MSME / Udyog Aadhaar Registration

What is MSME Registration / Udyog Aadhaar?

MSME stands for Micro, small & medium enterprises. As per government, it is not mandatory to get registered under MSME or to go for MSME registration online but it is suggested that small & medium enterprises should go for it as it can provide you various benefits in the form of business set up, taxation, credit facilities, loans etc. Micro, small and medium enterprises involved in manufacturing or service area can obtain registration under MSME act.

Who should get Udyog Aadhaar Registration?

Any type of business entity can obtain Udyog Aadhaar registration online such as sole proprietors, Partnership firms, HUF’s, Public limited companies, Private limited companies, Limited Liability partnerships, One person companies, Co-operative societies, Production companies, any AOP’s, other undertakings etc.

In order to obtain MSME registration, there is a set specified criterion that a business entity needs to meet in order to classify themselves as Micro, small and medium enterprises. There is a lot of paper work you need to do at the time of starting a business and getting MSME or SSI registration through manual process. Therefore, it is advisable that you can now easily do MSME registration online and can obtain MSME certificate.

Now, Udyog Aadhaar registration/MSME registration is completely an online process and after registration you can avail various government benefits such as easy loan approvals, subsidies etc.

New Udyog Aadhaar replaces SSI / MSME Registration

As per the gazette notification from the government dated 18.09.2015, MSME registration process is replaced by new Udyog Aadhaar registration. New Udyog Aadhaar registration process is a very simple one page format as compared to the complex registration process used by the businesses before. Any individual having Aadhaar number can register for Udyog Aadhaar registration at UAM portal online. The following details are required at the time of registration –

Why Udyog Aadhaar registration?

Udyog Aadhaar registration provides various benefits to the entrepreneur’s in the form of subsidies like power, tax, bank benefits, quick loan approvals, interest on loan on preferential rates to MSME’s, sales tax exemption & excise tax exemption to the enterprises at their initial stages etc.

Benefits of MSME/ Udyog Aadhaar Registration

Udyog Aadhaar registration is a very simple process by which an enterprise can easily obtain their MSME certificate online. Previously, you need to do lots of paperwork in order to obtain MSME registration. Now, the new online process is well-organized & systematized and providing enterprises with the maximum benefits. Hence, there are many benefits of obtaining Udyog Aadhaar registration which are as follows –

How Udyog Aadhaar has simplified the process of registration for MSME?

Introduction of Udyog Aadhaar has simplified the process of MSME registration and now it becomes easy for the enterprises to do Udyog Aadhaar registration online as compared to the previous process of MSME/SSI registration. Aadhaar Udyog registration simplifies the MSME registration process in the following ways –

• One page simple registration form.
• Multiple UAM’s can be filed.
• Free of cost.
• No supporting document required as it is a self-declaration.
• The framework provides revival & rehabilitation of MSME’S.
• Easy online process.

Classification of MSME

MSME’s are classified into three enterprises - Micro enterprises, Small enterprises and Medium enterprises. It is your total investment amount which differentiates your business between Micro, small and medium enterprises.

Micro Enterprises

In case you are a manufacturing enterprise and having an investment of less than Rs.25 Lakhs in Plant & Machinery or a service enterprise having an investment of less than Rs.10 Lakh, your enterprise will be considered as Micro enterprise. Micro enterprises are having small amount of capital and less than 10 individuals to work for the enterprise. These enterprises are basically formed to earn livelihood and to provide support to themselves & their families. For ex – Ice cream parlour or a small Restaurant in your neighbourhood.

Small Enterprises

In case you are a manufacturing enterprise and having investment between Rs.25 Lakh to Rs.5 crores in Plant & Machinery or a service enterprise having an investment between Rs.10 Lakhs to Rs.2 Crores, your enterprise will be considered as a small enterprise. A small enterprise has few labourers and does not attain higher sales. You will find small enterprises in each industry covering sole proprietorship, companies or organizations. Small entrepreneurs include hotels, dry cleaners, eating joints, law offices, building & structure firms etc. For ex – It may be a pastry shop having 10 individuals or assembling unit utilizing 50 employees. In small enterprises, some private companies require business permit for businesses like running bookkeeping business from home, halfway house, daycare, retirement homes etc.

Medium enterprises

In case you are a manufacturing enterprise having investment between Rs.5 Crores to Rs.10 crores in plant & Machinery or a service enterprise having investment between Rs.2 Crores to Rs.5 Crores, Your enterprise will be considered as medium enterprise. A medium enterprise comprises of less than 250 people working for a venture. As enterprise progresses by earning more income, need of more capital and workers also arises to fulfill the business requirements.

