Udyog Aadhar Registration is also called MSME registration. It is a certificate that is provided to micro, small and medium enterprises under the MSME Act, 2006.
The main objectives of the Udyog Aadhar Registration are:
- To create an opportunity for the MSME enterprises to compete with the international firms.
- To flourish MSME enterprises to effectively tackle the widespread issues of unemployment and poverty
- To act as a one-stop-shop for providing the benefits of the government schemes to the small scale industries
- To safeguard the small scale industries from the financial harassments in the hands of large scale industries
Importance of Udyog Aadhar
- Easy sanction of bank loans at a lower rate of interest.
- The facility of the Credit guarantee scheme
- Exemption on Excise duty
- The exemption under direct tax laws
- The interest rate stipulated by RBI, for the time being, is thrice on the Delayed Payment Act.
- Other subsidies from state government such as:
- Extended credit facilities
- Industrial extension support and services
- Assistance in marketing (both outside and within the country)
- Assistance for construction of industries in the underdeveloped area
- Technical consultancy
- Assistance in the capital for enhancing technology in MSME’s
In this article, we will try to understand the type of companies that are eligible for the Udyog Aadhar Registration
Who is eligible to obtain Udyog Aadhar Registration?
Engaged in the manufacture or production of goods by employing plants and machinery in the process. The manufacturing unit is classified into Micro, Small, Medium enterprises based on the investment done in machinery.
The enterprises that are engaged in rendering services to the customers. Based on the investment in the equipment, service enterprises are classified into Micro, Small, and Medium enterprises.
As per the below-mentioned table, Manufacturing and Service are classified based on the plant and machinery
|Classification||Manufacturing Sector||Service Sector|
|Micro Enterprises||Investment up to Rs 25 lakhs in plant and machinery||Investment up to Rs 10 lakhs in equipment|
|Small Enterprises||Investment up to Rs 5 crore in plant and machinery||Investment up to Rs 2 crore in equipment|
|Medium Enterprises||Investment up to Rs 10 crore in plant and machinery||Investment up to Rs 5 crore in equipment|
What factors are not considered an investment?
For manufacturing ventures, land and building can’t be tallied toward the complete investment. Additionally, the original cost of the hardware and plant and machinery is considered; however, depreciation cost can’t be figured in.
Who is not eligible to obtain Udyog Aadhar Registration?
Following enterprise types are not eligible for Udyog Aadhar Registration:
- Service Enterprises having an investment of more than Rs 5 crores in equipment
- Manufacturing Enterprises having an investment of more than Rs 10 crores in plant and machinery
- Retail and Wholesale Entities cannot register for Udyog Aadhar
What are the other factors to be considered, to become eligible for Udyog Aadhar Registration?
- One must be a citizen of India and age above 18 yrs.
- One must have a valid Aadhar card issued by the Central Government
- Have a legal business idea along with the name
- Must have exact Expense and Income details
- Have all the required machinery and detailed procedure for the production
- One has to be clear about his/her type of product and services
- One must give complete details about the number of employees and their names
- One must provide a complete address like the place, district, state
How to check the eligibility?
- One can visit the website https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx and check eligibility for MSME registration for their industry after entering a valid Aadhaar number
- The online Udyog Aadhaar registration process has been created to encourage the online filing of Entrepreneurs Memorandum for micro, small and medium enterprises.
- Therefore, in conclusion, it simplifies the registration process with an online registration form.
A few years back it was a herculean task to do a Udyog Aadhar Registration because the registration process was complicated and lengthy, however, currently, the Government has simplified the process of registration through an online self-verification process. It is easy to follow the steps to register and once the person gets the valid Aadhar number then he/she can make the most of the government facilities in improving the small scale of enterprises.