The central government has made the 19-digit Udyam registration number, previously known as Udyog Aadhar, obligatory for all current and new companies.
In September 2015, the government announced the Udyog Aadhar to offer a unique identity to each micro, small, and medium-sized enterprise. The Ministry of Micro, Small, and Medium Enterprises issues this identifying number. However, the initiative has been renamed Udyam, and all MSMEs, new and old, must re-register on the government portal. Here’s all you need to know about Udyog Aadhaar, also known as Business Aadhaar or Udyam.
What is the distinction between an Udyog Aadhar and an Udyam?
All MSMEs were given a 12-digit unique identification number called Udyog Aadhar by the government. Upon registration, the enterprises would be assigned this number automatically. Since Udyog Aadhar has been replaced by Udyam, any business that meets the MSME criteria must get a 19-digit Udyam registration number. On the official Udyam page, you may apply for an Udyam registration number online.
Udyam / Udyog Aadhar benefits:
Udyog Aadhaar has a variety of advantages and applications:
- Aids in obtaining no-collateral loans from banks.
- MSMEs that are registered are given priority consideration for participation in international trade shows.
- Allows stamp duty and registration costs to be waived.
- Exemptions are allowed under the rules governing direct taxes.
- Barcode registration is eligible for a subsidy.
- Subsidy based on NSIC credit ratings and performance.
- A 15% subsidy is provided under the CLCSS plan for technological upgrades.
- Payments incurred in order to achieve ISO certification will be reimbursed.
How is a business categorised as an MSME?
Micro-business: This category includes businesses with a plant equipment and machinery investment of less than Rs one crore and sales of less than Rs five crores.
Small business: This category includes businesses with a plant, equipment, and machinery investment of less than Rs 10 crores and a turnover of less than Rs 50 crores.
Medium-sized business: This category includes businesses with a plant, equipment, and machinery investment of less than Rs 50 crores and a turnover of less than Rs 250 crores.
What you should know about registering for a Udyog Aadhar:
- Following registration, each business is assigned a 19-digit permanent registration number. There is no need to renew this registration number.
- A company that is registered through this method is known as Udyam, and the permanent identification number issued to it is known as the “Udyam registration number.”
- A certificate will be provided online after the registration process is complete.
- This certificate will include a QR code that may be used to access the company’s information.
- Apart from the Aadhaar number, no additional documents or evidence are necessary to register as an MSME.
- In the event of a proprietorship company, the proprietor’s Aadhaar number must be provided, while in the case of a partnership firm, the controlling partner’s Aadhaar must be provided, and in the case of a Hindu Undivided Family (HUF), the karta’s Aadhaar must be provided.
- The PAN and GST-related facts on the enterprise’s investment and turnover will be instantly synchronised from the government database.
- All businesses with a UAM or EM-II registration, as well as any other registration given by the Ministry of MSME, will need to re-register.
How can I set up a new Udyam company?
Step 1: Go to the Udyam Registration Portal and select the option “For New Entrepreneur.”
Step 2: You will be taken to a new page where you must enter the proprietor’s or managing director’s Aadhaar number or Karta. Enter the entrepreneur’s name.
Step 3: Verify your Aadhaar using an OTP. Fill out the application completely. Your certificate will be created in a timely manner.
How can I register an existing business with Udyam?
All current Udyog Aadhaar-registered businesses must re-register on the Udyam Registration site. Existing businesses that were registered before June 30, 2020, were only valid for a period of up to December 31, 2021. Apart from that, every company registered with any other Ministry of MSME organisation must register with Udyam Registration.
Step 1: Go to the Udyam Registration portal and choose the option “For those who have previously registered as UAM.”
Step 2: Type in your Udyog Aadhaar number and confirm it using an OTP.
Step 3: Fill in the required information, and your certificate will be created in a timely manner.
How can you print your Udyog Aadhar or Udyam certificate?
How to print your Udyam Certificate from the portal is as follows:
Step 1: Go to the Udyam Registration Portal and select ‘Print/Verify’ from the top menu.
Step 2: From the drop-down menu, choose the first option, ‘Print Udyam Certificate.’
Step 3: Fill out the application using your 19-digit Udyam Registration number and cell phone number.
Step 4: After you’ve confirmed your information, you’ll be led to the ‘Print’ option.