Udyog Aadhaar MSME Registration

Nirmala Sitharaman, the Finance Minister of the country, recently announced the measures for MSMEs that included a massive investment of 50,000 Crore/- INR into the MSMEs that eligible.

Hence, a big shout to all the small businesses out there, to keep an eye and register on the UAM (Udyog Aadhar Memorandum) portal.

Currently, almost one crore of the MSME’s had registered for this Udyog Aadhar across India since the inception of the scheme. The small businesses can now use this initiative to go onto register their places on the portal.

In this thread, we will provide all the relevant information regarding Udyog Aadhaar MSME Registration, so read on:

What is the UAM (Udyog Aadhar Memorandum) portal all about?

This UAM portal is a registration form of one-page designed to help all the MSMEs out there to get themselves registered and go on to self-certify their complete details of the businesses, such as details of the promoters, bank account details, etc.

Using the UAM portal, the small businesses can declare their existence, the details of the Aadhar card, bank accounts, etc. The government has made the entire process of registration free of cost.

Process of registering for the Udyog Aadhar Memorandum portal:

Here is a step by step guide that tells about how a small business can register and use the benefits of the Udyog Aadhar Memorandum portal:

1. Firstly, the individual needs to login to the official website.
2. The business owner should be sure to have a registered Aadhar card. While noting, they will be required to enter the details of the Aadhar card and the business owner’s name.
3. There will be a box with the name ‘Terms and Conditions’; make sure that you go through every point vital.
4. Next, click on the tab ‘Validate and Generate OTP.’
5. You will immediately receive an OTP on the registered number that has been inserted by you.
6. Enter the correct OTP.
7. Once this process is verified, the business owner will be required to fill an online form.
8. In the online form, every information needs to be filled as that is mandatory.
9. Make sure to attach the relevant documents, that are:
   1. Business owner name
   2. Aadhar card number
   3. Bank Details
   4. Number of employees in the company
   5. Applicants category
   6. The type of organization
   7. The NIC Code (National Industrial Classification)
   8. DIH (District Industry Centre) details
   9. When the business was started

10. Once the entire form is filled, click on ‘Submit.’ On submission, you will be asked to re-enter the OTP that you received a few minutes back.
11. Next, click on the final submission, and it is done.

Note: In terms of registration, the government is extremely flexible. They have allowed the individuals to file for more than 1 Udyog Aadhar Number by using the same Aadhar card as used once.

After completing the entire registration process, the unique UAN number is sent via the registered mail. Through this UAN number, the small businesses are liable to take many of the benefits given by both the state and central government.

Once the full registration is adequately accepted, the government does go on to provide a formal certificate to the business. This certificate is essential as it helps in availing of the benefits that depend on the particular business category your business belongs to.

The Eligibility Criteria:

There are various MSME’s going in losses due to the entire COVID-19 pandemic and the lockdown. Hence, to provide the benefits to make them sustain in the business, the government has given a whole new definition to the MSMEs.

Here are the details of the classification done by the government:

According to the new Udyog Aadhar Memorandum portal, the MSME sector will now get classification based on their annual turnover. Here is a detailed division, done by the government:

A: Micro – The investment will be up to 1 crore, and the turnover should be less than five crores.

B: Small – The investments will be up to 10 crores, and the turnover should be less than 50 crores.

C: Medium – The investments will be up to 50 crores, and the turnover should be less than 250 crores.

The benefits MSME’s will avail as per the new definition:

If in case your business falls under the MSME category, then here are the different grants given by the government to help in the business operations:

A: Exemption to GST:

In case you own a small business, whose turnover is less than 40 Lakhs INR, then you do not need to register for GST. The previous limit of GST was 20 lakhs that has now got doubles to 40 Lakhs.

B: ISO Reimbursement:

To further strengthen and support the MSME sector, the government has now expanded the ISO MSME reimbursement scheme.

C: Financial Aids:

The business registered on the portal does end getting the extra financial aid when they participate in various foreign expos.

The government makes sure that these businesses stay in the market and do not vanish away. Moreover, the government provides then enough opportunities to take part in the events and shows, that help the owners and employees to take part and network actively.

This is also the best place for them to show their products and service and do indirect marketing.

D: Easy Access to Current Account:

With the help of the Udyog Aadhar Memorandum number, that one gets after registering on the portal, the company can get access to open the current account of the business with ease without much formalities that generally takes a tremendous amount of time and efforts.

E: Government Aids:

The government also gives these businesses the aid to get reduces and discounted prices for filling out the different types of trademarks and patents.

F: Easy Loans:

These businesses also end up getting easy access to loans that, too, with low-interest rates. There are times when they get loans without any credit guarantee as well.