udyog aadhaar msme registration

Udyog Aadhaar MSME Free Registration – Complete Guide

Do you want to know about Udyog Aadhaar registration? If yes, you have landed at the right place. Find here in this article, every detail of the Udyog Aadhar MSME free online registration process including the benefits, eligibility, and document requirements.

What is Udyog Aadhaar?

Udyog Aadhar, also known as MSME Aadhar, is a unique 12-digit identification number provided by the Ministry of Micro, Small, and Medium Enterprises (MSME) to eligible businesses. This registration is an online process that simplifies business registration for small and medium enterprises.

Benefits of Udyog Aadhar/Udyam Registration

Udyog Aadhar registration offers several advantages to small and medium-sized enterprises:

  • Access to Government Schemes: Registered businesses become eligible for various government schemes and subsidies aimed at promoting MSMEs.
  • Priority Lending: Some banks and financial institutions offer priority lending and lower interest rates to Udyog Aadhar-registered enterprises. Increased chances of receiving government loans and subsidies.
  • Easy Credit Availability: Registered businesses can access credit facilities more easily, as banks consider this registration during loan approval.
  • Reduced Fee for Trademark and Patent Registration: The government provides a 50% fee reduction for trademark and patent registration to registered MSMEs.
  • Preference in Government Tenders: Many government tenders have specific quotas for MSMEs, giving them a competitive edge in securing contracts.

Eligibility Criteria for Udyog Aadhar Registration

To register for Udyog Aadhar and avail the benefits offered to micro, small, and medium enterprises (MSMEs), you must meet certain eligibility criteria. Here are the key eligibility requirements:

Business Classification

Your enterprise should fall under the category of micro, small, or medium enterprises (MSMEs) as per the government’s classification. The classification is based on investment in plant and machinery or equipment, as well as annual turnover. As of July 1, 2020, the criteria are as follows:

    • Micro Enterprise: An enterprise with an investment in plant and machinery or equipment up to Rs. 1 crore and an annual turnover of up to Rs. 5 crore.
    • Small Enterprise: An enterprise with an investment in plant and machinery or equipment up to Rs. 10 crore and an annual turnover of up to Rs. 50 crore.
    • Medium Enterprise: An enterprise with an investment in plant and machinery or equipment up to Rs. 50 crore and an annual turnover of up to Rs. 250 crore.

b) Type of Business Entity

Udyog Aadhar registration is available to various types of business entities, including sole proprietorships, partnerships, private limited companies, and more. However, the business should be involved in manufacturing or service activities.

c) Indian Enterprise

The enterprise seeking Udyog Aadhar registration must be a legal entity operating within India.

d) No Default on Government Loans

If the enterprise or its promoters have defaulted on any government loans or financial assistance, it may not be eligible for Udyog Aadhar registration.

e) Valid Aadhar Number

The Aadhar number of the business owner or an authorized signatory should be valid and linked to the individual’s mobile number.

f) No Duplicate Registration

An enterprise should not have previously registered for Udyog Aadhar under the same Aadhar number. Duplicate registrations are not allowed.

g) Not a Subsidiary of Another Enterprise

Your business should not be a subsidiary of another enterprise. Each enterprise must register separately.

h) Compliance with Laws

Ensure that your enterprise is compliant with all relevant laws and regulations, including tax and environmental regulations.

Documents Required For Udyog Aadhaar MSME Registration

Below are listed some of the essential documents that need to be furnished:

  • Aadhaar Number: 12 digits Aadhaar number issued to the applicant.
  • Name of Owner: The applicant’s name is mentioned on the Aadhaar Card issued by UIDAI.
  • Social Category: General / Scheduled Caste / Scheduled Tribe / Other Backward Castes (with proof).
  • Name of Enterprise: Name of the legal entity to conduct business. One applicant can have more than one enterprise doing business and each one can be registered for a separate Udyog Aadhaar with the same Aadhaar Number.
  • Type of Organization: Type of Business Entity or Legal Entity. (Proprietorship, Partnership Firm, Hindu Undivided Family, Private Limited Company, Co-Operative, Public Limited Company, Self Help Group, LLP, Others)
  • Postal Address: Address of the business including mobile and email address.
  • Date of Commencement: The date on which businesses were started.
  • Previous Registration Details: Details of previous MSME registration, if applicable should be entered here.
  • Bank Details: Details of the bank account of the company including IFSC Code and Bank Account number.
  • Major Activity: Major area of activity of the business – manufacturing or service.
  • NIC Code: The appropriate NIC Code should be entered from the National Industrial Classification (NIC) handbook. To download the NIC Code Handbook
  • The person employed: The total number of people employed in the business.
  • Investment in Plant & Machinery / Equipment: Amount of money invested in terms of machinery and equipment by the business.
  • DIC: Details of the District Industry Center nearest to the business, if required.

