Details about Udyog Aadhar

Udyog Aadhar is the registration process for the companies to list themselves under the Micro Small and Medium Enterprises category of the Government of India. Under this process a unique number is generated for each company and also they are given a recognition certificate as a proof of their registration. The main motive of this process is to provide maximum benefits of the Micro Small and Medium Enterprises category to all the companies present in India and registered through Udyog Aadhar. The director, owner or proprietors of the sole proprietorship company are supposed to provide their Aadhar details whereas all other companies including limited liability partnership firms, partnership firms, private companies, etc. are to provide the Udyog Aadhar number.


Who are eligible for Udyog Aadhar

Almost all companies including sole proprietorship firms, partnership firms, HUF, limited company, production company, LLP company, co operative society, etc. present in the India can apply for Micro Small and Medium Enterprises category if they fulfil the other criteria mentioned in the Micro Small and Medium Enterprises Act 2006. The company applying for the process needs to go through this Act initially and if it meets the set criteria then it can apply for the Udyog Aadhar card and register its company under Micro Small and Medium Enterprises category.


Udyog Aadhar Registration process

The process of application is very simple and easy. The whole process is straightforward in comparison to the initial process. Following are the guidelines to register your company under Micro Small and Medium Enterprises category via Udyog Aadhar.

  • Step 1: Open the official website of the Udyog Aadhar which is https://udyogaadhaar.gov.in/UA/
  • Step 2: Fill in your personal details: you will first have to fill your name along with your 12 digit Aadhar number. Then you will have select “Validate & Generate OTP.” On your registered mobile number you will get the OTP number. Once you enter the OTP number then you will get to select your social category. Out of SC, OBC, ST, General select your social category. It is very important to remember that the people who are filing for Udyog Aadhar online need to have their Aadhar first. If you do not have an Aadhar card then you will first have to apply for an Aadhar card with the Government of India via the concerned department and then apply for Udyog Aadhar.
  • Step 3: Fill the details about the company or companies that you would like to register: here you will have to fill in the name of the company or companies that are to be registered. If you have more than two companies then separate Udyog Aadhar is required for them. So you would have to fill the name of the companies in the Enterprise1 and Enterprise 2 categories. Then you will have to select the type of the organization for all the companies.
  • Step 4: Filling of other details: in this category you will have to fill all the details about the company or companies like the postal address, registered email address, registered mobile number, etc.
  • Step 5: Fill the other details required: in this category you will have to fill the date of commencement of the enterprise and also all other previous information regarding the registration of the company. This category includes information related to registration via SSI, EM1 or EM2 process.
  • Step 6: Give the bank details: under this category you will have to give the company bank details including the account number, name of the bank along with the IFSC code, and branch name.
  • Step 7: Classification of the Company: in this category you will have to give the company’s core business that is whether the company is a manufacturing company or a service providing company. The core business is to be mentioned. In case your company deals in both prospects then you would have to choose that category where the company’s presence is major. For example if the company core process includes 70% of manufacturing process and 30% of service then you will select manufacturing as your core business.
  • Step 8: the total Investment in the company: after all the above details are dully filled then in this category you will have to fill the total number of employees in your company and also the amount of investment made in lakhs in the company. If you have more than one company then you would have to fill details individually for each company that you are registering under this category.
  • Step 9: choose the industry district center and finally accept the declaration: from the list provided on the website select the district centre of the industry and finally accept the declaration and click on the submit button. After the selection you will get an acknowledgement number.

Documents needed for the application of the Udyog Aadhar

  • Name of the business owner along with his Aadhar number.
  • Document stating the social category is selecting OBC, SC and ST.
  • Name of the company along with the details of the initial registration process of the company.
  • Document supporting the type of the organization
  • Documents related to the postal address and the bank details.
  • National Industrial classification code.
  • Pan card details

These documents are to be uploaded online where required. If a person is not filing the form online then he will have to submit the documents with the general manager of the concerned District Industries centre along with the dully filled application form for the Udyog aadhar.


Benefits of the Udyog Aadhar

There are various advantages for companies registering for Udyog Aadhar. One of the best parts is that the whole process of registration is very simple and easy. The process eradicates almost all the paper work as you fill the form online and upload the documents. The various benefits given to the companies registered under the Micro Small and Medium Enterprises category are:

  • Exemption of the excise duty.
  • Exemption in the direct tax law
  • The fees for filling for patent and trademarks are subsidized.
  • Coverage under the CGSE Scheme.
  • You will get loan with subsidized rate of interest under the Government’s loan schemes. The loan amounts are also guaranteed under this category.
  • If your company participates in the foreign business expo the government provides your company extra financial cushion.
  • All other subsidies introduced by the government can be availed by your company thus increasing the overall revenue of the company.
  • Your company will also get electricity at subsidized rate.
  • When your company will apply for the Government tenders then extra exemptions are made for the companies registered under the Micro Small and Medium Enterprises category.

