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2019-11-04 16:08:57Small Business TipsEnglishUdyog Aadhaar Registration is a single page online registration of the MSME via a self declaration in Udyog Aadhaar Memorandum (UAM).https://quickbooks.intuit.com/in/resources/in_qrc/uploads/2019/11/What-is-Udyog-Aadhar-1.jpghttps://quickbooks.intuit.com/in/resources/small-business-tips/msme-registration-how-to-apply-for-udyog-aadhaar/MSME Registration: How To Apply For Udyog Aadhaar?

MSME Registration: How To Apply For Udyog Aadhaar?

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Prior to the implementation of the MSME Development Act 2006, MSME sector was defined as the Small Scale Industries (SSIs) sector. The constituent small and auxiliary units of the SSI sector were defined based on the periodic criteria for defining such units.

With the coming of the MSME Development Act, 2006, the scope of MSME sector was extended. In place of simply industries as under SSI, the concept of ‘enterprise’ was introduced to include both manufacturing and service sectors.

Following the implementation of the MSME Development Act, 2006, the registration process for the MSMEs involved filing of two forms. These included Entrepreneurs Memorandum I (EM I) and Entrepreneurs Memorandum II (EM II). Where EM I was for the proposed or upcoming entreprises and discretionary in nature, EM II was required to be filed by the existing entreprises. Further, EM II was required to be filed with District Industries Centre (DIC) in the concerned state or union territory immediately after the project kicks off.

In order to promote ease of doing business and simplify the process of MSME registration further, the Ministry of MSME introduced the Udyog Aadhaar registration.

What is Udyog Aadhaar Registration?

Udyog Aadhaar Registration is basically a single page online registration of the MSME. Under Udyog Aadhaar, the MSMEs can register via self declaration in Udyog Aadhaar Memorandum (UAM), with no additional documents to be submitted for the same. Further, the MSMEs are not required to pay any fees and can file more than one Udyog Aadhaar with the same Aadhaar number.

Steps Involved In Udyog Aadhaar Registration Online

1. Login to the Government Portal for MSME Registration

In order to promote ease of doing business, the Ministry of MSME rolled out an online portal. The first step towards registering as an MSME under Udyog Aadhaar is to link to the portal, the link to which is as follows https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx.

2. Entering Individual Aadhaar Number

The individual simply needs to enter the twelve digit Aadhaar Number issued to him or her in the requisite field provided on the website.

As mentioned above, in the case of the Partnership Firm, the managing partner applying for the MSME registration needs to provide his Aadhaar Number.

Similarly, in the case of a company, the authorized signatory applying for MSME registration on behalf of the company shall provide his Aadhaar details.

3. Name of the Entrepreneur

The applicant whose Aadhaar Number is provided in the field above shall specify his or her name in this section.

He or she must be careful while providing the name in this section as it should perfectly match with the name provided on the Aadhaar Card by the UIDAI.

For instance, if a person named Rajdeep Kumar Sardesai has his name as Rajdeep K Sardesai on the Aadhaar Card, same should be mentioned in this section.

However, if the name so mentioned does not match with the Aadhaar Card, he or she will not be able to fill the Form further.

4. Validating Aadhaar

After providing the above details, there is a button below that asks you to “validate and generate OTP”. By clicking on this button, the applicant would be able to validate his or her Aadhaar and would be able to fill the Form further.

It must be noted that an OTP will be generated and sent to the applicant’s mobile number registered with the UIDAI. However, if the applicant’s mobile number is not registered with the UIDAI, he or she needs to follow the instructions in the Pop-Up that so appears.

Once the OTP is generated, the applicant needs to fill the OTP and complete the Form further.

5. Filling Details in the Udyog Aadhaar Form

Following are the details that need to be filled by the applicant in the Udyog Aadhaar Form:

  • Aadhaar Number

As mentioned above.

  • Name of the owner

As mentioned above.

  • Social Category

Here, the applicant needs to choose the social category he or she belongs to. These include:

  • Scheduled Caste
  • Scheduled Tribe
  • Other Backward Classes (OBC)

Further, the concerned authority may ask for the proof of the applicant’s social category whenever required.

  • Gender

Here, the applicant needs to select his or her gender.

  • Physically Handicapped

Here, the applicant needs to choose his or her physically handicapped status.

