What is Udyog Aadhar Registration
Udyog Aadhar Registration is an online registration process introduced by the Government of India to register and recognize micro, small, and medium enterprises (MSMEs) in India. This registration process replaces the previous process known as the Udyog Aadhaar Memorandum (UAM) registration.
It can be done through the official website of the Ministry of Micro, Small, and Medium Enterprises (MSME). Here are the steps involved in the Udyam Registration process:
Visit the official Udyam Registration website (udyamregistration.co).
Fill in the required details, such as Aadhaar number, name, business name, PAN, and bank account details.
Verify the details by entering the One Time Password (OTP) sent to the registered mobile number.
Once the details are verified, submit the application.
The registration certificate will be provided instantly in digital form with a unique Udyam Registration Number (URN) and a QR code.
The main purpose of Udyam Registration is to provide various benefits and incentives to MSMEs, such as easier access to credit, subsidies, and other government schemes. Additionally, Udyam Registration simplifies the process of obtaining various licenses and permits required for conducting business.
Udyam Registration also enables the government to maintain a comprehensive database of MSMEs in India, which helps in formulating policies and programs for their growth and development.
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Who is eligible for Udyam Registration?
Any Indian entity that falls under the definition of micro, small or medium enterprise (MSME) as per the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 can apply for Udyam Registration. The MSMED Act has defined the eligibility criteria for MSMEs based on their investment in plant and machinery or equipment and turnover.
Here are the eligibility criteria for MSMEs as per the MSMED Act:
Micro enterprises: An entity that invests up to Rs. 1 crore in plant and machinery or equipment and has a turnover of up to Rs. 5 crore.
Small enterprises: An entity that invests up to Rs. 10 crore in plant and machinery or equipment and has a turnover of up to Rs. 50 crore.
Medium enterprises: An entity that invests up to Rs. 50 crore in plant and machinery or equipment and has a turnover of up to Rs. 250 crore.
Note that the investment and turnover criteria mentioned above are exclusive of taxes. Also, entities that are already registered under the Udyog Aadhaar Memorandum (UAM) registration process will need to re-register under the Udyam Registration process to avail the benefits provided by the government.
In summary, any Indian entity that qualifies as a micro, small or medium enterprise based on the investment and turnover criteria mentioned above is eligible for Udyam Registration.
Is Udyam Registration mandatory for MSMEs in India?
Yes, Udyam Registration is mandatory for all new and existing micro, small and medium enterprises (MSMEs) in India. The Government of India has made Udyam Registration compulsory for all MSMEs to avail the benefits provided under various schemes and programs of the government.
Earlier, the Udyog Aadhaar Memorandum (UAM) registration process was introduced as a voluntary registration process for MSMEs. However, with the introduction of the new Udyam Registration process, the government has made it mandatory for all MSMEs to register under this process.
Additionally, Udyam Registration is required to obtain various licenses, permits and clearances from the government, such as GST registration, trade licenses, NOCs from pollution control board, etc. Hence, it is essential for MSMEs to register under Udyam to operate their business smoothly and avail the benefits provided by the government.
What advantages do MSMEs receive from Udyam Registration?
Micro, small, and medium-sized businesses (MSMEs) in India can profit from Udyam Registration in a number of ways.
 Here are some of the key benefits of Udyam Registration:
- Access to government schemes and incentives: MSMEs registered under Udyam are eligible for various government schemes and incentives, such as credit guarantee schemes, subsidies, and exemptions.
- Easier access to credit: Banks and financial institutions consider Udyam Registration as a valid proof of the existence of the MSME. Hence, Udyam registered MSMEs can avail loans at lower interest rates and with easier terms and conditions.
- Protection against delayed payments: Udyam registered MSMEs can file complaints against delayed payments under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, and the government provides conciliation and arbitration facilities to resolve such issues.
- Reduction in compliance burden: Udyam Registration integrates multiple registrations and licenses required by MSMEs under various laws, such as GST, EPF, and ESI, and simplifies the process of obtaining such licenses.
- Facilitates exports: MSMEs registered under Udyam can avail various benefits under the Foreign Trade Policy (FTP), such as lower customs duties, exemption from certain taxes, and assistance under various export promotion schemes.
- Priority in government procurement: The government has mandated that 25% of its procurement should be from MSMEs, and Udyam registered MSMEs get preference in such government procurement.
In summary, Udyam Registration provides MSMEs with easier access to credit, protection against delayed payments, access to government schemes and incentives, and reduction in compliance burden. Udyam Registration also helps MSMEs to expand their business and facilitates exports.
Can I edit my Udyam Registration details after submitting the application?
Yes, it is possible to edit your Udyam registration details after submitting the application. The Ministry of Micro, Small and Medium Enterprises (MSME) has provided a provision for Udyam registration applicants to make changes or modifications in their registration details.
To make changes in your Udyam registration details, you can follow these steps:
- Visit the Udyam registration portal (udyamregistration.co).
- Login to your Udyam registration account using your registered mobile number or email ID.
- Click on the “Edit” button to make changes in your registration details.
- After making the necessary changes, submit the application again.
- It is important to note that you can make changes in your Udyam registration details only if you have not yet received the Udyam registration certificate. Once you receive the Udyam registration certificate, you will not be able to make any changes in the registration details. Therefore, it is advised to review your registration details carefully before submitting the application.
