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Udyog Aadhar is a type of identity card which is required for any startup of a business for micro, small and medium enterprises under the Micro, Small and Medium Enterprise Development Act, 2006. Prior to this, the sector was defined by the Industrial Development and Regulation Act, 1951. It consists of a 12-digit number unique id number. It gives legality to any form of business enterprises or for opening a bank account, GST registration for claiming any incentive from the Government.
Earlier UDYOG AADHAR is known by the name of SMALL SCALE INDUSTRIES CERTIFICATE (SSI). Earlier there was no online registration for this kind of scheme. But now with the development of technology this scheme registration is made online. To promote the ease of registration this online work is done by the MINISTRY OF MSME (MEDIUM, SMALL AND MEDIUM ENTERPRISES).
Prior to October 2016, to get yourself registered as MSME’s one needs to carry out a lot of paperwork and fill Employment Memorandum I and II. However, Kamath Committee on Financial Structure of MSME sector recommended a single window clearance system
The government of India announces various incentives from time to time to promote MSME through MSMED Act 2006. For which you require registration which is provided by Udyog Aadhar.
Apart from it, Government in a phase-wise manner enhances the list of reserved products to be brought from MSME’s only.
Moreover, as per Trademark Rules 2017, special provision has been carved out for micro and small industries. As per schedule A of the rules, the fees for filing a trademark application for MSME’s is only 50% as compared to another form of business.
Ahmedabad in India is most apt that Udyog Aadhaar flourishes in this place. The city upholds many political appraisals from a very long time including the Mahatma Gandhi, PM and even the current Government. The many historical monuments and significant aspects maintains that Ahmedabad is culturally important. there are various small scale businesses in Ahmedabad which can be benefited from the Udyog Aadhaar.
Having Udyog Aadhar is not mandatory still it is advisable for the units/enterprises to have it as It will enable the units/enterprises to seek information and apply online about various services being offered by all Ministries and Departments. Earlier only medium enterprises were insisted to file EM2 as it was very cumbersome to file, the simplified Udyog Aadhaar will enable all enterprises to file and register themselves so that simply by using Udyog Aadhaar Number, they can access other services. The process of obtaining Udyog Aadhaar Number is free-of-cost, paper-less and results in instant registration.
Earlier in SSI or MSME registration in Ahmedabad one has to go through lots of paperwork but now it has been changed to an online form where a person has to fill 2 forms namely Entrepreneur Memorandum-1 and Entrepreneur Memorandum-2 instead of different types of forms offline.
There is Udyog Aadhar memorandum which is the registration form wherein MSME certifies its existence and provides mandatory information such as bank account details, etc. After submitting this form, an acknowledgment form is released to the email id of the applicant who has registered with the unique Udyog Aadhar Number. Here, no documents’ proof is required as it is a self-declaration form. One must know the procedure as follows:
1. The SME (Small and Medium Enterprises) has to fill a form whether offline or online. For online filing of the form, they have to subscribe to www.msme.gov.in.
2. Individual registration must be done for different types of industries.
3. In this form, the MSME has to self-certify its existence, details of bank account, activity, ownership, etc.
4. During the registration process, the individual needs to provide his all self-certified documents as required for this Aadhar registration in Ahmedabad.
5. This registration is free of cost.
6. After filling all the details of the form and upload it then the registration number would be generated and mailed to the email id as given in the UAM (UDYOG AADHAR MEMORANDUM) which contains the Udhyog Aadhar Number.
The minimum requirement for Udyog Aadhar registration is that most importantly the person must have the Udyog Aadhar Number which is of 12 digits.
Twelve digit Aadhaar number which is issued to the applicant.
This Aadhaar number in case of Proprietary Enterprise must be of the Managing Partner, of Authorised Partner for Partnership Enterprise and of Authorised Person for Other forms of Enterprises
|Name of Owner/Promoter||The name of the applicant as provided in the Aadhaar Card|
|Category||General / Scheduled Tribe (ST)/ Scheduled Caste (SC) / Other Backward Castes (OBC)|
|Business Name||Name of the of Entity under which it is conducting its business. One applicant could have more than one enterprises and each one could be registered individually with the same Aadhaar Number for a separate Udyog Aadhaar|
|Type of Organization||Type of Business Entity or Legal Entity. (Proprietorship, Partnership Firm, Hindu Undivided Family, Private Limited Company, Co-Operative, Public Limited Company, Self Help Group, LLP, Others)|
|Address||Postal Address of the business for communication purposes including contact numbers and email address|
|Date of Commencement||The commencement date of the respective businesses|
|Previous Registration Details (if any)||Details of any previous MSME registration|
|Bank Details||Banking details of the of the company which includes Bank Account number and IFSC Code|
|Key Activity||Key areas of activity of the business –service or manufacturing|
|National Industrial Classification (NIC) Code||The NIC Code must be entered from the National Industrial Classification handbook. The Applicant might select multiple National Industrial Classification-2008 (NIC) Codes for including all of its activities.|
|Number of persons employed||The number of employees in the business|
|Investment in Plant & Machinery / Equipment||The total amount of investment in terms of machinery and equipment by the business|
|District Industry Center (DIC)||The details of the DIC (District Industry Center) nearest to such business, if needed|
The benefits are:-
1. Once you are registered under the MSME, you are eligible for the all most of the government scheme regarding the funding like
a) Without Guarantee Loan
b) Easy Loan
c) Low Interested Rate Loan
2. You will get the financial support from the government to the participate in the foreign expo.
3. You will get the various government subsidies
4. Credit prescription (Priority sector lending)
5. differential rates of interest etc
6. Excise Exemption Scheme
7. An exemption under Direct Tax Laws.
8. Statutory support such as reservation and the Interest on Delayed Payments Act. (It is to be noted that the Banking Laws, Excise Law, and the Direct Taxes Law have incorporated the word MSME in their exemption notifications.
9. States/UTs have their own package of facilities and incentives for small scale. They relate to the development of industrial estates, tax subsidies, power tariff subsidies, capital investment subsidies and other support.
10. Both the Centre and the State, whether under law or otherwise, target their incentives and support packages generally to units registered with them.
Medium enterprise engaged in the manufacture or production of goods has to compulsorily register under the MSMED Act. For other Enterprises, the registration is discretionary or optional.
MSME registration is the procedure to get your firm registered under MSME development Act for SME benefits.
Any person, having valid Aadhaar Number, can apply for MSME Registration Online in Ahmedabad.
MSME Registration can typically be obtained in 01 working days.
NIC code can be selected once the aadhar number is validated and major activity (manufacturing or service) is selected. In order to simplify the selection of appropriate NIC code, a three-stage drop-down list is available to the users.
Manufacturing Sector a. Micro Enterprises - Till 25 lakh b. Small Enterprises - 25 lakh - 5 cr. c. Medium Enterprises - 5cr-10cr.
For the purpose of Service Sector a. Micro Enterprises - Till 10 lakh b. Small Enterprises - 10 lakh-2 cr c. Medium Enterprises - 2cr -5 cr.
The role of facilitating the creation and growth of enterprises in the States/UTs is not proposed to change in any manner whatsoever through UAM. The concept of “Udyog Bandhu” may therefore not be affected by UAM.
At present Aadhaar Number is mandatory for registration under UAM. However, the Government of India will find a way out for covering those cases where Aadhaar Number is not available.
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