The Udyog Aadhaar is a registration process having a twelve-digit registration number which came into effect on 18th September 2015 to encourage online filing of entrepreneur’s memorandum (known as the MSME registration) for micro, small and medium enterprises. It will thus, simplify the registration process with one page registration form.
MSME will hence, certify its existence, its business activity, ownership details, and employment details through this registration form.
MSME enterprises are considered to be the foundation of any economy and are an engine for potential economic growth, ensuring equitable development for all. Therefore, to encourage and promote MSMEs, through various subsidies, schemes and incentives the Government plans to promote MSMEs through the MSMED Act.
To avail a host of benefits from the Central or State Government and the Banking Sector as well, the MSME Registration is mandatory.
MSME in the manufacturing and service sector both; can obtain MSME Registration under the MSMED Act. The MSME registration is favorable as it provides a range of benefits like eligibility for lower interest rates,
Excise exemption scheme, subsidies for power tariff and capital investments; etc.
Microenterprises are the smallest manufacturing and service enterprises not having an investment of more than Rs. 25 lakh and Rs. 10 lakh respectively in plant and machinery.
Small manufacturing enterprises may invest between Rs. 25 lakh to Rs. 5 crores, while small service enterprises may invest between Rs. 10 lakh to Rs. 2 crores in plant and machinery.
Medium manufacturing enterprises may invest between Rs. 5 crore to Rs. 10 crore, while small service enterprises may invest Rs. 2 crore and Rs. 5 crore in plant and machinery.
SALIENT FEATURES OF UDYOG AADHAAR
- Online Registration.
- It can be filed by self-declaration through the details of the enterprise.
- One can file more than one Udyog Aadhaar with same Aadhaar Number.
- No Fees for filing.
- Once filled and uploaded, the registration number will be thus, received.
BENEFITS OF UDYOG AADHAAR REGISTRATION
- After registration with MSME, the micro, small or the medium enterprise will be eligible for the government related scheme benefits such as easy loan, low interest interests, without guarantee loan; etc.
- The MSME registered enterprises are offered financial support from the Government to participate in foreign expos.
- The enterprise is also entitled to receive Government subsidies.
- PAN cards, identity and address proofs of the proprietor/partners/directors needs to be submitted. Private limited companies must submit the MOA and AOA, Form 18, Form 32 and the Incorporation Certificate, while Partnership firms must submit the Partnership Agreement.
- The rental agreement for the business address, if rented, with the electricity bill.
- File the application with the relevant state office. Few additional documents may be needed for submission at this stage, as the process differs from state to state. Certain states require MSMEs to produce sale bills of machinery and municipal clearance.
MSMEs will be thus, issued a provisional certificate (if the unit has not started production) which is valid for five years. A permanent certificate will then be issued after the plant & machinery is operational.