A Udyog Aadhar, also known as Aadhar for business, is a 12-digit unique number used for identification purposes. This unique number is provided by the Ministry of Micro, Small, and Medium Enterprises (MSME), Government of India to the SME (Small & Medium Enterprises). However, in August 2020, the MSME released its notification and provided information on the existing Udyog Aadhar Memorandum (UAM) and regarding the new MSME Registration known as Udyam Registration.
What is Udyog Aadhar Memorandum (UAM)?
UAM is a one-page registration process to register under MSME and contains all the vital information of applicant details like self-certify all business details like a bank account, details, promoter, etc. It’s a unique identification number mainly used for MSMEs.
Why is it necessary to migrate from Udyog to Udyam Registration?
Udyog Aadhar Registration provides the companies with many benefits from the Government, such as being able to get loans at low rates of interest, getting funding from the Government, & many other benefits/advantages that help companies or enterprises in various ways. The old Udyog Aadhar has been replaced by a new & improved system name Udyam Aadhar. The Ministry of MSME notified that all the MSMEs are no longer valid after 31st March 2022, which means that the companies or enterprises that are already registered for Udyog Aadhar can no longer avail of the benefits without Udyam Aadhar Registration.
According to the official notification, the existing MSMEs registered under the EM (Entrepreneur Memorandum Part-II or UAM (MSME/Udyog Aadhar) is valid till December 2021 (last year). So, migrating from Udyog to Udyam Registration becomes important. The existing enterprises under EM- Part II or UAM will have to register again on the Udyam Registration website.
Benefits of Udyam Registration
Following are some important benefits of Udyam Registration:
- Easy to get License, Registrations and Approvals: This registration has made it very easy for enterprises with MSME Certificates to obtain Approvals, Licenses & Registrations in any field for their business from the respective authorities as they can produce the MSME Registration Certificate.
- Exemption under Direct Tax Laws (DTL): Enterprises that have Udyam Registration can enjoy Direct Tax Exemption in the starting year of business, as mentioned under the Scheme by the Government & depending on business activity.
- Concession in Electricity Bills: Enterprises that have Udyam Registration Certificate can avail of Concession on electricity bills by simply making an application to the electricity department along with the Registration Certificate.
- Excise Exemption Scheme: Enterprises or Companies that have MSME Registration or Udyam Registration can enjoy Excise Exemption in the beginning year of business, as mentioned in the Excise Exemption Scheme by the Government of India and depending on business activity.
- Reduction in Rate of Interest (RoI) from Banks: The rate of interest for the enterprise or company that has MSME Registration is lower as compared to other enterprises.
- 50% Subsidy for Patent Registration: Enterprises or Companies that have MSME Registration or Udyam Registration Certificate can avail 50% subsidy for the Patent Registration by making an application to the respective authority.
- Subsidy on NSIC Performance & Credit Rating: Enterprises that have MSME Registration can avail of subsidy on NSIC Performance & Credit ratings as prescribed under the Scheme.
- Reimbursement of ISO Certification: Enterprises or Companies that have MSME Registration or Udyam Registration Certificate can reimburse ISO Certificate Expenses along with MSME.
Vital Documents Required to Migrate from Udyog to Udyam Registration
Following are some essential documents required to migrate from Udyog to Udyam Registration:
- The owner’s name of the enterprise and Aadhar Number;
- Name of the organisation or business you want to start;
- Type of organisation or enterprise that you own;
- Details of your enterprise (previous registration);
- National Industrial Classification (NIC) Code;
- Current activities of your firm;
- PAN number & the overall expenditure made by the entrepreneur in the organisation.
- The total number of employees or workers employed at your organisation segregates into gender;
- Email id and mobile number of the entrepreneur;
- Current address & account details of the owner.
Procedure to Migrate from Udyog to Udyam Registration
Follow the step-by-step procedure to migrate from Udyog to Udyam Registration as mentioned below:
Step 1: First, you need to visit the official website of the Udyam Registration.
Step 2: Then, you have to click on “For those already having Registration as UAM”. On the home page, various options are given for different companies or enterprises depending on whether they have already incorporated using Udyog, whether they have registered earlier via any assisting filing or if they are new to Udyam & are registering for the first time. Having registered earlier with Udyog Aadhar, then select this option.
Step 3: Fill in your UAN (Udyog Aadhar Number).
Step 4: After providing the number, you will be provided with 2 verification options, out of which you need to choose one option as per your convenience. The 1st option is to verify your account using your mobile number and the second option is to verify the account using your email id. The main purpose of this step is to identify your account and to ensure no misuse of your account is done.
Once this step is completed, the system will verify all the details given by you. If no issue is found & your Udyog Aadhar is authenticated successfully, after some days, you will get a message to revisit the site for the completion of the process. After this, you shall get your Udyam Certificate. Once your company gets the Udyam Aadhar Certificate, it can be eligible to avail of the benefits associated with it.
After discussing the process to migrate from Udyog to Udyam Registration, it is necessary for all the enterprises to get Udyam Certificate because without migrating to Udyam, they cannot continue their business in India.
Read our Article:MSME Udyam Registration Portal: Everything you Need to Know