Udyog Aadhaar, now known as Udyam Registration, is a 12-digit Unique Identification Number that facilitates registration for the small business sector and is a crucial initiative for Indian small and medium enterprises (SMEs) seeking growth and government support. It was issued by the Ministry of Micro, Small, and Medium Enterprises (MSMEs) of the Government of India in September 2015, and it facilitates a hassle-free, paperless online registration process. The reason behind Udyam registration is to boost the SMB sector in India.
What’s New with Udyam Registration
Mandatory Migration
As of 2023, Udyog Aadhaar registrations are no longer valid. All businesses need to migrate to the Udyam platform, to continue enjoying the benefits. If the entrepreneurs fail to migrate to Udyam Registration, then UAM will not be valid, and they will be required to register again for Aadhaar Udyam Registration.
Simplified Categories
The new registration system classifies businesses into three categories (Micro, Small, and Medium) based on their annual turnover and investment. This simplifies the process and ensures accurate classification
Enhanced Benefits
Udyam registration unlocks a wider range of government schemes and benefits, including easier access to credit, subsidies, and tender participation
Key Benefits of Udyam Registration
- Hassle-free online registration: The process is completely online and free, requiring only your Aadhaar number and basic business details
- Multiple registrations: Entrepreneurs can now register multiple businesses under one Udyam number, simplifying management
- Self-declaration: No documents or proof are required beyond your Aadhaar, promoting transparency and ease
- Government tender preference: Registered MSMEs get priority consideration for government tenders, increasing business opportunities
- Faster payment protection: Udyam registration helps secure protection against delayed payments from buyers
- Access to schemes: Unlock various government schemes and financial assistance programs
- Credibility enhancement: Udyam Registration acts as official proof of your business existence
Documents Required
The following details are required for registration:
- Name of the Owner
- Category
- Name of Business
- Type of Business
- Official Address
- Date of Commencement
- Details of Previous Organization (if any)
- Bank Details
- Number of employees
- National Industrial Classification Code (NIC)
- Amount invested in Plant & Machinery
- Details of Industry Centre (DIC)
Udyam Registration Process
Before this, a lot of paperwork was needed to start a business and get MSME registration done. Two forms were required to be filled: Entrepreneur Memorandum-I and Entrepreneur Memorandum-II (EM-II). However, Udyog Aadhaar Registration simplified this process for the MSMEs to avail of government schemes in the form of subsidies, loans at a low-interest rate, and more.
- Also Read: Types of Business in India
Take a look at the Udyam Registration Process:
Step 1: Visit the official Udyam Registration Portal
Step 2: Enter the 12-digit Aadhaar no. and name of the entrepreneur
Step 3: Click on ‘Validate’ and ‘Generate OTP’
Step 4: Enter the OTP received on the registered mobile number
Step 5: Once the verification is successfully done, fill out the form with all the relevant details
Step 6: Review the form and click on the ‘Submit’ button
Step 7: Enter the OTP again received on the mobile number
Step 8: Click on ‘Submit’ once for the final submission
Note: No registration fees is charged for this process. You can simply download the Udyam Registration Certificate upon submission of the form.
In case you do not have a valid Aadhaar Card, you must immediately apply for Aadhaar enrolment as the MSME- DI, or DSC will file your application based on your Aadhaar enrolment ID slip or any other supporting document such as PAN Card, Voter ID, Driving License, Passport, etc.
Conclusion
The Udyam Registration platform represents a significant step forward in simplifying and streamlining the process for small and medium enterprises (SMEs) in India. Whether you’re a seasoned business owner or just starting out, taking advantage of Udyam Registration is crucial to unlocking government support, boosting your credibility, and securing exciting opportunities for growth in the dynamic Indian market.
FAQs
- Do I need to register again if I already have Udyog Aadhaar?
Yes, all Udyog Aadhaar registrations became invalid in 2023. Migrating to the Udyam platform is crucial to continue enjoying the associated benefits.
- What documents are required for Udyam registration?
The process requires minimal documentation. You’ll need your Aadhaar number, basic business details, bank details, and National Industrial Classification Code (NIC).
- How long does the Udyam registration process take?
The online process is quick and efficient. With all the information at hand, you can complete it within 15-20 minutes.
- What are the key benefits of Udyam registration?
Benefits include easier online registration, access to government schemes, faster payment protection, tender preference, and enhanced credibility.
- Where can I get help with Udyam registration?
The official Udyam website offers detailed information and support resources. Additionally, MSME helplines and industry associations can assist you.
- Is there a fee for Udyam registration?
No, Udyam registration is completely free.
