The Micro Small and Medium Enterprises (MSME) sector has been crucial to India’s development over the past five decades. Other than providing large employment opportunities at lower capital cost, MSMEs also aid in the industrialization of rural and backward areas, thereby reducing the regional imbalances, assuring a more effective equitable distribution of national income and wealth.
Although the Govt of India has many initiatives for the MSMEs and SSIs, the respective state governments are responsible for the promotion and development of small businesses. The Micro, Small and Medium Enterprises Development (MSMED) Act was notified in 2006 to provide subsidies and exemptions to MSMEs. According to the Act, all enterprises have to register but most enterprises are not because of the amount of paperwork involved. The ministry, therefore, in 2015, decided to put in place the Udyog Aadhaar, which ensures easy registration and wider coverage of MSMEs to avail of the benefits under various central and state-run schemes.
A UAM is a one-page registration form in which the MSME self certifies its existence, bank account details, owner/promoter’s Aadhar details and other requisite information, free of cost.
Once the form is submitted, an acknowledgement form containing a unique Udyog Aadhaar Number (UAN) of the applicant will be sent through email.
As this is a self-declaration form, no supporting documents are required to be uploaded or submitted. That said, any state or central authority can ask for any documentation as proof of the information provided in the Udyog Aadhaar Memorandum.
The following are the required details to be filled in the form
12-digit Aadhaar number issued to the applicant
Name of the Owner as printed on the Aadhar
The applicant must click on Validate Aadhaar button for verification of Aadhaar. This is required for the user to continue with his/her form.
Reset The applicant can click on reset button to clear the field of Aadhaar No. and name of the owner for different Aadhaar.
The applicant may select any of the categories thus mentioned: General, Scheduled Caste, Scheduled Tribe or Other Backward Castes (OBC). The proof of the same may be asked, if and when required.
This name must be the same as the applicant wants his/her enterprise to be known in public as a legal entity. It is to be noted that one applicant can have more than one enterprise registered in his/her name with the same Aadhar number.
Type of organization - The appropriate type of organization for the enterprise has to be selected. Only one UAN will be issued for each enterprise.
Postal address - The complete postal address of the enterprise including state, district, pin code, mobile number and email must be filed in.
Previous registration details - If the applicant’s enterprise, for which the UAN is being applied, is already issued a valid EM-I/II by the concerned GM (DIC) as per the MSMED Act 2006 or the SSI registration prevailing prior to the said Act, such a number must be mentioned in the appropriate place.
Bank details - The applicant must provide the bank account details that are used for running the business. The details include the account number, bank branch, IFSC. All details can be found out on the account holder’s cheque book or can also be found out from the concerned bank directly.
Major activity - The major activity, that is, either “manufacturing” or “service” must be chosen by the enterprise for Udyog Aadhaar. If the business engages in both, but manufacturing happens to be the major portion of the business, then manufacturing as a major activity, and vice versa has to be mentioned.
National Industry Classification Code (NIC Code) - The applicant may choose multiple National Industrial Classification-2008 (NIC) Codes to include all their activities by clicking “Add More” button. If Manufacturing has to be added, then select “Manufacturing” radio button and continue by clicking “Add More” button.
These codes are prepared by the Central Statistical Organisation (CSO) under the Ministry of Statistics and Program implementation, Government of India.
Person employed - The total number of people who are directly paid for their work by the enterprise must be mentioned.
Investment in Plant & Machinery/Equipment - When asked to calculate the total investment, the original one (purchase value of items) is to be taken into account, excluding the cost of pollution control, research and development, industrial safety devices, and such other items as may be specified, by notification of RBI.
DIC - Based on the location of the enterprise, the location of DIC has to be filled. This section will be active and will show an option only when there is a chance of more than one DIC exists in the district.
Submit - Once the “Submit” button is hit the acknowledgement number will be generated.
Find what are the Advantages of MSME Registrations in India.