To provide a unique identification to each business operating at the micro, small or medium level, the government launched the Udyog Aadhar in September 2015. This identification number is issued by the Ministry of Micro, Small and Medium Enterprises. However, the scheme has now been rechristened as Udyam, for which all the MSMEs – new and existing – have to register again on the government portal. Here is everything you need to know about Udyog Aadhaar also known as Aadhaar for Business and Udyam.
What is Udyog Aadhar / Udyam?
Udyog Aadhar was a 12-digit unique identification number provided by the government to all MSMEs. This number would be automatically allotted to the businesses, upon registration. Since, Udyog Aadhar is now Udyam, any company which comes under the definition of MSME, needs to obtain the 19-digit Udyam registration number for their enterprise. Udyam registration number can be applied for online, on the official Udyam portal.
Udyam / Udyog Aadhar benefits
There are a number of benefits and uses of Udyog Aadhaar:
- Helps in getting collateral-free loans from banks.
- Registered MSMEs get exclusive consideration to participate in international trade fairs.
- Allows for waiver of stamp duty and registration fees.
- Exemptions are available under the direct tax laws.
- Subsidy is available for barcode registration.
- Subsidy on NSIC performance and credit ratings.
- Under the CLCSS scheme, 15% subsidy is available for technology upgradation.
- Reimbursement of payment made towards obtaining ISO certification.
How is enterprise classified under MSME?
Micro enterprise: This refers to enterprises, where the investment in plant equipment and machinery does not exceed Rs one crore and the turnover does not exceed Rs five crores.
Small enterprise: This refers to enterprises, where the investment in plant, equipment and machinery does not exceed Rs 10 crores and the turnover does not exceed Rs 50 crores.
Medium enterprise: This refers to enterprises, where the investment in plant, equipment and machinery does not exceed Rs 50 crores and the turnover does not exceed Rs 250 crores.
See also: All about UIDAI and Aadhaar
Things you need to know about Udyog Aadhar registration
- A 19-digit permanent registration number is given to each enterprise after registration. This registration number does not require renewal.
- An enterprise that is registered under this process will be known as Udyam and the permanent identity number assigned to it will be known as ‘Udyam registration number’.
- After completion of registration, a certificate will be issued online.
- This certificate will have a QR Code, from which the details of the enterprise can be accessed.
- The process for Udyam registration is completely online, paperless and based on self-declaration. It is fully free and no costs or charges are required to be paid at any stage.
- To register as an MSME, apart from the Aadhaar number, no other documents or proof are required to be uploaded.
- In the case of a proprietorship firm the Aadhaar number of the proprietor needs to be given, while in case of a partnership firm the Aadhaar of the managing partner should be given and for a Hindu Undivided Family (HUF) the Aadhaar of the karta should be given.
- The PAN and GST-linked details on the investment and turnover of the enterprise, will be synced automatically from the government database.
- All enterprises that have UAM or EM-II registration or any other registration issued under the Ministry of MSME, will have to register themselves again.
- Enterprises can file only one Udyam registration. However, any number of activities, such as manufacturing or service, or both, can be added under a single registration.
How to register a new company for Udyam?
Step 1: Visit the Udyam Registration Portal (click here) and click on the ‘For New Entrepreneur’ option.
Step 2: You will be redirected to a new page, where you need to mention the Aadhaar number of the proprietor or managing director or Karta. Enter the name of the entrepreneur.
Step 3: Validate your Aadhaar using OTP. Fill in the application. Your certificate will be generated in due time.
How to register an existing enterprise for Udyam?
All existing enterprises registered under Udyog Aadhaar need to register again on the Udyam Registration portal. Business owners should know that the existing enterprises registered prior to June 30, 2020, were valid only for a period up to March 31, 2021. Apart from this, any enterprise registered with any other organisation under the Ministry of MSME, shall register itself under Udyam Registration.
Step 1: Visit the Udyam Registration portal (click here) and click on ‘For those already having registration as UAM’ option.
Step 2: Enter your Udyog Aadhaar number and validate it using OTP.
Step 3: Enter the requisite details and your certificate will be generated in due time.
How to print the Udyog Aadhar certificate or Udyam certificate?
Here is how to print your Udyam Certificate from the portal:
Step 1: Visit Udyam Portal and click on ‘Print/Verify’ option from the top menu.
Step 2: Select the first option, ‘Print Udyam Certificate’, from the drop-down menu.
Step 3: Enter the 19-digit Udyam Registration number and mobile number as mentioned in the application.
Step 4: Once validated, you will be redirected to the ‘Print’ option.
What is Udyog Aadhar used for?
Udyog Aadhaar or Udyam offers a number of benefits to business owners, including subsidies and exemptions from taxes.
Who can apply for Udyog Aadhar?
All kinds of business owners can apply for Udyog Aadhaar.