The Micro, Small, and Medium Enterprises (MSME) sector has been essential to India’s development during the previous five decades. MSMEs contribute to the industrialization of rural and undeveloped areas, eliminating regional disparities and ensuring more effective and equitable distribution of national revenue and wealth, as well as giving plentiful employment possibilities at lower capital costs.
Although the Indian government makes numerous attempts to support MSME and SSIs, it is the responsibility of state governments to promote and expand small businesses. The Micro, Small, and Medium Enterprises Development (MSMED) Act were passed in 2006 to provide subsidies and exemptions to MSME. The Act requires all firms to register, however, most do not due to the amount of paperwork involved. As a result, the ministry decided to adopt the Udyog Aadhaar in 2015, which makes MSME/udyam registration easier and allows them to participate in a variety of federal and state-run activities.
Memorandum on Udyog Aadhaar (UAM):
A UAM is a free one-page registration form on which an MSME self-certifies its existence, bank account information, owner/Aadhaar promoter numbers, and other relevant data.
After submitting the form, an acknowledgment form with the applicant’s unique Udyog Aadhaar Number (UAN) will be sent to them via email.
Because this is a self-declaration form, no supporting documents must be uploaded or submitted. Any state or federal entity, on the other hand, has the power to seek any paperwork as proof of the information in the Udyog Aadhaar Memorandum.
Online msme/Udyog Aadhaar Form Information:
The following information must be entered into the form:
Aadhaar number: A 12-digit Aadhaar number is assigned to the applicant.
The name of the proprietor as it appears on the Aadhaar card
Validation: The candidate must click the Validate Aadhaar button to verify Aadhaar. This is required in order for the user to continue filling out the form.
Reset For each Aadhaar, the applicant can use the reset option to clear the Aadhaar No. and owner’s name fields.
The applicant has the option of being classified as General, Scheduled Caste, Scheduled Tribe, or Other Backward Castes (OBC). Verification of the same may be asked if and when necessary.
The Name of the Business: This is the name by which the applicant wants his or her business to be known in the public as a legal entity. It’s worth mentioning that a single applicant can use the same Aadhaar number to register many businesses in his or her name.
Organizational structure: The correct type of organisation for the company must be chosen. Only one UAN will be given to each business.
Postal address: The company’s complete postal address must be supplied, including state, district, pin code, phone number, and email address.
Details of previous registrations: If the applicant’s business has previously been issued a valid EM-I/II registration under the MSMED Act 2006 or a valid SSI registration prior to the aforementioned Act, that number must be mentioned in the appropriate location
Information on the bank account that will be used to manage the company must be provided by the applicant. The information includes the account number, bank branch, and IFSC code. All information can be found on the account holder’s chequebook or by directly contacting the relevant bank.
For Udyog Aadhaar, the firm must choose either “manufacturing” or “service” as its primary activity. Manufacturing as a primary activity must be specified if the company does both but manufacturing is the mainstay.
NIC Code (National Industry Classification Code): The applicant can select multiple National Industrial Classification-2008 (NIC) Codes to include all of their activities by selecting the “Add More” option. After choosing the “Manufacturing” radio choice, click the “Add More” button to include Manufacturing.
The Central Statistical Organisation (CSO), which is part of India’s Ministry of Statistics and Program Implementation, creates these codes.
A person employed: You must include the total number of people who are paid directly by the company for their work.
Plant and Machinery/Equipment Investment: To calculate the overall investment, subtract the costs of pollution control, research and development, industrial safety equipment, and any other items indicated by RBI in a notification.
The DIC (Department of Corrections) location must be completed based on the business’s location. This section will be active and will only show an option if the district has the ability to have more than one DIC.
Suggested Read- udyam registration portal
Submit: When you press the “Submit” button, the acknowledgment number is generated.