{"id":20358,"date":"2020-11-26T14:22:53","date_gmt":"2020-11-26T08:52:53","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=20358"},"modified":"2020-11-26T14:30:04","modified_gmt":"2020-11-26T09:00:04","slug":"implementation-of-udyog-aadhaar-memorandum","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/implementation-of-udyog-aadhaar-memorandum\/","title":{"rendered":"Implementation of Udyog Aadhaar Memorandum: A Complete Overview"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Micro, Small &amp; Medium Enterprises (MSME) sector has been\nconsidered as the primary contributor to the Indian economy. The Micro, Small,\nand Medium Enterprises Development Act (MSMED Act) come into the existence in\n2006. Previously, the SSI (Small Scale Industry) certification is used to be\ngranted by the relevant District Industries Centres (DICs). In this write-up,\nyou will come across some important fact in regards to the implementation of\nUdyog Aadhaar Memorandum. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/implementation-of-udyog-aadhaar-memorandum\/#Historical_Context_of_MSME_Registration\" >Historical Context of MSME Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/implementation-of-udyog-aadhaar-memorandum\/#Implementation_of_Udyog_Aadhaar_Memorandum\" >Implementation of Udyog Aadhaar Memorandum<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/implementation-of-udyog-aadhaar-memorandum\/#Key_Points_Regarding_Udyog_Aadhar_Memorandum\" >Key Points Regarding Udyog Aadhar Memorandum<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/implementation-of-udyog-aadhaar-memorandum\/#Updated_Procedure_for_MSME_Registration_2020\" >Updated Procedure for MSME Registration 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/implementation-of-udyog-aadhaar-memorandum\/#Benefits_of_MSME_registration\" >Benefits of MSME registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/implementation-of-udyog-aadhaar-memorandum\/#_Conclusion\" >&nbsp;Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Historical_Context_of_MSME_Registration\"><\/span>Historical Context of MSME Registration <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>But after 2006, the <a href=\"https:\/\/corpbiz.io\/learning\/ssi-registration-procedure-and-objectives\/\"><strong>SSI registration<\/strong><\/a> was replaced by the Entrepreneurs Memorandum (EM-I) and Entrepreneurs Memorandum (EM-II). The EM-I was available to such entities that are about to start the business operation and EM-II is accessible to those who have already started the business operation.<\/p>\n\n\n\n<p>The <strong>MSME 2006 Act<\/strong><sup><a href=\"https:\/\/msme.gov.in\/circulars\/msme-development-act-2006-rules-26-september-2006\"><strong>[1]<\/strong><\/a><\/sup> also broadened the definition of entities. Nowadays the term &#8220;entities&#8221; is being referred to as \u201centerprises\u201d in place of \u201cindustries\u201d that bring the service sector under its ambit. Such memorandum was supposed to be filed with the respective District Industries Centers (DICs). As time progresses, some States\/UTs computerized the EM filing process, meanwhile, the rest continued with the conventional way of filing.\u00a0In 2014, the Ministry of MSME came up with the EM portal in association with States\/UTs. Since then this IT platform has been adopted by fourteen States\/UTs for EM filing. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Implementation_of_Udyog_Aadhaar_Memorandum\"><\/span>Implementation of Udyog Aadhaar Memorandum<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To further ease out the process of registration, the\nMinistry of MSME in association with all the stakeholders has announced Udyog\nAadhaar Memorandum (UAM) on 18th Sep 2015. UAM only seeks an Aadhaar Number\nfrom an applicant for making an application. UAM has made the registration a\nlot easier and less painstaking by excluding unnecessary paperwork and\napplication fees.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Points_Regarding_Udyog_Aadhar_Memorandum\"><\/span>Key Points Regarding Udyog Aadhar Memorandum<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The ministry of MSME has announced a one page Udyog Aadhar Memorandum (UAM) via a Gazette of India on 18th Sep 2015 to ease out the process of registration of MSMEs.\u00a0<\/li><\/ul>\n\n\n\n<ul><li>The Udyog Aadhar Memorandum (UAM) supersedes Memorandum Part EM I &amp; EM      II.\u00a0<\/li><\/ul>\n\n\n\n<ul><li>Filling of Udyog Aadhar Memorandum (UAM) is optional for MSMEs. However, it is mandatory for Medium class enterprises.\u00a0<\/li><\/ul>\n\n\n\n<ul><li>The units having SSI registration certificates before the implementation of the Udyog Aadhaar Memorandum or EM-II Memorandum would be able to access various schemes launched by the Government of India.\u00a0<\/li><\/ul>\n\n\n\n<ul><li>UAM is optional for entities under EMII registration.\u00a0<\/li><\/ul>\n\n\n\n<ul><li>The memorandum is accessible to only those entities which are      functional.\u00a0<\/li><\/ul>\n\n\n\n<ul><li>SSI registration and Entrepreneurship Memorandum-If (EM-II) has been replaced by Udyog Aadhar Memorandum (UAM) for all purposes. State or central government regulatory bodies, financial institutions, and banks should accept Udyog Aadhar Memorandum (UAM) for all purposes. Earlier it was necessary to obtain EM-II registration before establishing an enterprise. Applicants were required to make an application for building plan approval from relevant bodies, permission from Pollution Control Board, or seeking credit from a financial institution or banks to establish the enterprise along with a copy of EM-I.<\/li><\/ul>\n\n\n\n<p>UAM registration is granted after an entity commences\ncommercial operations. Authority has stopped granting registration before\nestablishing an entity. The EM1 registration does not exist anymore.&nbsp;<em><strong>There\nis no counterpart document to EM-I.