  • Name of the Enterprise

In this section, the applicant needs to provide the name of the enterprise by which he or she undertakes the business activity and is known to his or her customers.

Further, it must be noted that an applicant can have more than one enterprise. Each of these enterprises can either be registered for a separate Udyog Aadhaar and using the same Aadhaar number.

  • Type of Organization

The applicant now needs to select the type of organization under which his enterprise functions. These could include:

If some other person is applying for the MSME registration on behalf of the organization, he or she must ensure that they are authorized to do so for the entity for which they are seeking registration. Also, only one Udyog Aadhaar Number is issued for each enterprise.

  • PAN Number

The applicant needs to provide the PAN number. This is necessary in case of an LLP, Cooperative, Pvt Ltd and Public Ltd Company. Further, this is optional in all the other types of organizations.

  • Location of Plant

The applicant needs to provide the place of location of the plant in case of multiple plants at various locations. He can specify all of them by clicking on the add plant button.

  • Official Address

Under this, the applicant needs to provide the full postal address of his business entity. The details would include:

  • State
  • District
  • PIN Code
  • Mobile Number
  • Email
  • Date of Commencement

The applicant in this section needs to specify the date on which the legal entity started its operations.

  • Previous Registration Details (If Any)

There can be a case where the business entity for which the applicant seeks Udyog Aadhaar Registration was already issued:

  • valid EM-I/II by the appropriate GM (DIC) according to the MSMED Act, 2006 OR
  • SSI registration that existed earlier to the MSMED Act, 2006

Such a number also needs to be mentioned by the applicant.

  • Bank Details

Here, the applicant needs to provide the following details related to his or her bank account used for undertaking the business activities. These include:

  • Bank Account Number
  • IFSC Code
  • Major Activity

The applicant needs to select the major activity in which its enterprise is engaged into.

Say the enterprise is involved both in manufacturing and service activities. In this case, the applicant needs to see the major activity in the business is involved.

If the large portion of the business is engaged in manufacturing, the applicant needs to choose manufacturing.

Similarly, if a large part of the business is engaged in services, the applicant needs to choose service as a major activity.

  • National Industry Classification Code (NIC Code)

Under this, the applicant needs to specify the NIC Codes in order to capture all the activities that the business entity is engaged into. The applicant can add more than one NIC Code by simply selecting “Add More” button.

  • Persons Employed

Here, the applicant needs to specify the total number of people who work as employees with the business entity and are paid salaries or wages by the business entity.

  • Investment in Plant, Machinery and Equipment

When the applicant calculates the total amount of investment, he needs to consider the purchase value of items which is the original investment.

Further, he needs to exclude cost of pollution control, R&D, industrial safety devices and other such items as mentioned via a notification by the RBI.

  • Details Regarding District Industries Centre (DIC)

Based on the location of the business entity, the applicant is required to fill the location of DIC.

6. Submission of the Udyog Aadhaar Form

The applicant simply needs to click on the submit button. This will lead to the generation of OTP that will be sent to the mobile number linked with Aadhaar. Enter the received OTP. The, enter the Captcha Code and click the final submit button.

Steps Involved In Udyog Aadhaar Registration Offline

  1. The applicant or the authorized signatory not having Aadhaar needs to apply for the same.
  2. Till the time the Aadhaar becomes available to the applicant, the UAN registration shall be filed by the appropriate DIC or MSME-DI on behalf of such a business entity.
  3. The applicant needs to submit the following documents:
    1. In case the applicant has enrolled for Aadhaar, his or her Aadhaar enrollment ID slip.
    2. Copy of his or her request made for Aadhaar enrollment
    3. Any of the following documents:
      1. Voter ID Card
      2. Driving License
      3. PAN Card
      4. Passport
      5. Bank Photo Passbook
      6. Employee Photo Identity Card issued by the Government
  4. The applicant needs to fill the Form physically.
  5. Once the Form is filled, it needs to be submitted to the DIC or MSME-DI.

Once, the applicant submits the Form, he or she will receive the acknowledgement for successful submission of the Form.

Further, the applicant will receive Udyog Aadhaar Number on a Certificate which will be sent to him or her online.

So, to understand the registration procedure for an MSME in a much simpler way, here is an infographic on How To Apply For Udyog Aadhaar?

MSME REGISTRATION
Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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