The Ministry of Micro, Small and Medium Enterprises, Government of India has started a unique document for micro, small and medium sized enterprises in India. It is a 12-digit Unique Identification Number (UIN) also called Udyog Aadhaar or Aadhaar for Businesses, MSME Registration, etc. Moreover, Udyog Aadhaar Certificate is also provided by the Government to certify Micro, Small and Medium Enterprises.
Get Free Credit Report with monthly updates. Check Now
What is Udyog Aadhaar?
It is a twelve digit Unique Identification Number issued by the Ministry of Micro, Small and Medium Enterprises, Government of India for small and medium sized enterprises in India. The business owners are also provided with Udyog Aadhar certificate. It is also known as MSME registration.
Why was Udyog Aadhaar needed?
Udyog Aadhaar was issued in September 2015 in India as there was a dire need to make the registration processes for the micro, small and medium sized enterprises in India. Before this, the registration process was tedious and paper-heavy and the owner was required to register for both small industry and MSME, but with the introduction of Udhyog Aadhaar the procedure got simpler and easier for the business owners.
Benefits of Udyog Aadhaar
Following are the benefits of Udhyog Aadhaar:
- Helps in providing bank loan without collateral or mortgage
- Helps in tax exemption of direct tax
- You can avail interest at lower rate
- In case of patent registration 50% grant is available
- Reimbursement of ISO certification
- Makes the process of availing licences, approvals and other registrations easy
- Concession in electricity bill and more
- Eligibility for government subsidies
- Applying for current bank accounts for businesses is easier and faster
- Barcode registration subsidy
- Manufacturing and production sector policies
- Offers Octroi benefits under the package Scheme of Incentives, 1993
- Provides protection against any delay in payments
- Subsidy on NSIC performance & Credit Ratings for those having MSME Registration
Eligibility for Udyog Aadhaar
The eligibility criteria for Udyog Aadhaar registration is not for all businesses but for the entities that are categorised as Micro, Small or Medium Enterprise. Take a look at the table below for eligibility criteria in investment in plant and machinery as per the ministry:
Category | Manufacturing Sector (investment in plant & machinery) |
Service Sector (investment in equipment) |
Micro Enterprise | Up to Rs. 25 lakh | Up to Rs. 10 lakh |
Small Enterprise | Up to Rs.5 crore | Up to Rs.2 crore |
Medium Enterprise | Up to Rs.10 crore | Up to Rs.5 crore |
A Good Credit Score ensures you manage Your Finances Well Check Now
Documents required for Udyog Aadhaar Registration
For registration of Udhyog Aadhaar Online, no documents are required, but you have to furnish following details:
1. Aadhaar Number
2. PAN Number – It is mandatory for the following to provide PAN Number for Udyog Aadhaar Registration:
- Co-operative
- Private Limited
- Public Limited
- Limited Liability Partnership
- For all the other organizations it is optional to provide PAN Number
3. Bank Details- You need to provide your Bank details, the IFSC Code of the participating bank branch where your account exists
4. Date of Commencement
5. Key Details of service or manufacturing
6. Type of Organisation
7. Location of service/ manufacturing plant
8. Official Address
9. Number of people of employed
10. Mobile Number
How to Register for Udyog Aadhaar?
Udhyog Aadhar Registration can be done by following the steps mentioned below:
Step 1: Visit the official website of Udhyog Aadhaar
Step 2: Enter your Aadhaar Number and Name as per your Aadhaar Card
Step 3: Click on “Validate and Generate OTP”
Step 4: Enter the OTP sent to your registered mobile number
Step 5: You will be redirected to a new page, where you have to enter the remaining details
Step 6: Enter the details such as your name, social category, Gender, etc.
Step 7: Enter if you are physically handicapped or not
Step 8: Enter the name of your enterprise
Step 9: Enter the type of organization as show in the below picture
Step 10: Enter your PAN Number
Step 11: Enter the location of your plant and the official address
Step 12: Enter the date of commencement of the plant
Step 13: Enter the details of previous registration (if any)
Step 14: Enter your bank details along with IFSC Code of bank’s branch
Step 15: Enter your registered mobile number
Step 16: Enter the number of persons who are employed
Step 17: Enter the other required details such as major activity, National Industrial Classification (NIC) code, investment amount, DIC, etc.
Step 18: Click on “Declaration” button
Step 19: Click on “Submit” button
Step 20: Once the submission is done, you will receive an OTP on your registration mobile number
Step 21: After verifying the OTP, you must enter the captcha code
Step 22: You will receive an acknowledgement/reference number on your registered email address
Note: This acknowledgement/reference number can be used for future references.
Fees and Charges Involved in Udyog Aadhaar
There are no Udhyog Aadhar Fees and charges for Udhyog Aadhaar online registration.
Also Check: Udyog Aadhar Verification
FAQs on Udyog Aadhaar
Q. I am an entrepreneur and have a valid Aadhaar Number. Can I apply for Aadhar Udhyog Registration?
Ans. Yes, any entrepreneur having an Aadhaar Number can easily apply for Aadhar Udhyog Registration online.
Q. Where Can I apply for MSME Udhyog Aadhar Registration?
Ans. You can visit the official website of Ministry of Micro, Small & Medium Enterprises for MSME Udhyog Aadhar Registration.
Q. What is the full form of MSME?
Ans. The full form of MSME is Micro, Small and Medium Enterprises.
Q. When was MSME Udhyog Aadhar launched?
Ans. MSME Udhyog Aadhar was launched in September 2015 under (MSMED Act, 2006) in order to promote the micro, small and medium businesses.
Q. Is Aadhar Udhyog Registration free of cost?
Ans. Yes, Aadhar Udhyog Registration is free of cost.
Q. Can I also get the physical copy of Udyog Aadhar Certificate?
Ans. No, the ministry does not provide the physical copy of Udyog Aadhar Certificate.
Q. Is it compulsory to have an Aadhaar number for Aadhar Udhyog Registration ?
Ans. No, it is not compulsory to have an Aadhaar number for Aadhar Udhyog Registration. In some exceptional cases, you can apply for Udhyog Aadhar Memorandum in an offline mode with the help of District Industries Centre (DIC). However, it is advisable to have an Aadhaar number in all cases.
Q. What is the expiry of my Udyog Aadhar Certificate?
Ans. Udyog Aadhar Certificate is valid for lifetime and has no expiry date.
Q. How can I select the NIC Code of the Activity performed by the enterprise?
Ans. You can select the NIC code only after the Aadhaar Number validation is done and the major activity i.e. either manufacturing or service sector is selected. There’s a 3-stage drop down list available for simplified selection of NIC Code.