<\/strong><\/em><\/p>\n\n\n\n<p>Therefore, the regulatory bodies, utilities, tax\nauthorities, local bodies, and banks should not demand EM-I from applicant\nseeking the establishment of a new enterprise.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Updated_Procedure_for_MSME_Registration_2020\"><\/span>Updated Procedure for MSME Registration 2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Step 1: Visit the <a href=\"https:\/\/corpbiz.io\/learning\/udyog-aadhar-registration-process-documents-and-fees\/\"><strong>Udyog Aadhar Registration<\/strong><\/a> portal for the registration.<\/p>\n\n\n\n<p>Step 2: Enter your 12-digit Aadhar Number on the new page\nalong with the Name of the entrepreneur.&nbsp;<\/p>\n\n\n\n<p>Step 3: Tap on the \u201cValidate &amp; Generate OTP\u201d button and\nenter the OTP to get verified. After the verification, the online form for\nregistration will be visible on your screen.&nbsp;<\/p>\n\n\n\n<p>Step 4: In the application form, fill up the following details:\u00a0<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"1024\" height=\"768\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Updated-Procedure-for-MSME-Registration-2020-1024x768.png\" alt=\"Procedure for MSME Registration 2020\" class=\"wp-image-20360\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Updated-Procedure-for-MSME-Registration-2020-1024x768.png 1024w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Updated-Procedure-for-MSME-Registration-2020-300x225.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Updated-Procedure-for-MSME-Registration-2020-768x576.png 768w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Updated-Procedure-for-MSME-Registration-2020.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>Step 5: Click on the &#8220;submit&#8221; button to generate\nan OTP. You will receive the OTP on your email id mentioned by you in the\nregistration form.<\/p>\n\n\n\n<p>Step 6: Enter Aadhar OTP for the second time and then tap on\nthe &#8220;Final Submit&#8221; button.<\/p>\n\n\n\n<p>Step 7: After completion of the registration process, you\nwill come across an acknowledgment number on your email.&nbsp;<\/p>\n\n\n\n<p>Step 8: Upon verification of the details, the portal will generate the UAM number for your business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_MSME_registration\"><\/span>Benefits of MSME registration <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Some of the prominent advantages\noffered by the State\/Central government to the entities registered under the\nUAM registration&nbsp;<\/strong><\/p>\n\n\n\n<ul><li>To encourage SSIs and micro-enterprises, the\nSEZs are needed to allocate ten percent space for SSIs.<\/li><\/ul>\n\n\n\n<ul><li>Under the MSMED Act, protection is granted\nregarding the timely payment for goods &amp; services by buyers to MSMEs.<\/li><\/ul>\n\n\n\n<ul><li>Moreover, the government is constantly striving\nto encourage the sector through policies regarding preferential purchase\npolicy, preferential access to credit, etc.&nbsp;<\/li><\/ul>\n\n\n\n<ul><li>The government has been offering a plethora of\nschemes as well as incentives in terms of financing, marketing, training, and\ntechnical up-gradation to the functional MSMEs.&nbsp;<\/li><\/ul>\n\n\n\n<ul><li>As per Trademark rules 2017, special provision has been laid down for the SSIs and micro industries. Under schedule, A of Trademark rules 2017, the fees related to the filing of a<a href=\"https:\/\/corpbiz.io\/trademark-registration\"><strong> trademark registration <\/strong><\/a>application has been slashed to 50% for the MSMEs.<\/li><\/ul>\n\n\n\n<ul><li>Entities under <a href=\"https:\/\/corpbiz.io\/msme-registration\"><strong>MSME registration<\/strong><\/a> can easily avail of concessions under Performance credit rating\u00a0<\/li><\/ul>\n\n\n\n<ul><li>MSME registered enterprises would be eligible to\navail of subsidy up to 15% under CLCSS i.e. credit linked capital subsidy\nscheme<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"_Conclusion\"><\/span>&nbsp;Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Udyog Aadhar memorandum is web-based declaration form that changes the MSME registration requirement from ground up. The implementation of Udyog Aadhar memorandum is a ground-breaking step from the government in the light fact that not all MSMEs are accustomed to technicality of the registration process. By excluding additional paperwork, the registration has now become surprisingly easier. Connect with <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz <\/strong><\/a>expert to avail more information on the same. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/public-procurement-policy-for-msme\/\">Everything you need to know about Public Procurement Policy For MSME\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Micro, Small &amp; Medium Enterprises (MSME) sector has been considered as the primary contributor to the Indian economy. The Micro, Small, and Medium Enterprises Development Act (MSMED Act) come into the existence in 2006. Previously, the SSI (Small Scale Industry) certification is used to be granted by the relevant District Industries Centres (DICs). In this [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":20362,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[176],"tags":[1251],"acf":{"service_id":"71"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":3752,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/20358"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=20358"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/20358\/revisions"}],"predecessor-version":[{"id":20374,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/20358\/revisions\/20374"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/20362"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=20358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=20358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=20358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}