A business which wants to register as an MSME has to file for online Udyog Aadhaar Registration. Online Udyog Aadhaar registration is a simplified registration process introduced in place of Entrepreneur Memorandum -I and Entrepreneur Memorandum – II. It is a voluntary registration based on a self declaration. It enables a Micro, Small & Medium Enterprises to access numerous benefits given to these units. This registration is for running unit not for upcoming units. The registration is simplified and the Ministry of MSME has introduced an online one page Udyog Aadhaar memorandum which can be filled now on by the micro, small and medium enterprises.
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The proposed registration form for Online Udyog aadhaar number is a self-declaration under which the MSME will self-certify its existence, promoters or owners Aadhaar details, bank account details and other minimum basis requirement required.
The Government strives to create a structure wherein the business could be carried out with ease. It is not required for the existing businesses registered with MSME or small-scale industry to acquire Udyog Aadhaar though they may apply for it.
The MSME registrations created and maintained by Central/State/UT Governments, whether online or offline should cease to be registered anymore which implies that there should be only one system one system i.e. UAN for the registrations of new MSME units notified dated 18-09-15 henceforth.
The Genesis of Udyog Aadhaar
A large number of enterprises in India simply remains unregistered due to the cumbersome paperwork involved in the process. This does not let them avail the benefits of the schemes of the government for MSME’s. Institutions engaged in financing the MSME sector had recommended the universalization of the registration. Thus, the concept of ease of registration was originated such that MSME’s are able to avail the benefits under various Schemes of Central/ State governments.
Udyog Aadhaar registration
The objective of online Udyog Aadhaar registration process is to encourage the online filing of MSME registration and to make the registration process simple with an online and self-certification registration form. In this form, the MSME will self-certify its existence, bank account, employment, business activity details and ownership details and other information.
Documents and Information Required for Online Udyog Aadhaar Registration
- Aadhar Number of an applicant- It is a unique 12 digit no issued to every individual. Only a natural person can apply on the behalf of a business.
- Details of the applicant
- Name -The applicant name as mentioned on the Aadhaar Card issued by UIDAI.
- Social category– Whether applicant fall in General/ Scheduled Caste/ Scheduled Tribe/ Other Backward Caste has to be specified along with the documentary proof of the same as required by the concerned authority. Normally, a proof is required to be furnished if the applicant does not belong to the General Category.
- Name of Enterprise– An applicant can do more than one business in different names. Each business can be registered for a separate Udyog Aadhaar under the same Aadhaar Number as one individual is allotted only one Aadhaar number. A person may carry on multiple business activities at one time or may become a partner or director in more than one firm or company respectively.
- Form of Business– An applicant has to specifically select the form in which the business is being carried on. Different forms of business can be a Proprietorship, Partnership, Limited Liability partnership( LLP), Company Registration etc.
- Address of the business – The applicant needs to mention the address of the place at which business is being carried on along with other contact details like mobile and email address.
- Date of Commencement – The date on which businesses were started.
- Previous Registration Details – If a business already registered as MSME is filing for Udyog Aadhaar Number then it must provide details of previous registration in the application form.
- Bank Details – all the details of bank account of the company is to be mentioned in the application form including Bank Account number and IFSC Code.
- Major Activity – Nature of activity of the business is to be provided along with the code specified for it.
- NIC Code – These registrations are location specific and the applicant must mention National Industrial Classification Code (NIC Code). Each location is allotted a code number which can be taken from National Industrial Classification Handbook. Click here to download
- Person employed – The total number of people employed in the business. Investment in Plant Machinery / Equipment – Amount of money invested in terms of machinery and equipment by the business.
- DIC – Details of the District Industry Center nearest to the business, if required.