Udyog Aadhar Registration: Check Benefits, Registration Process, & Required Documents

In today's competitive business landscape, it is essential for small and medium-sized enterprises (SMEs) to avail themselves of government initiatives that can streamline processes, offer benefits, and provide recognition. One such initiative by the Government of India is the Udyog Aadhaar registration, also known as Udyam registration, aimed at facilitating the growth and development of micro, small, and medium enterprises (MSMEs) across the country.

What is Udyog Aadhaar

Udyog Aadhaar is a twelve-digit unique identification number provided by the Ministry of micro, small and medium enterprises (MSME) for small and medium-sized enterprises. It replaces the earlier system of registration known as the small scale industry (SSI) registration. This initiative aims to simplify the registration process and provide various benefits and incentives to registered enterprises.

Udyog Aadhar registration

Udyog Aadhar registration is a simplified process introduced by the Indian government for micro, small, and medium enterprises (MSMEs). It provides a unique identification number to such enterprises, making it easier for them to access various benefits and schemes. The registration process involves minimal documentation and can be completed online. Udyog Aadhar registration offers advantages like easier access to credit, subsidies, and government support. It empowers MSMEs by facilitating their participation in government procurement processes and enhancing their visibility. This initiative aims to promote the growth of small businesses and contributes to the overall economic development of the country.

Udhyam registration

The Ministry of MSME Government of India, in the notification S.O.2119(E) dated 26.06.2020, with effect from 1st July 2020, introduced the Udyam Registration in lieu of UAM. The Udyam Registration is based on the composite criteria of investment and turnover for classification of Micro, Small and Medium Enterprise for new enterprises as well as existing enterprises.

1. Entrepreneurs wishing to establish a micro, small, or medium enterprise can easily apply for Udyam Registration online via the designated portal.
2. No documentation uploads are required; registration is based solely on self-declaration.
3. Upon successful registration, the enterprise is designated as "Udyam" within the portal and assigned a permanent identity number known as the "Udyam Registration Number."
4. Following completion of the registration process, the enterprise receives an e-certificate termed the "Udyam Registration Certificate.

How to register for Udyam registration?

To acquire Udyam registration, MSMEs need to submit their application through the Udyam portal, utilizing the entirely online registration process. Below are the steps to obtain Udyam registration online.

Step 1: Navigate to the Udyam registration portal.

Step 2: Select the ‘For new entrepreneurs who are not registered yet as MSME or those with  EM-II’ option on the homepage.

Step 3: Input the ‘Aadhaar Number’ and ‘Name of Entrepreneur’; then, click ‘Validate & Generate OTP’.

Step 4: An OTP will be sent to the entrepreneur’s mobile number linked to their Aadhaar card. Enter the OTP and click ‘Validate’.

Step 5: After Aadhaar validation, the PAN verification page will appear. Fill in the ‘Type of Organisation’, ‘PAN’ number, and click ‘Validate’. Indicate whether you filed the previous year's ITR and possess GSTIN.

Step 6: Access the Udyam registration application form. Provide essential details including entrepreneur’s name, mobile number, enterprise name, plant/unit location, enterprise address, enterprise status, bank details, unit activity, NIC code, and number of employees.

Step 7: Enter plant and machinery investment and turnover details, select the declaration, and click ‘Submit and Get Final OTP’.

Step 8: Input the final OTP and submit the form. Receive the Udyam e-registration certificate via email.

How to register for Udyog Aadhaar?

Online registration process:

1. Visit the official Udyog Aadhaar registration portal.
2. Enter your Aadhaar number and the name of the owner as per the Aadhaar card.
3. Fill in the required details of the business entity such as name, type, address, etc.
4. Complete the verification process through OTP sent to the registered mobile number.
5. Upon successful verification, you will receive the Udyog Aadhaar number via email.

Offline Udyam registration process:

1. Visit the nearest District Industries Centre (DIC) or MSME office.
2. Fill out the Udyog Aadhaar registration form with accurate details.
3. Submit the form along with necessary documents such as Aadhaar card, business address proof, etc.
4. After verification, the Udyog Aadhaar number will be issued.

Benefits of Udyam registration

• Easy access to loans and subsidies: Registered MSMEs can avail themselves of various schemes and subsidies offered by the government.
• Preference in government tenders: Enterprises with Udyog Aadhaar registration often receive preference in government procurement processes.
• Financial support and credit facilitation: Banks and financial institutions are inclined to provide loans and credit facilities to registered MSMEs at concessional rates.
• Protection against delayed payments: The Micro, Small, and Medium Enterprises Development (MSMED) Act provides for timely payment to MSMEs, ensuring cash flow stability.
• Market promotion: Registered MSMEs are listed in the official Udyog Aadhaar directory, enhancing visibility and credibility in the market.

Udyog Aadhaar login and certificate download

Once registered, MSMEs can log in to the Udyog Aadhaar portal using their Udyog Aadhaar number and the registered mobile number. The portal allows enterprises to update information, download certificates, and avail themselves of various services seamlessly.

To download the Udyog Aadhaar certificate:

1. Log in to the Udyog Aadhaar portal.
2. Navigate to the certificate section.
3. Enter the Udyog Aadhaar number.
4. The certificate can be downloaded in PDF format.

Udyog Aadhaar registration is a pivotal step for MSMEs to gain recognition, access benefits, and thrive in today's competitive market. By simplifying the registration process and offering a plethora of advantages, the government aims to foster the growth and development of small and medium enterprises, driving economic progress and prosperity. Embrace the power of Udyog Aadhaar and embark on a journey towards success and sustainability in the dynamic business landscape.

Why was Udyam introduced?

Udyam registration was introduced by the Indian government to formalise and strengthen the Micro, Small, and Medium Enterprises (MSME) sector. These enterprises play a crucial role in India’s economy, contributing significantly to employment generation, industrial output, and overall economic growth.

Eligibility criteria for Udyam registration

To be eligible for Udyam registration, your business must fall under the category of a Micro, Small, or Medium Enterprise based on the following investment and turnover thresholds:

Documents required for Udyam Registration

The following documents are necessary for Udyam registration:

1. PAN card number
2. Aadhaar number
3. GST number (if applicable)

For proprietorship firms, the Aadhaar card number of the proprietor is needed. In partnerships, it's the managing partner's Aadhaar. For entities like LLPs, companies, cooperative societies, or trusts, it's the Aadhaar of the authorized signatory. The GST number is compulsory only for enterprises requiring GST registration.

Udyog registration fee

Udyam registration incurs no fees; it's entirely free. It's a hassle-free, self-declaration process for MSME entrepreneurs, aiding in accessing various schemes and loans. Mandatory for MSME benefits, registration occurs via the government's official portal, ensuring cost-free online registration for all eligible entrepreneurs.