Who Can Apply for Udyog Aadhar Registration?

A business, whether it is a public or private company or any other corporate entity, can apply for Udyog Aadhar registration, provided it is into the manufacturing or servicing sector. Further, it is mandatory that the turnover and investment of the establishment is within the stipulated levels.

The MSME Act of 2006 supports small and medium businesses involved in production, manufacturing, storage, and processing. Overseen by the Ministry of MSME, these businesses operate in manufacturing and service sectors with various benefits. The sector contributes about 27% of the GDP and creates jobs across the country. It also helps develop rural and semi-urban areas by encouraging industrial growth and reducing regional disparities. With its impact on economic activity and employment, MSMEs play a key role in strengthening the economy and expanding business opportunities in different regions.

Who Is Eligible for Udyog Aadhar Registration?

Micro, Small, and Medium Enterprises (MSMEs) can apply for Udyog Aadhar registration. Eligible entities include

• Sole Proprietorships,
• Partnerships,
• Private Limited Companies,
• Hindu Undivided Families (HUFs), and others.

Eligibility to Apply for Udyog Registration

The Udyog Aadhar facility was launched by the government of India to promote and provide support for the MSME industries. It is similar to Aadhar but acts as an identification system for businesses. By registering in Udyog Aadhar, businesses can avail the benefits initiated by the government to support the MSME industries. While the Udyog Aadhar allows MSME industries to register themselves, a question arises with respect to the eligibility of the industries that can be called MSMEs. The table below demarcates the threshold for turnover and investment respectively and only those industries can make an application with Udyog Aadhar.

The businesses that fall within the threshold levels mentioned above, provided they belong to the manufacturing or service sectors, can make an application to be registered as an MSME through the Udyog Aadhar portal. These MSME industries can get registered regardless of the type of business entity they are incorporated into like, proprietorship, partnership, Limited Liability Partnerships (LLP), private or public limited companies, Hindu Undivided Family (HUF), Co-operative societies, trusts, etc.

The registration in Udyog Aadhar is, however, not mandatory. But without the MSME registration certificate one will not be eligible to utilize the benefits under the MSMED, 2006 Act.

Composite Criteria: Investment in Plant or Machinery and Turnover

The classification of Micro, Small and Medium Enterprises (MSMEs) uses a combined indexing whereby both investment in plant or machinery and annual turnover are considered. This is useful to know as the eligibility criterion for all kinds of government benefits and schemes made available to businesses.

These criteria ensure that MSMEs receive proper classification, allowing them to access financial assistance, subsidies, and growth opportunities.

Revised Classification Criteria for MSMEs

The Government, via the Union Budget 2025, has brought some substantial amendments to the classification criteria for Micro, Small and Medium Enterprises (MSMEs). Investment thresholds have thus been raised two and a half times, while turnover limits have been doubled. The reform therefore intends to consolidate MSMEs into growth and job creation.

The table below outlines the updated classification criteria announced in the Union Budget 2025:

Procedure for Registering the MSME:

• The applicant must log in to the official website for Registering MSME
• On selecting the option for new entrepreneurs, who are registering their MSME establishment for the first time, the applicant is navigated to the next page
• The applicant has to fill in the fields ‘Aadhar Number’ and ‘Name of Entrepreneur’. After checking the disclaimer, the button ‘Validate and Generate OTP’ must be clicked
• After the OTP (One Time Password) is received in the registered mobile number, the same is entered in the portal and the information is validated
• If there are no disparities, the applicant is navigated to a form
• The required details like, ‘Name of Enterprise’, ‘Type of Organization’, ‘National Industry Classification Code’, ‘Major Activity’ etc are filled in the form
• After checking the data thus filled, the form has to be submitted
• An OTP is sent to the registered mobile number
• The OTP must be entered and on clicking the ‘Submit’ button, the application is completed.

Udyog Aadhar registration is completely hassle-free and is free of cost. The Udyog Aadhar certificate can be printed once the registration is completed. The entire process is fairly easy and can be carried out even by a layperson.

Along with the application, the Udyog Aadhar Memorandum (UAM), a self-declaration form, that certifies the existence of the business, the bank account details, the applicant’s Aadhar details, etc must be furnished. There are no charges to file the UAM and the Udyog Aadhar Number (UAN) which serves as an acknowledgment for the registration of the application, will be sent to the email ID mentioned in the UAM.

Information to be Furnished for Udyog Aadhar Registration:

• Aadhar card of the applicant: 
• Applicant’s name and social category
• Name of the business establishment
• Type of business entity
• Details of the bank in which the current account is opened
• Key activities of the business
• National Industrial Classification (NIC) code
• Total number of persons in the payroll of the MSME.
• Details pertaining to the district industry center
• Date of commencement of business.  

Conclusion

Udyog Aadhar registration helps MSMEs access financial aid and government schemes. Proper classification ensures compliance with the latest investment and turnover limits. Navigating these updates can be complex without the right expertise. Professional assistance streamlines the process and prevents errors. Get expert support to secure your MSME benefits easily.