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Udyog Aadhar: All you need to know about Udyog Aadhaar

What is Udyog Aadhar?

The SME Sector is the backbone and the foundation of India's economic growth with over 42 million units which comprise about 95% of the total industrial establishments in the country. To encourage and facilitate the contribution of this sector, the Ministry of Micro, Small & Medium Enterprises in conjunction with the Government of India has launched the Udyog Aadhar facility. It is a 12-digit Unique Identification Number (UIN) similar to Aadhar but for businesses. As an MSME/SME, you can enjoy special Udyog Aadhar benefits through subsidies as its main purpose is the promotion of registered business.

Eligibility for Udyog Aadhar Registration

All small, medium and micro enterprises belonging to the manufacturing or the service sector are eligible for registration.

Udyog Aadhar Registration

The Udyog Aadhar scheme offers a free registration facility. There are two methods of registration

Registration without using Aadhar Number

Step 1: Apply for Aadhar Enrolment if eligible under Section 3 of the Aadhaar Act.

Step 2: The concerned MSME-DI or DIC shall file for Udyog Aadhar if the following documents are produced:

  • Aadhar enrolment ID slip or a copy of the aadhar enrolment request.
  • Voter ID card, driving license, passport, bank passbook, PAN card, etc.

Registration using Aadhar Number:

Step 1: Navigate to the official Udyog Aadhar website

Step 2: Enter the Aadhar number in the space provided. Then enter your name and click on the box ‘Validate and Generate OTP’

Step 3: Enter the OTP generated on your phone number linked to your Aadhar card.

Step 4: On submitting the OTP, a new form will be generated to fill out and submit.

Step 5: Submit the application by generating another OTP.

Documents Required for Registration:

Registration for Udyog Aadhar does not require any submission of documents. However a few documents would be required to be kept handy to provide information at the time of registration. These are listed below:

  • Aadhar Card or Aadhar Enrolment Slip
  • Bank passbook with photograph
  • Voter ID Card
  • Passport
  • PAN Card
  • Driving License
  • Employee ID Card.

Udyog Aadhar Update:

The following steps are required to be followed for updating any information in your Udyog Aadhar:

  • Under the UAM field, select your preferred mode of receiving OTP either on your registered phone number or registered email id.
  • Fill up the field with the Captcha code provided and click on the ‘Validate and Generate OTP’ button.
  • Enter the generated OTP to log in to your account and make the necessary changes and save them.

Features and Benefits of Udyog Aadhar:

The significant features and benefits can be summarized as follows:

  • Access to loans without guarantee and at subsidized rates.
  • The free and hassle-free registration process
  • Privilege to apply for micro business loans and other related schemes
  • No requirement to submit documents.
  • Ability to file more than one Udyog Aadhar
  • Self-declaration facility available
  • 50% fee reduction for filing patents and trademarks.
  • Credit guarantee scheme availment
  • Protection from delayed payments
  • Unsecured loans with lower rates of interest.
  • Financial assistance from the Government of India for participation in foreign business exposures.
  • Discounts on electricity bills

Who Should Get Udyog Aadhar?

Every type of business entity including

  • a one-man company
  • Proprietorship
  • Partnership firm
  • Manufacturer
  • Producer
  • Service provider
  • Limited liability partnership, cooperative society, or Hin Undivided Family

Should get Udyog Aadhar Also, your business needs to meet the eligibility criteria as defined in the MSME Act, 2006.

Udyog Aadhar Certificate Printing

The Udyog Aadhar registration certificate can be printed by following the procedures stated below:

  • Visit the Udyog Aadhar website
  • Enter your UAM number and the registered mobile number on this page
  • Press the Submit button
  • Once logged in, follow the on-screen instructions to obtain your Udyog Aadhar

How do you Select the appropriate NIC code based on the enterprise's activity?

The NIC code for the company can be selected once the Aadhar number has been authenticated by the system. It is required to be selected from a three-stage drop-down list.

The list will be displayed based on the major activity chosen for the organization ie. manufacturing or service activity.

Is Udyog Aadhar required for Merchants or Traders?

No, a merchant is not required to obtain a Udyog Aadhar, however, if they want to avail of advantages like cheaper interest rates on loans, waivers on stamp duty and registration costs, they may enroll.

Udyog Aadhar Memorandum

Udyog Aadhar Memorandum is a registration form where the MSME certifies its existence and provides mandatory information including the applicant’s Aadhar number, bank account details etc. After submitting the form, an acknowledgement form containing the Unique Aadhar Number or UAN is released to the registered email id of the applicant

Is Aadhar Number mandatory for filing UAM?

The process of filing for Udyog Aadhar can be done online by individual owners of the enterprises if they have an Aadhar number. However, for those not having Aadhaar Number, an offline application needs to be filed with the general manager of the District Industries Center.

Udyog Aadhar for Service Sector

Any service sector enterprise can apply for Udyog Aadhar registration free of cost if they have up to a maximum of 5 cr of investment in equipment. Details like Aadhar Card number, Bank details etc are required for the same.

How to Check MSME Certificates Online?

  • Visit the MSME Aadhar verification website
  • Enter your 12-digit UAM
  • Key in the verification code given in the captcha image
  • Click on the ‘Verify’ option

How to Validate Udyog Aadhar Online:

  • Enter a Valid Udyog Aadhar Number as registered on the website
  • Enter the 10-digit registered mobile number
  • Enter the verification code from the captcha image
  • Click on Validate Udyog Aadhar

Is GST Number mandatory for Udyog Aadhar?

Yes, under notification no S.O. 2119 (E) dated 26th June 2020 published in the official Gazette, para 6 elaborates on the Registration process.

Conclusion

The SME sector is one of the most important and fastest-growing industries today. Most start-ups and other self-generated businesses are a part of this. Getting a Udyog Aadhaar can enhance the growth of this sector due to its several benefits.

FAQs of UDYOG AADHAR

1. How to choose the right NIC code as per the activity of the enterprise?

The system generally validates the aadhaar number before the user selects the enterprise's NIC code. A 3 stage drop-down menu is generally enabled to select the NIC code. The list of the NIC code is given based on the manufacturing or service sectors in the industry.

2. Is udyog aadhaar site available in any other language except English?

No, at present the only language is English but Hindi may be available in the coming future.

3. Is your personal data safe on the UAM portal?

Yes, your data is safe on the UAM portal. The data on the portal is password protected and it can only be accessed by the respective State Government employees as per their requirements.

4. Are EMI and EMII still being used?

No, EMI and EMII are replaced by UAM. This replacement has taken place after 18th December 2015.

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