How to cancel Udyog Aadhaar registration?

Last Updated at: Aug 25, 2022
Latest Update

Enterprise Registration Simplified for MSMEs from 1st July

Starting from 1st July, enterprises can register themselves based on Aadhaar number alone. This is as per the new norms notified by the Government on 26th June 2020.   The enterprises are no longer required to upload certificates and documents for registering online. They can provide these details with a self-declaration. This new process is named as “Udyam Registration” and is made possible after the successful integration of the registration process with those of GST and Income Tax. The details provided in the self-declaration will be duly verified by the authorities based on GSTIN and PAN. Those who do not have Aadhaar can approach the Single Window Systems along with their identity proof for Aadhaar enrollment request, bank passbook copy, voter ID card, driving license, or passport. The Single Window Systems will facilitate registration after receiving the Aadhaar number.

Procedures on how to cancel Udyog Aadhaar registration?

The Udyog Aadhaar was started to make the process of registration of MSME. It made the procedure simpler. But a lot of companies wanted to know if the Udyog Aadhar registration could be canceled or deleted permanently. This article illuminates how to cancel the Udyog Aadhar registration.

Udyog Aadhaar Registration nowadays has gained immense importance for enterprises in the country. Be it a small-sized or mid-sized enterprise, after having replaced the Micro Small and Medium Enterprise registration process, this has become mandatory. The rationale behind the introduction of the scheme via the Micro, Small and Medium Enterprises Development Act, 2006 was to reduce the paperwork involved in the existing MSME Registration. After the introduction of Udyog Aadhaar in 2015, the Micro, Small and Medium Enterprises registration has been made easier- now it can be done both online and offline.

Earlier under the MSME Registration scheme, one had to fill Entrepreneurship Memorandum-I and Entrepreneurship Memorandum-II with the respective District Industrial Center. However, post introduction of Udyog Aadhaar, these two memorandums were replaced by a much simplified Udyog Aadhaar Memorandum. In order to obtain the Udyog Aadhaar Card, you need some personal documents as well as some documents relating to the business sought to be registered. Udyog Aadhaar is an identification registration which is provided by the Ministry of Micro, Small and Medium Enterprises, Government of India.

Essentially given to Micro, Small and Medium Enterprises, it is a twelve digit unique identification number. Moreover, it also allows business enterprises to avail various benefits under different government schemes, for example – loan on the low-interest rate, concession on the electricity bill, stamp duty registration, trademark, bank transactions etc.. Just like normal Aadhaar card, it is an Aadhaar card for business and enterprises. It is also known as Aadhaar for Business.

Introduced in 2015, over 48 lakh micro, small and medium enterprises were registered under the scheme by the year 2018 in India. Often it is said that one cannot cancel or delete a Udyog Aadhaar, rather it can only be updated or modified. However, that is not true. There is only an offline procedure to cancel your Udyog aadhaar registration if you wish to. Unfortunately, there is no online mechanism in place to get done with this process. Here is a step by step process to cancel Udyog aadhaar registration.  

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Step 1: Finding a Udyog Aadhaar Registration Center-

For cancellation of Udyog Aadhaar Registration, find the nearest Udyog Aadhaar Center. It is usually near the District Industrial Center. Generally, every state has a center. At the center, you can get the form for cancelling your Udyog Aadhaar Registration. In case you are unable to find the correct address of the center, simply look at your MSME Registration Certificate. Generally, on the bottom of the certificate, the address and contact details of the District Industrial Center is specified.

Step 2: Application for Cancellation-

For cancellation, write an application to the Udyog Aadhaar Registration Center, specifying all the details of the business activity, whose registration you need to terminate. Also, specify the reason for such termination briefly in the application.

Step 3: Documents Required

Though there is no specific list of the documents that might be required to be produced at the stage of cancellation. But, apart from the application form, carry all necessary documents of the enterprise, your original Udyog Aadhaar Card, bank accounts related to that enterprise, etc. Keep these documents in photocopies as well as originals.

Step 4: Acknowledgement

In case your application and other documents meet all the requirements, request for an acknowledgement by the officer-in-charge at the District Industrial Center. This acknowledgement is necessary as it may be required sometime in the future.

Things to Remember:

  1. Please see that before applying for a cancellation of the Udyog Aadhaar Card, you need to close all business activities related to that enterprise. Moreover, you also need to deactivate all bank accounts linked to that particular enterprise.
  2. Some places will also require you to have a declaratory letter where you state to not avail any of the benefits of government schemes, available under the Udyog Aadhaar Card.
  3. In the initial application for cancellation of the registration, mention the reason for the cancellation briefly and clearly. If the reason or other details relating to the enterprise is not correctly mentioned, there are chances of the application being rejected.
  4. There are no costs involved at the time of registration, update or cancellation of the Udyog Aadhaar Card.

 To sum it together, the myth that Udyog Aadhar registration cannot be cancelled is untrue. It can be done, but it requires a person to visit one of the Udyog Aadhaar Registration Centre and then submit an application for the same. It is advised to carry all the documents related to the company while submitted the application.