Udyam Aadhar is a transformative initiative launched by the Indian government to empower Micro, Small, and Medium-sized Enterprises (MSMEs), which form the backbone of the country’s economy. MSMEs play a crucial role in fostering economic growth, generating employment opportunities, and promoting inclusive development across various sectors.
The Ministry of Micro, Small, and Medium Enterprises introduced Udyam Aadhar to simplify the registration process for MSMEs and provide them with access to numerous benefits. Udyam Aadhar Registration is a key enabler for MSMEs to flourish and contribute significantly to India’s economic prosperity.
What is Udyam Aadhar Registration?
Udyam Aadhar is a unique identification number provided by the Indian Ministry of Micro, Small, and Medium Enterprises (MSME) to small and medium-sized enterprises (SMEs). The Udyam Aadhar registration is created to simplify the process of availing various government benefits and schemes for MSMEs. The Udyam Aadhar is a unique registration mechanism that generates a 12-digit unique identification number based on the details provided by the enterprise.
Udyam Aadhar aims to support and promote Micro, Small, and Medium enterprises, provide credit access, and enable participation in government procurement programmes.
Types of Enterprises Covered by Udyam Aadhar
The Udyam Aadhar covers micro, Small and medium-sized enterprises and the required Eligibility criteria for Udyam registration are divided into three main aspects;
- Enterprise type
- Annual turnover
Micro Enterprises: These are the smallest businesses with investments below Rs. 1 crore and turnovers below Rs. 5 crores.
Small Enterprises: These are businesses with an investment of over Rs. 1 crore but not exceeding Rs. 10 crores in plant and machinery or equipment, and a turnover of not more than Rs. 50 crores.
Medium Enterprises: These businesses have an investment in plant and machinery or equipment between Rs. 10 crore and Rs. 50 crore and an annual revenue of not more than Rs. 250 crores.
Features of Udyam Aadhar Registration
Udyam Aadhar registration can be done completely online through the official Udyam registration portal (udyamregistration.gov.in). This makes the registration process convenient and easily accessible for MSMEs.
Unique Identification Number
Upon successful registration, the enterprise is issued a 12-digit unique identification number called the Udyam Aadhar Number. This number serves as the identification for the enterprise and is required for availing various benefits and schemes.
The Udyam Aadhar registration process is free of cost. MSMEs do not need to pay any fee to obtain the Udyam Aadhar number.
The Udyam Aadhar system simplifies the compliance process for MSMEs, reducing paperwork and making it easier for them to participate in government procurement and other business opportunities.
The Udyam Aadhaar certificate has a lifetime validity, unlike the earlier Udyog Aadhaar, which needed renewal after a certain period.
Instant Registration Certificate
Once the registration details are submitted, the enterprise receives instantly receives the Udyam Aadhar certificate, providing quick access to benefits and schemes.
Access to Government Schemes and Benefits
Udyam Aadhar-registered enterprises gain access to various government schemes, subsidies, and incentives created to support and promote MSMEs in India.
Eligibility Criteria for Registering for Udyam Aadhar
Type of Enterprise
Udyam Aadhaar registration is applicable only to micro, small, and medium-sized enterprises (MSMEs) operating in India. It is not available for larger enterprises.
Classification Based on Investment and Turnover
The eligibility of an enterprise for Udyam Aadhar registration is determined based on its investment in plant and machinery or equipment and its annual turnover. The criteria differs for micro, small, and medium enterprises.
To register for Udyam Aadhar, the enterprise needs to provide a self-declaration stating its existence, type of organisation (Proprietorship, Partnership, Company, etc.), and other relevant details.
Valid Aadhar Number
The Aadhar number of the authorised signatory of the enterprise is required for Udyam Aadhar registration.
Udyam Aadhar Registration Process
Step 1: Go to the official Udyam registration portal at https://udyamregistration.gov.in.
Step 2: Select the tab For new Entrepreneurs who are not registered yet as MSME or those with EM-II on the registration portal.
Step 3: Enter Aadhar Number of the authorised signatory of the enterprise as per the Aadhar card. The Aadhar number will be used for verification purposes.
Step 4: Validate Aadhar with an OTP (One-Time Password) will be sent to the mobile number linked with the provided Aadhar number.
Step 5: After validating with OTP, enter the Enterprise Details. Fill in the required details of the enterprise, such as name, type of organisation (Proprietorship, Partnership, Private Limited, etc.), location, and other relevant information.
Step 6: Select the appropriate Udyam category based on the investment and turnover criteria:
- Micro Enterprise
- Small Enterprise
- Medium Enterprise
Step 7: Click on ‘Agree on terms and policies’ and submit a Declaration confirming the accuracy of the information provided.
Step 8: Validate the email I’D and mobile number used to generate the Udyam registration number (URN).
Step 9: Download the e-registration certificate received on registered mail ID or download it from the Udyam registration portal using the URN.
Benefits of Udyam Aadhar Registration
Udyam Aadhar registration offers several benefits to micro, small, and medium-sized enterprises (MSMEs) in India. Some of the key advantages of obtaining Udyam Aadhar registration include:
1. Access to Government Schemes and Subsidies
Udyam Aadhar registration enables MSMEs to access various government schemes, subsidies, and incentives designed to promote the growth and development of small businesses. These schemes may include financial assistance, credit support, and technology upgradation programmes.
2. Collateral-Free Loans
Many financial institutions offer collateral-free loans and credit facilities to small and medium-sized enterprises that have Udyam Aadhar registration. This makes it easier for small businesses to secure loans for expansion or working capital.
3. Priority in Government Procurement
Small and medium-sized enterprises that are Udyam Aadhar-registered often given preference in government procurement contracts. This preference can help MSMEs secure more business opportunities from government agencies and public sector enterprises.
4. Subsidies for Technology Upgradation
Udyam Aadhar registered MSMEs may be eligible for subsidies and assistance in adopting modern technologies and upgrading their production processes to enhance productivity and competitiveness.
5. Subsidy on Trademark and Patent Registration
MSMEs can avail significant fee concessions on trademark and patent registration through Udyam Aadhar registration, encouraging them to protect their intellectual property.
6. Bank Loan Subsidies
Udyam Aadhar registration enhances the credibility and trustworthiness of MSMEs, due to which the MSMEs can avail bank loans on lower interest rates.
Documents Required For Udyam Registration
The Udyam Aadhar registration is totally a digital process, where the enterprise has to fill the self-declaration form.
Below mentioned are the required documents:
- PAN of the enterprise
- GST Certificate, if applicable
- Aadhar number of authorised signatory
- Phone number
- E-mail address
- Business type, address proof
- Business Commencement Date
- Bank details
1. Who is eligible to register for Udyam Aadhar?
Ans: Micro, small, and medium-sized enterprises (MSMEs) operating in India can register for Udyam Aadhar. The eligibility is based on the enterprise’s investment in plant, machinery, or equipment and its annual turnover.
2. How can I register for Udyam Aadhar?
Ans: Udyam Aadhar registration can be easily done through the official Udyam Aadhar portal (https://udyamregistration.gov.in/). The process involves providing essential details about the enterprise and the Aadhar number of the owner or authorised signatory.
3. Is there any fee involved in Udyam Aadhar registration?
Ans: Udyam Aadhaar registration is free of cost. Enterprises must not pay fees to obtain their Udyam Aadhar registration number.
4. What are the benefits of Udyam Aadhaar registration?
Ans: Udyam Aadhaar registration offers various benefits, including access to government schemes and subsidies, collateral-free loans, lower interest rates, and priority in government procurement.
5. How long is the URN valid?
Ans: The Udyam registration number (URN) is valid for a lifetime.