What is Udyam (Udyog Aadhar) Registration and How to get it?

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We will discuss what is Udyam Registration and what are the benefits of it.

The idea behind introducing Udyam Registration was to simplify the procedural that business owners had to go through to register their business under Micro Small Medium Enterprise (MSME). The procedural format was quite hectic and a time-consuming bureaucratic process that used to require handling of lots of paperwork. However, with the introduction of Udyam Registration, things have changed and to some extent, have improved.

What is Udyam Registration?

If you own a medium, small or micro-enterprise and you haven’t registered your MSME yet, you should know that on registering your MSME via Udyam Registration, you will be liable to enjoy numerous benefits.

Prior to the UAM system, there used to be a former system of EM-I/II (Entrepreneur Memorandum). Under this system, entrepreneurs used to opt for a heterogeneous system.

Some of them used to rely on the national portal, and some of the states had their portal for carrying out MSME registration. Additionally, few of them used to rely on manual paperwork.

Udyam Registration is nothing but a government registration that is provided along with a recognition certificate and a unique number. This is to certify small/medium businesses or enterprises.

The central motive behind the launch of this facility was to offer a way to the government to provide the maximum benefits to medium or small-scale businesses or industries in India, who are registered via MSME through their Aadhar Card Number.

The owner, director, or proprietor of the entity will provide his/her 12-digit Aadhar Number. This is a compulsory guideline whether the enterprise or entity is a sole proprietor, an LLP, a Private limited company, or anything else. It should have the recognition certificate provided via the MSME registration process.

Who can get Registration?

The organizations which are eligible for Udyam Registration are meant to be either in manufacturing, producing, processing or preservation of goods or in providing the services.

In other words, Traders who buy, sell, import, or export the goods are not even eligible for applying for Udyam Registration.

An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely:

a micro enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;

a small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and

a medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.

Benefits of Udyog Aadhar Registration:

1. After registering their MSME, the applicant will receive the benefits of all the government schemes such as an easy loan, loan without guarantee, loans with subsidized rates of interest etc.

2. The applicant will receive financial support for participating in foreign expos to showcase their products.

3. The applicant will also be eligible for government subsidies.

4. Registration would facilitate opening of current bank accounts in the name of the business and many more benefits.

5. It would also allow businesses to apply for government micro business loans and other such related beneficial schemes.

MSME Registration is free, paperless and based on self- declaration

1. Aadhaar number shall be of the proprietor in the case of a proprietorship firm, of the managing partner in the case of a partnership firm and of a karta in the case of a Hindu Undivided Family (HUF).

2. In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organization or its authorized signatory shall provide its GSTIN and PAN along with its Aadhaar number.

3. Proofs of applicant

4. Cast certificate if any

5. Name of business entity and type of such

6. Details of any previous registration if any

7. Bank Details with IFSC code

8. NIC Code

9. Total amount of investment in plant & machinery

10. Details of DIC nearest to it if needed

After submitting this form, an acknowledgment form is released to the registered email of the applicant containing the unique UAN (Udyog Aadhaar Number). As it is a self-declaration form, there’s no need for any supporting documentation.

Note: (Even though supporting documents are not required, any central or state authority can ask for specific documentation as proof of information provided in the UAM form)

Udhyam Registration Link: -

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