Udyog Aadhar Registration: Fees, Procedure, Documents
The concept of Udyog Aadhar was launched by the Ministry of Micro Small and Medium Enterprises, together with the Government of India. The basic aim behind this strategy was to facilitate registration of Micro Small and Medium Enterprises. In this blog, we will talk about the Udyog Aadhar Registration Fees and Process.
Concept of Udyog Aadhar
In India, any company that wants to list itself as an MSME needs to obtain Udyog Aadhar Registration. This process provides a twelve digit unique identification number, and a certificate of registration to each business registered.
Further, any business entity can acquire this registration by filing the form on the official portal. The term “any business entity” includes the following:
- Sole Proprietorship Firm;
- Hindu Undivided Family;
- One Person Company;
- Partnership Firm;
- Limited Liability Partnership;
- Co-operative Society;
- Association of Persons.
However, before applying for Udyog Aadhar Registration, enterprises must check the criteria prescribed by the MSMED Act, 2006.
Furthermore, the government has prescribed no Udyog Aadhar Registration Fees. That means the registration process is Free of Cost.
Need for Udyog Aadhar Registration
In India, the MSME sector acts as a foundation stone for the economic growth and development of the country. There are over 42.5 million units operating in this sector. Further, this sector contributes more than 45% of the country’s total manufacturing output.
Therefore, to facilitate the efforts of this sector, the MSME Ministry, together with the Central Government, launched the Udyog Aadhar Registration. As the primary motive of the registration is to promote growth and provide benefits to the businesses registered in it.
Another reason was the documentation and paperwork involved in the process of MSME Registration. Also, the owner of the business was required to apply for both as MSME and Small Industry.
Udyog Aadhar Memorandum
It is a single page self-certification form, wherein an applicant discloses all the information related to business. The term “information” denotes the existence of the entity, bank account number, and details, particulars of the applicant, etc.
Further, the government has exempted the fees for Udyog Aadhar Memorandum. After the submission of the form, an acknowledgement will be sent on the registered email address. This acknowledgement will also include Unique Aadhar Number (UAN).
The entities registered before the MSMED Act, 2006, are not needed to file Udyog Aadhar Memorandum. However, such entities must have small scale registration or Entrepreneurship Memorandum I or Entrepreneurship Memorandum II.
Entities Eligible for Udyog Aadhar Registration
The Entities eligible for Udyog Aadhar Registration are as follows:
- Micro Enterprises: The entities with an Investment amount up to Rs 1 crore and Annual Turnover up to Rs 5 crore.
- Small Enterprise: The entities with an Investment amount up to Rs 10 crore and Annual Turnover up to Rs 50 crore.
- Medium Enterprise: The entities with an Investment amount up to Rs 20 crore and Annual Turnover up to Rs 100 crore.
- As per the latest announcement made by our Finance Minister, Mrs Nirmala Sitharaman, on 13 May 2020, the definition of MSME has been changed. Now, the difference between the manufacturing and service sectors has been eliminated. Further, the Investment Limits have also been revised, and a turnover criterion has been introduced.
- According to the notification passed by MSME Ministry on 01 June 2020, the new definition of MSME has come into effect from 01 July 2020.
- Lastly, the government has extended the period of restructuring scheme for the MSME Sector till 31 March 2020.
Benefits of Udyog Aadhar MSME Registration
In India, the benefits of Udyog Aadhar are as follows:
- Assists in getting Bank Loan without Mortgage or Collateral Security;
- Provides Tax Exemption of Direct Tax;
- Provides Lower Interest Rates;
- Gives 50% grant in Patent Registration;
- Reimbursement of ISO Certification;
- Easy Procedure to obtain License and Approvals;
- Provides Electricity in Concessional Rates;
- Offers Government Subsidies;
- Ease in Opening Current Bank Accounts;
- Subsidies in Barcode Registration;
- Subsidies in Manufacturing and Production Sector Policies;
- Provides Octroi Benefits under the Package Scheme of Incentive, 1993;
- Gives Protection against Delayed Payments;
- Provides subsidies on NSIC Performance and Credit Ratings;
- Coverage under the CGSE Scheme.
Important Points for Udyog Aadhar Registration
In India, the points to consider for Udyog Aadhar Registration Fees and Process are as follows:
- The enterprise applying for registration will be known as “Udyam”;
- The portal for Udyog Aadhar Registration will be known as “Udyam Registration Portal ”;
- A unique identification number will be given to the entity after registration;
- The Certificate of Registration will be issued online to the registered entity;
- The Certificate of Registration will have a QR code, from which the details of the registered enterprise can easily be accessed on the official portal;
- The registration certificate has lifetime validity. That means there is no need to apply for Renewal of Registration;
- There is no Udyog Aadhar Registration Fees. That means the registration process is Free of Cost;
Documents Required for Udyog Aadhar MSME Registration
The documents required for Udyog Aadhar Registration are as follows:
- Name and Aadhar details of the Applicant;
- Certificate for Social Category, such as OBC, SC, and ST;
- Name of the Enterprise;
- Business Nature of the Entity;
- Address Proof of the Enterprise;
- Details and Bank Account Number of the Enterprise;
- Total Count of the Workers;
- Mobile Number and E-mail ID of the Applicant;
- PAN (Permanent Account Number) and Total Investments made by the Company.
Process for Udyam Registration
The steps involved in the process of Registration for Udyog Aadhar are as follows:
- First, the applicant needs to visit the government official website.
- After that, he/she needs to fill in the required details, together with the Name and Aadhar Number of the Applicant;
- The term “required” include details such as bank account number, IFSC code, mobile number, social category certificate, postal address, e-mail address;
- After that, click on the option saying “Validate and Generate OTP”;
- Now, enter the OTP received on the registered email address and contact number;
- The applicant will now be redirected towards the Verification;
- Now, the applicant needs to fill information regarding the following:
- Name of Enterprise;
- Nature of Enterprise;
- Main Business Activity;
- District Entity Number;
- Total Investment.
- The applicant must recheck all the information and details provided to ensure accuracy;
- Now, scroll down and click on “submit”;
- The applicant will receive another OTP (One Time Password) on the registered contact number;
- Lastly, click on the “Submit” button to finish the application form.
Udyog Aadhar Registration Fees
The government has prescribed no Udyog Aadhar Registration Fees for the registration process. That means the registration process is Free of Cost.
Procedure to Rectify Details of Udyog Aadhar
The government has recently launched the provision for the rectification of Udyog Aadhar. The steps included in the Procedure of Rectification are as follows:
- Firstly, visit the official portal for Udyog Aadhar;
- After that, fill the Name and Udyog Aadhar Number for the Applicant;
- An OTP (One Time Password) will be received on the registered mobile number;
- After that, enter the OTP;
- The Applicant will be redirected to the webpage where he/she can make modifications;
- Now, the applicant needs to make the changes and upload the necessary documents;
- Lastly, click on the Submit button to complete the form.
Udyog Aadhaar Registration is a simple and straightforward way to register an MSME or SME in India. It offers several benefits to the entity, such as financial support and access to government subsidies. Further, the registration process is free of cost as the government has specified no Udyog Aadhar Registration Fees.
Lastly, connect with our experts at Swarit Advisors to receive end-to-end assistance for your MSME Registration.
Also, Read: What are the benefits of MSME Registration?