Is Udyog Aadhar Compulsory for MSME? Importance of Udyog Aadhar Registration

Udyog registration

What is Udyog Aadhaar Registration?

Udyog  Aadhaar is a 12 digit unique number which is allotted by the MSME for the small and medium enterprises to register themselves as MSME holders. A sole proprietor company owner, unlike other business entities, does not have an official approval for his business. Udyog Aadhaar is strongly recommended for sole proprietors who do not have official government approval, as it allows a sole proprietor to obtain a unique identification and official registration with the Government of India, which verifies the existence of his company. Udyog aadhaar is also known as Udyam/MSME registration.

Is Udyog Aadhar Compulsory for MSME?

It is not mandatory to file an MSME under Udyog Aadhaar. If you have an Aadhaar number, then you can complete the Udyog Aadhaar Registration through online.

Importance of Udyog Aadhar Registration:

  • The maximum loan volume has been raised from Rs. 25 lakh to Rs. 50 lakh for the great outcome.
  • Registration with Udyam involves the sharing of government contracts.
  • Udyog Aadhar is a government registry that comes with a certificate of acknowledgement and a unique number for certifying micro, small, and medium businesses.
  • Businesses or businesses who are MSME-registered will get a 1% discount on their OverDraft, according to a scheme that varies by bank.
  • Businesses who are registered under the MSME Act are eligible for a 50% subsidy on patent registration. This is achieved by submitting an application to the relevant ministry. 

Can we edit or update Udyog Aadhaar Number?

If you need to update/ change the details which are given in the existing Udyog Aadhaar Number. Kindly follow the given steps

  1. Click the link:  https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
  2. Enter your MSME number.
  3. Enter the code which is sent to your Aadhaar linked mobile number.
  4. Enter the ONE TIME PASSWORD received on your Aadhaar linked mobile number.
  5. Update/Change the details you want to change and submit.

Who is eligible for Udyog Aadhaar registration?

Only manufacturers, producers, and service providers are required to use the MSME tag and register under it. Any producer or service provider who satisfies the eligibility requirements can register under the MSME.

Micro business

With a capital of up to Rs 1 crore and a turnover of up to Rs 5 crore are eligible. 

Small business

With a turnover of up to Rs 50 crore and an investment of up to Rs 10 crore 

Medium-sized business

 Investments of up to Rs 50 crore and a turnover of up to Rs 250 crore are eligible.

Process involved registration for Udyog Aadhaar?

Kindly follow the given steps to apply MSME registration

Step 1 

Login to the https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm

Step 2 

Kindly enter the 12 digit aadhaar number and complete the verification process.

Step 3 

Mention the owner name as per the aadhaar card, if not you cannot proceed with the application form.

Step 4 

Provide the applicants caste the concerned authority can require proof of the applicant’s social category,Where necessary. And also Select the Gender. The Physically Handicapped status must be chosen by the entrepreneur candidate.

Step 5 

The applicant must now choose the kind of company in which his business would function. This may involve the following:

  1. Sole Proprietorship
  2. Firm of Partnership
  3. Limited Liability Partnership
  4. Cooperative Society

The PAN number must be given by the applicant. In the case of an LLP, Cooperative, Pvt Ltd, or Public Ltd Company, this is needed. Furthermore, with all other forms of organisations, this is optional.

Step 6

The applicant must have the business entity’s full address, including the District, State, Pin code, phone number, and email address.

Step 7 

The day the business started should be entered in the appropriate fields.

Udyog aadhar registration online

Step 8

The applicant must give the following information about his or her bank account, which is used for business purposes. There are some of them:

  1. Bank Account Number
  2. IFSC Code

Step 9

The applicant must choose the main activity in which its business is involved.

Believe the company involved in both manufacturing and service operations. In this situation, the applicant must be able to explain that the business’s main activity is involved.

Whether manufacturing provides for a significant portion of the company’s revenue, the applicant must choose manufacturing.

Similarly, if services account for a significant portion of the company, the applicant must choose service as a major activity.

Step 10

Under the Ministry of Statistics and Program Implementation, the Central Statistical Organisation (CSO) publishes the database of NIC codes.

Furthermore, the applicant has the option of selecting various Manufacturing and Service sector codes.

Step 11

The applicant must mention the total number of persons who work for the business entity as employees who are paying salary or wages by the business entity.

Step 12

When calculating the overall amount of investment, the applicant must take into account the selling price of the goods, which is the initial investment.

Step 13

DIC stands for District Industries Centre in its full form. However, the applicant must fill out the DIC location depending on the location of the business company.

Applicant has to do now is press the submit button. This will result in the generation of an OTP, which will be sent to the Aadhaar-linked mobile number. Enter the OTP that was sent to you. After that, type the Captcha Code and press the send button.

For assistance with Udyog Aadhar registration, get in touch with us

What are the features of Udyog Aadhar?

  • The registration process is simple and clear.
  • It is possible to file a self-declaration using MSME.
  • There is no need for paperwork.
  • There is no charge for filing.
  • With the same Aadhaar number, several Udyog Aadhaar registration may be submitted.

Documents and details required for udyog aadhaar/MSME registration?

  • Aadhaar number of applicant
  • Applicants Name as per aadhaar card
  • Name of business.
  • Type of business entity (Proprietorship, Partnership Firm, Private Limited Company, Limited Liability Partnership, Others)
  • Business address and account details.
  • National Industrial Classification Code (NIC code).
  • No. of employees in the organization.
  • Email ID and mobile number of the owner.
  • Pan number of the applicant.
  • Total amount of capital invested in the company.
  • Submitting an application to the relevant ministry. 

What is the validity of the Udyog Aadhaar/ Udayam from the date of registration?

Life time validity for Udyog Aadhaar from the date of registration.

How do I cancel Udyog Aadhar registration?

To cancel an Udyog Aadhaar registration, submit an application or a formal letter to the Udyog Aadhaar Registration Center, describing the company or business activity and stating which registrations need to be cancelled. In the application, briefly mention the reason for the termination or cancellation of Udyog Aadhaar Registration.

What is MSME Form 1 (MCA)?

The MSME Form-1 is to be filed with the Registrar of Companies (ROC) for the payment of a half-yearly return in respect of outstanding payments to Micro or Small Enterprises.

Companies who purchase products or services from micro or small businesses and pay more than 45 days from the date of approval or acceptance of the goods or services are expected to file a half-yearly return.

How can we help you?

Taxxinn is a one step solution for your business needs. We can help you fulfil all the formalities regarding Udyog Aadhar registration and amendment of Udyog Aadhar. We have the best experts in place who will help you get your requirements done in a very short span of time.

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