Micro, Small, and Medium-Sized Businesses are granted the Udyog Aadhar unique identification number (MSMEs). The Ministry of Micro, Small, and Medium Enterprises is responsible for issuing it. However, the Udyog Aadhar has now been changed to Udyam. To obtain an Udyam Certificate, new MSMEs must register on the Udyam Registration Portal immediately.
Read the full blog to know more about the Udyam/Udyog/MSME registration online.
Udyog Aadhaar Registration
To promote online Entrepreneurs Memorandum (also known as MSME registration) filing for Micro, Small, and Medium Enterprises, the Udyog Aadhaar registration online method has been developed. The MSME will self-certify the document’s existence, bank account, business activity information, ownership and employee information, among other things. With a one-page online registration form, the Udyog Aadhaar registration online procedure would be simpler.
Udyog Aadhaar Memorandum (UAM)
As previously mentioned, the filing of EM-1 and EM-2 has been replaced by the UAM registration system. To encourage the ease of launching small and medium-sized enterprises, the Ministry has informed UAM of MSME under the MSMED (Micro Small and Medium Enterprises Development) Act, 2006. The registration form is free; you may use one Aadhaar number to fill out several UAMs. The form can be completed on a self-declaration basis, allowing the MSME to declare their existence, bank account information, Aadhaar information, and other necessary fundamental details. Anywhere in the nation can use the portal to complete the UAM registration online. The Udyog Aadhar portal is also accessible on mobile devices.
Benefits of Udyog Aadhaar Registration Online
The benefits of Udyog aadhar registration online are numerous. Among the advantages that registered enterprises might make use of are the following:
- Scheme for Credit Guarantee
- Excise waiver
- Loan with no collateral security
- Government grants
- It is easier to approve bank loans and with cheaper interest rates.
- Interest under the Delayed Payments Act, which represents a substantial portion of the rate set by the RBI
- Other advantages include the chance to take part in international exhibitions.
Aadhar Udyog Registration Process
The steps for Aadhar Udyog Registration are as follows:
Step 1: Visit the Udyog Aadhaar website at http://udyogaadhaar.gov.in
Step 2: Input the Aadhaar number and any other information about MSME. Additionally, choose the ‘Validate and Generate OTP’ option (One Time Password)
Step 3: Input the obtained OTP. If this is not configured, apply to link your mobile number to your Aadhaar.
Step 4: Fill out the registration page with owner and company information, including the bank account information, NIC, and DIC codes.
Step 5: After reviewing the information you have already entered, click the Submit button.
Check the OTP number produced by the registered number with the necessary Captcha code.
Step 6: The applicant will receive an email with an acknowledgement number they should write down for future use.
What is the Udyog Aadhar Registration online Fee?
Businesses that completed their Udyog Aadhar Registration online must submit a new Udyam Registration application. It costs nothing to switch from Udyog Aadhar Registration online to Udyam Registration.
The Udyam Registration Portal allows MSMEs to complete their registration online. It is cost-free. There is no charge for any registrations made using this portal.
What is Udyog Aadhaar/ SSI/ MSME?
The MSME certification is given to medium-sized, small-scale, and microentrepreneurs by the Indian government. By getting MSME certificates or Udyam Registration, businesses operating in microscale production, processing, and service delivery are eligible to participate in government programmes.
Federal and state governments offer numerous benefits, such as lower interest rates, electricity subsidies, tax and excise exemptions, and other supplemental aid. This certification’s primary objective is to provide small businesses with financial help so they may develop and become competitive.
A significant advantage of this certificate for small firms is that they can get funding from banks or other financial institutions at very cheap interest rates.
According to the government, the following business owners qualify as MSMEs due to their investments in machinery and equipment:
- Micro enterprises:
These are businesses with a turnover of under 5 crore rupees and an investment in machinery and equipment of no more than 1 crore rupees.
- Small enterprises:
Small businesses invest over one crore rupees but under ten crore rupees in equipment, whose annual revenue is over one crore rupees but under twenty-five crore rupees.
- Medium enterprises:
Medium-sized businesses have a minimum annual sales of at least 25 billion rupees and maximum annual investment in plant and equipment of at least 10 billion rupees but not more than 50 billion rupees.
Whether the business is a limited liability partnership, a public limited company, a society, a proprietorship, etc.,
The most crucial choice for starting a small business is to register online for an MSME because it is inexpensive. Any small enterprise invested less than the amount mentioned above may apply for MSME certification or an Udyam registration certificate after registering their company. You can also incorporate a proprietorship business by obtaining an MSME or Udyam registration certificate.
Procedure for MSME Registration online
The applicant can register for MSME Registration online through Udyam Registration, a government-based website integrated with the GSTIN and Income Tax systems. Businesses not covered by the GST Law are exempt from the registration requirement. However, companies subject to the GST Regime must get GST Registration to receive Udyam Registration.
One can apply for MSME Registration through the Udyam website, and the portal will not charge any fees in exchange for granting such a registration;
After that, a confirmation message with the reference number for the application will appear on your screen;
After completing the necessary steps for verification, the Ministry will send the MSME certificate or udyam registration certificate to the applicant’s email ID. The MSME will provide the MSME Registration online two to three days following the day you submit your application;
The certificate never expires and is not renewed;
With the use of the account they have created on the Udhyam Registration website, the applicant can download the certificate.
Those who get UAM Registration or any other registration authorised by any authority under the MSME must re-register on the Udyam Registration Portal. Select the “For New Entrepreneurs who are not Registered as MSME/those with EM-II” option to do this.
By June 30, 2022, all enterprises or businesses with UAM Registration must migrate to Udyam Registration. If they don’t switch to Udyam Registration by this date, the UAM Registration will be void, and the entrepreneurs won’t be able to benefit from the benefits provided to MSMEs.
Documents needed for the online MSME registration
- Application form duly completed and
- Two passport-sized pictures
- Utility bills (water and electricity bills) and a passport, voter ID card, Aadhaar card, driver’s licence, and other documents are accepted as identity proof.
- Company location and PAN card
- Income proof
- Bank details
- Most recent bank statement (of previous six months)
- Agreement of Rent or Lease
- Landlord’s NOC
- Any additional documentation that the bank or NBFC asks
How long are MSME registrations and Udyog Aadhar registrations online valid?
A provisional MSME registrations and Udyog Aadhar registrations online certificate that is good for five years is given initially to you. Five years later, you can apply for Final Registration.
Are the Udyog Aadhaar, MSME, & Udyam registrations separate from one another? What sets them apart from one another?
A UAM Number is generated by the previous registration system, Udyog Aadhar and MSME Registration online. Beginning on July 1, 2020, the new Udyam Registration system replaced MSME/Udyog Aadhar Registration.
What is the necessary condition to obtain an online MSME, Udyog Aadhar, or Udyam Registration?
Anyone with an Aadhaar card linked to an active mobile number is qualified to register their business. Lawgical India can help you get Aadhaar Udyog/MSME registration online. Contact our experts to get more information about the registration process.
