What is Udyog Aadhaar? Should I have it?
Udyog Aadhaar is a service that has been launched by the Ministry of Micro, Small and Medium Enterprises (MSME) of the Government of India. Udyog Aadhaar is a 12 digit registration number that is issued by the governing body to the already existing or newly established micro/small and medium enterprisers of India.
One has to apply for it on behalf of the enterprise in order to get the Udyog Aadhaar. Udyog Aadhaar was put into effect on the 18th September 2015 to make registration process for small/micro/medium scale businesses easy for owners. The launch of the UAM / Udyog Aadhaar Memorandum is surely made the registration process of the MSME which otherwise included a lot of paperwork.
|Udyog Aadhaar also known as||UAM (Udyog Aadhaar Memorandum)|
|Udyog Aadhaar Introduced on||September 2015|
|Udyog Aadhaar Introduced by||MSME Department|
|MSME||Ministry of Micro, Small and Medium Enterprises|
The MSME Act was passed in the year 2006. With an objective to regulate and promote the micro, small and medium scale enterprises in India. The main function of MSME is to provide financial and technically support to the upcoming and already existing small and medium scale industries in the country. It motive is to promote more and more enterprises in the country and seek for their growth and development. All the small, micro, and medium scale enterprises have to be registered with the MSME in order to get all the benefits that is provided by the government.
Registration process before the launch of Udyog Aadhaar
The registration procedure under the MSME was difficult and time consuming. The applicants required to fill up two forms- Entrepreneur Memorandum –I (EM-I) and Entrepreneur Memorandum –II (EM-II) forms. These forms in total consisted of 11 pages and then the applicant had to attach a long list of self-attested documents along with the form.
It was noted by the Kamath Committee that the rules and regulation of registering to the MSME varied from district to district in the country. Now this comes as a problems and also delays the process of registration. So make the process of registration under the MSME unified the Udyog Aadhaar has been launched. With the launch of the online registration the entire process has been made easy and the Udyog Aadhaar number could be used for various proposes and transactions.
Objective of Udyog Aadhaar
The main objective of the Udyog Aadhaar is to promote the concept of easily doing business so that more and more small scale industries can come up and flourish in the market. MSME wants to get rid of the complicated registration process and bring about a system that allow the enterprisers to register to the MSME easily. The Udyog Aadhaar is applicable all over India.
Beneficial features of Udyog Aadhaar
Some of the important features of Udyog Aadhaar that acts beneficial are-
- Udyog Aadhaar allows online registration option that makes it time saving and also convenient. The process does away with the concept of involving a middle man in the registration process.
- The details that are required for applying for the Udyog Aadhaar are very basic and so it is less complicated than the previous procedure. The form is a one page form instead in place of the previous 11 page form.
- There is no fee that one has to pay for applying for the Udyog Aadhaar. One just needs to visit the website and then fill the form an upload it. The registration number and other details will be then sent to your e-mail id that you have provided in the form.
- One also has the option of filing more than Udyog Aadhaar number with a single Aadhaar number. Once you receive the Udyog Aadhaar number you will be able to use this unique number for receiving all the benefits and services that is being given by the government and other departments.
How to register for Udyog Aadhaar
Udyog Aadhaar registration process is quite simple and makes the registration process very easy and time saving. Online registration is allowed for applying for the Udyog Aadhaar. One just needs to visit the official website of MSME to get the link that leads to the application form. It is a one page form that has to be filled with certain specific details. The information that needs to be filled in the application form are-
- Aadhaar card number of the applicant (owner of the small scale, micro or medium scale business)
- Name and social category of the applicant
- Name of the enterprise and type of enterprise, the field of business and the number of people employed in the business
- Postal address of the business
- The starting date of business, previous registration details and Company’s bank details
- Investment details
There is no particular document required for applying for the Udyog Aadhaar. With all these features Udyog Aadhaar surely make the registration process of MSME much easier and time saving. This means that the enterprisers now need not wait for a long time before they get registered to the MSME and start getting the benefits that is given by the government. Udyog Aadhaar makes the registration process a speedy and a convenient one for the enterprisers. So for all the micro, small and medium scale enterprisers it is best to have an Udyog Adhaar number.