requiring information of the applicant/ entrepreneur which has been stated below
- The social category of the applicant/ entrepreneur (SC/ST/OBC/General)
- Gender of the applicant/ entrepreneur
- Whether the applicant/ entrepreneur is physically handicapped or not.
- Name of the Entity: The applicant/ entrepreneur has to fill the Legal name of the entity. Legal Name means the name by which the business is going to be operated.
- Organization Type: Applicant/ entrepreneur has to fill the Organisation type i.e., Manufacturing or Service-oriented.
- Pan Details: Applicant/ entrepreneur has to fill the PAN Number.
- Plant Address & Address for Communication: Applicant/ entrepreneur has to fill the Plant address (the place where plant/factory situated) & Address for further communication (office address).
- Applicant/ entrepreneur has to fill the Commencement Date of Business
- Applicant/ entrepreneur has to fill the Bank Details ( Bank Account Number, IFSC Code)
- Applicant/ entrepreneur has to fill the major activity that shall be carried on whether manufacturing or service.
- Applicant/ entrepreneur has to choose the National Industry Classification Code(NIC Code) which has been prepared by the Central Statistical Organisation (CSO) under the Ministry of Statistics and Program Implementation, Government of India.
- Applicant/ entrepreneur has to state the total no persons employed in the plant & Investment made in plant & machinery or equipment.
- After Successfully Filling the above information the Applicant/entrepreneur has to submit, by clicking the submit button. OTP shall be generated & will be sent to the email Id mentioned in the application form for registration.
Documents Required for Udyog Aadhaar Registration
Below is the list of Documents required for Completing the above Registration Process.
- Name (as per aadhaar) and Aadhar number of the Entrepreneur
- Any Document that certifies Social Category
- Previous registration details of the Entity (if any)
- Organization type (manufacturing or service)
- Address proof
- Bank Account Details of the entrepreneur
- National Industrial Classification Code (NIC Code)
- The total no of persons employed in the enterprise
- Email ID and mobile number of the applicant/entrepreneur
- PAN number of the entrepreneur & the total investment made in the enterprise by the entrepreneur.
Benefits of Udyog Aadhar Registration
After registering under MSME the applicant is entitled to various benefits, a few have been listed below
- Easy availability of Loans & Loans with a lower interest rate
- Credit guarantee scheme
- Eligible to Government Subsidies
- The entrepreneur will get financial support for participating in foreign expos to showcase their products.
- Hassle-free opening of Current Account for Business.