These are major benefits provided to the companies falling under the Micro Small and Medium Enterprises category thus giving an edge to these companies to compete and grow in the competitive world. The main motive of the Government to introduce such scheme is the overall growth of the economy and development of all the category/ sectors of the industries across India.


How to rectify Udyog Aadhar details

If you have received the Udyog Aadhar and if there is any mistake in the card then the process of the editing of the detail is very simple. You will just have to visit the official website of Udyog Aadhar. There is newly launched provision of editing of the Udyog Aadhar details. Click on the button and follow the instructions where you will have to first fill the Udyog Aadhar number along with the name. Then you will receive an OTP on your registered mobile. Fill the OTP number then you will be directed to the webpage where you can make the changes. Make the changes where required and upload the supporting documents.


Frequently Asked Questions

Q- Has UDYOG AADHAR MEMORANDUM replaced EM I/II process?

Yes the UDYOG AADHAR MEMORANDUM process has replaced the EM I/ II process. The notification dated 18-09-2015 filling of EMI/ II are discouraged by the state and union territories. Now efforts are made to popularize the UDYOG AADHAR MEMORANDUM process by the ministry of Micro Small and Medium Enterprises via http://udyogaadhaar.gov.in.


Q- How can one select the NIC code and the core activity of the enterprise?

The NIC code can be selected after the filling of the 12 digit Aadhar number is being validated. After that you can select the core category from the drop down list stated on the website. You can choose any one option from the two available i.e. manufacturing or service. If a company deals in both the process then the majority of the company process is to be selected.


Q- How to solve the confusion which is being created while filing for the number of employees and the amount of investment in the form?

As per Micro Small and Medium Enterprises Act 2006 the number of employees does not have any relation with the size or type of the enterprise. Under the UDYOG AADHAR MEMORANDUM one needs to fill only the number of the employees working with the company. In the classification of the Micro Small and Medium Enterprises investment in land, buildings, etc. are not materialized. According to the Micro Small and Medium Enterprises Act Investment in plant and machinery are to be taken into consideration while computing the investment amount.


Q- Is Aadhar number mandatory for filling of the UDYOG AADHAR MEMORANDUM?

The process of the filling for the Udyog Aadhar can be done online by individual owners of the enterprises if they have their Aadhar number. However if you do not have aadhar number then you can fill the form offline that is in the paper form with the general manager of the District Industries centre. The whole process can also be notified by the gazette dated 18-09-2015. The person having the Aadhar number do enjoy the benefits of filling the form online where the process is very simple and convenient also.


Q- Are multiple systems of registration available after the introduction of the Udyog Aadhar memorandum?

All the offline or online registration process for the registration of the companies under the Micro Small and Medium Enterprises created and maintained by the Union Territory/ State/ Central Government are to cease the new application for the registration. However these platforms will be allowed to exist for a certain period of time so that the data can be accessed and used in the process of the decision making. From now on there will be only one platform for the registration process and that would be the Udyog Aadhar Memorandum.


Q- How can a company apply for registration on Udyog Aadhaar?

Ans The Udyog Aadhar Registration is a completely online process which is totally free of cost.
The SME (Small and Medium Scale Enterprises) owner needs to fill a one-page form that he can do either online or offline.
The MSME has to self-certify its existence and provide his self-certified certificates and the registration number would be generated.


Q- Is MSME registration now converted to Udyog Aadhar?

Yes, MSME registration is converted into Udyog Aadhar registration.


Q- How do I register Udyog Aadhar for the service sector?

Ans Any service sector can apply for Udyog Aadhar registration free of cost with maximum of Rs. 5 Cr investment in equipment. The aadhaar card number and the basic details like bank details,activity is mandatorily for official registration link


Q- What is the validity of the Udyog Aadhaar Memorandum from the date of registration?

Ans Lifetime validity is there for Udyog Aadhaar Memorandum from the date of registration.


Q- How do I cancel Udyog Aadhar registration?

Ans First find the nearest Udyog Aadhaar Center and fill the form for cancelling your Udyog Aadhaar Registration.


Q- Is Udyog Aadhaar as a Shop ACT License?

Ans No both are completely different.Shop Act Registration basically regulated by Local State laws whereas Udyog Aadhaar Registration regulated by Central law.


Q- What is the difference between an LLP registered through an MCA and the one through Udyog Aadhar?

Ans LLP cannot be registered through udyog aadhaar as it can registered only with MCA.only..Udyog Aadhaar is just an MSME registration.


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