Procedure for MSME/Udyog Aadhaar Registration

Every company has its own procedure for MSME/Udyog Aadhaar registration but FinacBooks makes it very easy for their clients. Obtaining quick complete information, document preparation, verification and fast approval process is what we believe in. There is no need of your Physical presence as everything will be done online.

Step by Step MSME/SSI Registrations Process are as follows

• Step 1 : Complete the required information needed in MSME/SSI registration form. It includes your personal information as well as your business information.
• Step 2 : As per the details provided, we will start preparing your documents accordingly and it will take around 1-2 working days.
• Step 3 : In the third step, our experts will verify your documents properly and submit the same along with the application form to MSME registrar for approval and it will take around 2 working days.
• Step 4 : In the last and the fourth step, your application will be approved by the MSME registrar and the certificate will be issued to you. We will send you the certificate via e-mail & courier.

There are Two Types Udyog Aadhaar Registration Process

New Udyog Aadhaar Registration with Aadhaar

• Step 1 : You will enter your Aadhaar number.
• Step 2 : You have to enter your name. You need to write the name same as written on the Aadhaar card.
• Step 3 : Is to click on button “Validate and Generate OTP”.
• Step 4 : You will receive an OTP on your registered mobile number (registered with UIDAI). If your mobile phone number is not registered, then you need to follow the instructions displayed on the website.
• Step 5 : The applicant needs to choose the social category (General, scheduled cast, scheduled tribe, OBC etc). If you belong to SC, ST or OBC category, then you need to submit the proof of the same.
• Step 6 : The applicant needs to choose his or her gender.
• Step 7 : If the applicant is physically handicapped then he can select this option in the seventh step.
• Step 8 : If the applicant is physically handicapped the applicant needs to mention the name of his enterprise.
• Step 9 : The enterprise needs to select the organization type.
• Step 10 : In case of Limited Liability Partnership , private limited, Public Limited or Cooperative enterprise, you need to enter the PAN number in the tenth step.
• Step 11 : You have to click on the add plant button. The applicant can add various plant locations.
• Step 12 : The applicant needs to enter the complete address of the enterprise including e-mail, mobile Number, pin code, district and state in the twelve step.
• Step 13 : The applicant needs to mention the date of commencement of business.
• Step 14 : Fourteenth step asks for previous details of registration (if any). If the enterprise of the applicant is already issued a valid EM-I/II, under the MSMED act 2006 by the concerned general manager. He or she needs to enter that number in the required field.
• Step 15 : The applicant needs to mention his or her bank account number. The applicant also needs to provide the IFSC code of the bank.
• Step 16 : The applicant needs to enter the major Activity of the business such as manufacturing or services (whatever it is).
• Step 17 : The applicant can select various NIC codes to include all the activities performed by them.
• Step 18 : The applicant needs to enter number of employees in the eighteenth step.
• Step 19 : The applicant needs to mention the total investment made in plant or machinery or equipment in the nineteenth step.
• Step 20 : Applicant needs to enter the DIC location based on enterprise location.
• Step 21 : You have to generate the OTP and for that you have to click on the submit button.
• Step 22 : The applicant needs to enter the OTP and the final Captcha. Then, finally click on the submit button to complete the procedure.

New Udyog Aadhaar Registration without Aadhaar

• Step 1 : The applicant needs to enroll him or her for the Aadhaar by going to the Aadhaar enrollment center. Till the Aadhaar is issued to the individual, following documents given below are used to continue the procedure of registration -
• Step 2 : Copy of the Aadhaar enrollment slip or Copy of the Aadhaar slip for aadhaar enrolment

For the Aadhaar enrollment, a copy of the following documents are needed - Employee Photo identity card, PAN card, driving license, passport, Voter ID card or bank photo passbook. After following this procedure, you can easily continue your business with MSME/SSI certificate.

Eligibility for Udyog Aadhaar/ MSME Registration

The eligibility for Udyog Aadhaar/MSME registration depends upon the total investment made by the enterprise in plant & machinery under manufacturing sector or equipment under service sector. There is a limit specified in both manufacturing and service sector for micro, small and medium enterprises which are as follows -