Related: How to Get GST Registration Number Online

Here are 17 Steps to Register Udyog Aadhaar MSME/ Udyam Online

After opening the official site of Udyog Aadhar, you will need to provide the below-mentioned information:

1. Aadhaar Card Number

First of all, you have to fill up the 12-digit Aadhaar number. For online registration, you can’t continue the Udyog Aadhaar registration application without an Aadhaar number.

2. Name of Entrepreneur

Secondly, you have to provide the name of the owner. Here, you have to write the name as per your Aadhaar card. Your name for Udyog Aadhaar registration must match the name and style of your Aadhaar Card. Otherwise, you will face rejection.

3. Social Category

Now you have to write your specific social category. Mention, whether you belong to a General, SC, ST or OBC category. Other than the General category, you have to provide a specific document as proof of your status.

4. Gender

Then you have to mention your gender. Provide whether you are a male or female candidate.

5. Name of Enterprise

You have to provide the name of your business which is a legal entity to conduct business. You may have more than one enterprise doing business. Each one can be registered for a separate Udyog Aadhaar with the same Aadhaar Number as Enterprise 1 and Enterprise 2 etc.

6. Type of Organization

You have to mention the appropriate type of organization. Additionally, you have to ensure that you are the authorized person to fill out the online form.

7. PAN Number

In the case of Co-Operative, Private Limited, Public Limited, and Limited Liability Partnership, you have to enter the PAN number. However, it is optional for the remaining types of organizations.

8. Business Address

You have to provide the complete postal address of the Enterprise including State, District, Pin Code, Mobile No, and Email. Additionally, you have to mention the plant address also. However, you can add multiple plant locations in one registration by clicking the Add Plant button.

9. Date of Commencement

The date of commencement is the specific date when the business entity started the operation. Here, you have to provide that particular date of commencing the business.

10. Previous Registration Details

If you have already an SSI registration, then you have to provide the number here. Just mention the number in the appropriate place.

11. Bank Details

Here, you must provide the bank account number that you use for the business transaction. Additionally, you must provide the IFS Code of the bank’s branch where the account exists.

12. Major Activity

You have to choose a major activity from two alternatives. Mention whether you operate a ‘Manufacturing’ or ‘Service’ based business. However, if you are into both manufacturing and service, then choose an option that you do on a large scale. You can’t mention both.

13. NIC Code

NIC stands for National Industry Classification. You can mention more than one classification code. To do so, you can click the ‘Add More’ button.

14. Number of Employees

Here, you have to provide the total number of employees in your enterprise. Only include those persons who are directly underpaid salary/wages.

15. Investment in Plant & Machinery

You have to mention the total investment amount in plant, machinery, and equipment. However, only mention the original investment which means the purchase value. Provide the value excluding the cost of pollution control, research and development, industrial safety devices, and other items.

16. DIC Location

According to the location of your enterprise provide the DIC location of that particular area. However, if there is more than one DIC, then you have to mention it in the respective column. If there is only one DIC in the district system will automatically register you in the same DIC.

17. Press the Submit Button

Finally, you have to click on the Submit button to generate OTP. You will get a Time Password at your registered email ID. Additionally, you have to enter the OTP received on mobile for the second time. Finally, enter the captcha and hit the submit button.

Frequently Asked Questions (FAQs):

Who is eligible for Udyog Aadhar registration?

Micro, small, and medium-sized enterprises engaged in manufacturing or service activities are eligible for Udyog Aadhar registration.

Is there a registration fee for Udyog Aadhar?

No, the Udyog Aadhar registration process is free of charge.

Can I update or edit my Udyog Aadhar certificate?

Yes, you can update or edit your Udyog Aadhar certificate online. However, some changes may require additional documentation.

What is the validity of Udyog Aadhar registration?

Udyog Aadhar registration does not have an expiry date. Once registered, your enterprise remains eligible for benefits unless you voluntarily cancel the registration.

Can an individual apply for Udyog Aadhar registration?

No, Udyog Aadhar registration is meant for business entities, not individuals.

Can a manufacturing and service enterprise apply for Udyog Aadhar with the same Aadhar number?

Yes, a single Aadhar number can be used for registering both manufacturing and service enterprises.

How long does it take to receive the Udyog Aadhar certificate?

Typically, the Udyog Aadhar certificate is generated instantly after a successful registration.

Is Udyog Aadhar different from a GST registration?

Yes, Udyog Aadhar and GST registration are separate processes. Udyog Aadhar is specific to MSMEs, while GST registration is related to the Goods and Services Tax.