For the country's business class, there are plenty of schemes and initiatives that the Indian government is launching. If you belong to this Industry, you will have to obtain the Udyog Aadhaar or Small-Scale Industry (SSI) registration certificate.
Such a document is meant to assist your small-scale business to utilise numerous government-sponsored schemes and incentives. However, if you have not yet applied for Udyog Aadhaar, you can easily obtain the SSI certificate through the Udyog Aadhaar online application and registration.
In this post, you will find the essential details regarding Udyog Aadhaar and how you can complete the online registration for MSME. Let's find out ahead.
Micro, small, and medium-sized businesses are registered under the MSME sector. The entities are classified depending upon whether they invest in Manufacturing or the service sector.
According to the MSME data, this sector accounts for nearly half of the total exports, 45% of total industrial employment, and 95% of industrial units that produce more than 6000 goods. The rise of these industries will boost the Economy while also reducing unemployment by employing many unskilled and semi-skilled workers. As per the recent announcement by the Indian government, MSMEs registered under GST would receive a 2% interest subsidy from the government for loans of Rs. 1 crore under the MSME Credit Scheme.
As mentioned above, there are three types of businesses under the MSME sector - Small, Micro, and Medium. This classification is based on the initial investment made when the firm or entity was registered.
The MSME can only be used by -
Businesses engaged in producing items for any of the industries included in the Industries Act of 1951's First Schedule are included in this. Manufacturing companies are classified according to the amount invested in plants and machinery.
These businesses provide services and are classified according to the amount of money they invest in equipment.
Thus, any business entity that meets the above criteria can apply for MSME registration.
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Based on the following criteria, an enterprise is categorised as a micro, small, or medium enterprise:
If you are thinking of beginning an MSME business, here are some key points that you must keep in mind:
After completing the registration with the Ministry of Micro, Small and Medium Enterprises, the MSMEs used to receive a 12-digit Unique identification number (UIN), known as the Udyog Aadhaar or Laghu Udyog. With this UIN, the entities get their due recognition in the industry.
However, now the Indian government has replaced the Udyog Aadhaar with the Udyam. Presently, through the Udyam registration platform, any enterprise that meets the MSME definition can easily complete the Udaym registration for their business.
Both manufacturing and service-oriented businesses are eligible for the SSI and Udyog Aadhaar certificates. However, some restrictions are mentioned as follow:
|Enterprise Type||Net worth|
|Micro Enterprises||Up to Rs. 25 Lakh|
|Small Enterprises||Up to Rs. 5 Crore|
|Medium Enterprises||Up to Rs. 10 crore|
|Enterprise Type||Net Worth|
|Micro Enterprises||Up to Rs. 10 Lakh|
|Small Enterprises||Up to Rs. 2 Crore|
|Medium Enterprises||Up to Rs. 5 Crore|
The Udyog Aadhaar Memorandum is a one-page self-certification registration form. In this form, you can disclose business-related information, such as the entity's existence, Bank account data, personal (promoter) data, and other required information.
The government waives the charge for filing the Udyog Aadhaar Memorandum. Following the application submission, a Udyog Aadhaar Acknowledgement will be issued and sent to the email address specified in the UAM, including the unique Udyog Aadhaar Number (UAN). If you already have an Entrepreneurship Memorandum-I, Entrepreneurship Memorandum-II, or both, or a Small-Scale Industry registration, you do not have to file Udyog Aadhaar Memorandum.
New MSMEs and those with Udyog Aadhaar can complete the Udyam registration by visiting the official portal, udyamregistration.gov.in. This portal provides two ways for obtaining an Udyam Registration Certificate, which is as follow:
Here is the online procedure for UDYAM registration for new enterprise:
For New Entrepreneurswho are Not Registered yet as MSME or those with EM-II option
For those who already have the UAM registration, here are the steps to follow for Udyog Aadhar registration:
Businesses that already have Udyog Aadhar Registration must re-register for Udaym registration. There is no charge for transferring from Udyog Aadhar to Udyam Registration.
MSMEs can apply for Udyog Aadhaar free registration entirely online through the Udaym Registration Portal. There is no price for registering using this portal. It is entirely free.
Visit the official site of Udyam Registration, in the homepage, you will find the option for 'Print/Verify'
Under it, a drop-down option will come, select the 5th option stating 'Verify Udyog Aadhar'
You will be directed to 'Udyog Aadhaar Memorandum (UAM),' follow the instructions for verifying online UAM
A large number of new businesses are constantly being formed, and several of the registered companies have huge funds since investors back them up. Through MSME registration, all of these entrepreneurs can also utilise government schemes' benefits. Thus, it is essential to register yourself if not done yet.