Information Needed For MSME/ Udyog Aadhaar / SSI Registration

• Name of the Entrepreneur/Applicant – In order to obtain Udyog Aadhaar new registration, the first thing you need to do is enter your name as mentioned on Aadhaar card in MSME registration form.
• Aadhaar number – Enter your 12 digit Aadhaar card number issued by UIDAI.
• PAN card - Enter your PAN card number in the required field.
• Gender – Choose your gender – Male or Female
• Mobile number – Enter your registered mobile number in MSME registration form.
• E-mail ID – Enter your registered E-mail ID in the required field.
• Social category – Choose your social category among General/SC/ST/OBC.
• Physically handicapped – In case you are a physically handicapped person, you must choose the option of physically handicapped or disabled person in MSME registration form.
• Name of Enterprise – Enter the full name of your enterprise correctly. An applicant having more than one Enterprise can apply for multiple Udyog Aadhaar (One for each enterprise) using the same Aadhaar number. For ex – Enterprise 1 or Enterprise 2.
• Type of Organization – Enter the type of business or legal entity you are operating as a business (Sole proprietorship, Partnership firm, HUF, LLP, Public limited company, private limited company, Co-operatives, others)
• Date of commencement of business – Commencement date means the date on which you started your business operations.
• Plant location – Place where you are manufacturing something or a factory.
• Office Address – For better communication, kindly provide postal address of your business along with the contact number & E-mail Address.
• Bank Account number – Kindly provide your bank account number given on the Cheque book and passbook of the concerned bank.
• IFSC code – Kindly provide your IFSC code of the concerned bank (Given on the cheque book as well as passbook of the bank)
• Main business activity – Mention key area of your business activity such as manufacturing or service.
• NIC – The 2 digit code - You must enter your national industrial classification code mentioned in the National industrial classification handbook. A single applicant might select multiple NIC codes to include all of its activities.
• Number of employees – Details about number of employees employed by you in your enterprise
• Additional details about business – Kindly provide additional details related to your business (If applicable).
• Total investment made in Plant & Machinery – Kindly provide the total amount which you invested in your business in terms of Machinery & Equipment.
• Scanned Copy of Aadhaar card – Kindly provide a scanned copy of Aadhaar card. It should be clear enough and easy to read.

Current Account Opening

Current account opening is necessary for the business owners as there are lots of transactions they need to do on regular basis in order to run their business. It is a kind of deposit account that helps the business owners to do regular transactions continuously without any hassle. There are various benefits which businessmen can avail by making online current account –

• Customized features
• Unlimited transactions such as deposits & withdrawal transactions.
• Online banking services such as Internet & mobile banking.
• Overdraft Facility etc.

Now days, there are many banks which provide online current accounts for businessmen which are opened at zero balance in a quick time without any fees.

What is UAM (Udyog Aadhaar Memorandum)?

Udyog Aadhaar memorandum (UAM) is a simple registration form to prove MSME’s existence as well as mandatory details such as owner’s Aadhaar card number, Bank details and Personal details is provided at the time of filling form online. After filling & submitting the form, you will receive an acknowledgement on your registered E-mail ID containing the Udyog Aadhaar number which you can use as a reference to all your future communications in relation to Udyog Aadhaar registration. No supporting document is needed as it is a self-declaration form but it may be requested by the state or central authority as information proof in UAM registration form.

If any of the enterprise already filed for EMI-1 or EMI-2 or both or the current holder of small scale industry registration before introduction of MSME act 2006, there is no need to file Udyog Aadhaar memorandum (UAM). Enterprise can also file multiple UAM’s with the use of same Aadhaar number, if they desire to as there is no limitation on it.

Various Schemes for MSME in India

There are various MSME schemes launched by government of India to help MSME’s -

• Udyog Aadhaar Memorandum

  Aadhaar card is a mandatory requirement for all individuals who want to register under this scheme. After registering under this scheme, you can easily avail credit, loan facility as well as subsidies from the government. This process can be done both online & offline.

• Quality management standards & quality technology tools

  Registering under this scheme will help MSME’s to understand and maintain the specified quality standards with the help of new technology. In this scheme, seminars as well as activities are conducted to tell businesses about the introduction of new technology in the market.

• Zero defects Zero effect

  Enterprise involved in export of manufacturing goods must adhere to the standards specified so that the goods will not get rejected or sent back to India. In order to achieve this aim, zero defect zero effect scheme has been launched by the government of India. As per this scheme, if the goods are exported, it may get entitled for rebate & concession. This scheme also raises the level of quality in MSME sector.

• Incubation

  Incubation is related to innovation. Under this scheme, government provides help to the innovators by implementing their new ideas, design or products. As per this scheme, government finance 75% to 80% of the project cost and helped in promoting new ideas, products, designs etc.

• Grievance monitoring system

  This scheme has been launched by the government to address the complaints or grievances of the business owners. With the help of this scheme, you can easily view the status of your complaints and in case you are not satisfied with the outcome, you can reopen it too.

• Credit linked capital subsidy scheme

  This scheme has been launched by the government to provide new technology to replace their old & outdated innovative techniques. Micro, small & medium enterprises can avail this capital subsidy scheme by approaching banks directly. It also helps in upgrading business enterprises and provides better system to run your business.

• Women entrepreneurship

  This scheme is especially launched by the government for those women who wants to start business of their own and help them in expanding and managing their businesses. Under this scheme, government main aim is to help women in establishing their business by providing capital, training, counselling & delivery techniques so that they can easily establish themselves in the business without any difficulty.