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 Micro, Small and Medium Enterprises Act, of 2006 introduced the MSME (micro, small and medium enterprises) industries in an attempt to support small and medium-scale business establishments. The industries under MSME are units that deal with production, manufacturing, storage or processing of goods and commodities. The businesses under MSME belong either to the manufacturing or service sectors. The Ministry of MSME (MoMSME) governs the various activities and regulates the various benefits granted to these industries.
The MSME sector plays a vital role in uplifting the economy of the country, contributing to about 27% of the country’s GDP (Gross Domestic Product). Additionally, the MSME industries also play a role in expanding employment opportunities across the country. Thus, it paves the way for industrialization of rural and semi urban areas, thereby alleviating the disparities within the country.
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, the 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.
Check Here to more about : https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
| Type of Enterprise | Threshold for Turnover | Threshold for Investment |
| Micro Enterprise | Up to ₹ 5 crore | Up to ₹ 1 crore |
| Small Enterprise | ₹ 5 crore to ₹50 crore | ₹ 1 crore to ₹ 10 crore |
| Medium Enterprise | ₹50 crore to ₹100 crore |
₹10 crore to ₹20 crores
|
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.
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 not 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.
The registration in Udyog Aadhar 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 lay person.
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: https://uidai.gov.in/ 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.
