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Udyog Aadhar Registration

Udyog Aadhar or MSME registration is a certificate that is provided to micro, small and medium-sized businesses in India under the MSME Act, 2006. Udyog Aadhar used to be referred to as MSME registration earlier.

Lately, the process has been merged with Udyog Aadhar registration and the application can be made online. The primary objectives of the Micro, Small, and Medium Enterprises concerning the Udyog Aadhar registration are as follow:

  • To enable the micro, small and medium enterprises to compete with international competition efficiently;
  • To promote the growth of micro, small and medium enterprises on a large scale to effectively tackle the widespread problems of unemployment and poverty;
  • To extend the benefits of various government scheme at one stop to the SSI units;
  • To safeguard SSI from financial harassment in the hands of big industries.

Eligibility for Udyog Aadhar Registration

It is not mandatory for all businesses to obtain Udyog Aadhar registration. Only the entities mentioned below that are classified as micro, small or medium enterprises as per the table below based on the investment in plant and machinery are eligible for Udyog Aadhar.

Classification Manufacturing Sector Service Sector
Micro Enterprises Upto Rs.25 lakhs in plant and machinery Upto Rs. 10 lakh investment in Equipment
Small Enterprises Upto Rs.5 crore investment in plant and machinery Upto Rs. 2 crores investment in Equipment
Medium Enterprises Upto Rs. 10 crore investment in plant and machinery Upto Rs.5 crore investment in equipment
Benefits under Udyog Aadhar Registration

  • Udyog Aadhar registration has simplified the process of registering the businesses under MSMEs but there are some additional benefits to it.
  • Bank loans can be availed at a lower rate of interest, also in some cases, the bank loans can be availed without collateral or mortgage.
  • The applicant is also available for government subsidies.
  • The applicants get financial support for participating in foreign expos to showcase their products.
  • Udyog Aadhar registration also reduces the cost of setting up the business or patenting.
  • There are also various tax rebates and exemptions for small and medium enterprises that have done Udyog Aadhar registration.
  • There are tariff subsidies that can be availed along with capital and government subsidies.
  • Licenses, approvals, and registration become easier with Udyog Aadhar registration.

Documents Required for Udyog Aadhar Registration

To Obtain Udyog Aadhar Registration in case of proprietorship the applicant’s personal Aadhar is the main requirement. Apart from this only the email and mobile number are required.

  • In the case of proprietorship, the applicant’s Aadhar is mandatory.
  • In the case of a Partnership, the partner Aadhar can be used.
  • In the case of a Company, the Directors Aadhar can be used.
  • In the case of LLP, the Designated Partners Aadhar can be used.

If an applicant or an authorized signatory of a business does not have Aadhar then he or she must first apply for Aadhar at an Aadhar enrolment center. Once, the Aadhar is obtained the Udyog Aadhar process can be started.

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Frequently Asked Questions

What is Udyog Aadhaar?

Udyog Aadhar is Aadhaar for micro, small and medium enterprises in India. The government provides a unique 12 digit number too small and medium enterprises.

Who is eligible for Udyog Aadhar?

Every type of business entity including one-man company, proprietorship, partnership firm, manufacturer, producer, limited company, private limited company, limited liability partnership firm, co-operative societies, any association of individuals, retailors, Hindu Undivided Family, or any other undertaking should get Udyog Aadhar Registration.

What is the difference between an LLP registered through an MCA and LLP registered through Udyog Aadhar?

LLP cannot be registered through udyog aadhaar as it can registered only with MCA only. Udyog Aadhaar is related to MSME registration.

How to register Udyog Aadhar for Service Sector?

Any service sector can apply for Udyog Aadhar registration free of cost with a maximum of Rs. 5 Cr investment in equipment.

IS MSME registration and Udyog Aadhar the same?

Yes, MSME registration is converted into Udyog Aadhar registration.

What protection is provided for the enterprises by the MSMED Act?

As per the MSMED Act, if the buyer has purchased goods or availed services from an MSME which has filed UAM, then the buyer shall make payment on or before the date agreed upon between him and the supplier in writing. The Act further stipulates that if the period between the buyer and supplier is agreed in writing, such period shall not exceed 45 days from the day of delivery of goods or rendering of services.