The Udyog Aadhaar is a unique identification number issued by the Ministry of Micro, Small and Medium Enterprises, Government of India for medium and small businesses. The Udyog Aadhaar was established in an effort to make easy the procedural formats that entrepreneurs had to go through in order to register their business. Udyog Aadhaar offers various profits to the MSMEs under the MSMED Act 2016 such as waiver of stamp duty, the collateral-free loan from the bank, registration fee, concession in electricity bills, the exemption under direct tax laws and also exemptions while applying for government tenders and so on.

Just the way businesses need to be registered with the government depending on their level of business; in the same manner, small and medium scale industries are expected to register under small, micro and medium enterprises (MSMEs).

Prior to the introduction of Udyog Aadhaar, this procedure used to be time-consuming, lengthy, and offline. Nowadays it is online too. Udyog Aadhaar is a Twelve digit government identification exclusive number which is issued by the Ministry of MSME. It has come into being, to bring forth ease of working and non-complicated procedures format for small and medium scale industries and organizations. There are innumerable benefits and business owners who register their business here can take advantage of them.

Most state governments provide Udyog Aadhaar registered companies subsidies on all things from tax to power and entry fees to estates and industrial corridors. Companies in its growing years also get exempted from excise taxes, sales taxes, and some direct taxes. Moreover, the central government announces schemes particularly targeted at small, micro, and medium businesses from time to time like the Credit Guarantee Fund Scheme for Small and Micro Enterprises (CGS) that was announced recently. A Udyog Aadhaar registration also opens up a whole lot of advantages from banks. MSME’s get preferential rates of interest on loans, get quicker loan approvals, priority sector lending, etc.

Almost every sort of business entity can acquire Udyog Aadhar, be it, one-person company, Proprietorship, Partnership Firm,, limited company, production company, private limited company, co-operative societies, limited liability partnership, or any association of persons or any other undertaking. But, there is a set of norms that an entity has to meet in order to be classified as a small, medium, or micro-enterprise for requiring the MSME registration. If you own an enterprise or company, then you must check if your entity can be classified as a small, medium, or micro-industry under the norms defined in the MSME Act, 2006 for checking your eligibility.

Registration Process

There are two methods of registering Udyog Aadhaar i.e; offline and online.

Online registration process: The Ministry of MSME has a one-page Udyog Aadhaar registration form which can be filled online. It is zero costings, paperless, and provides an instant registration. The steps for online registration are mentioned as under:

1. Visit the Udyog Aadhaar Website.
2. Enter the valid details of the individual’s Aadhaar number in case of a partnership. In the case of a company, the Aadhaar number of the authorized signatory applicant should be given.
3. On submitting the form, you will receive an OTP on the registered mobile number linked with the Aadhaar card. Enter that OTP details and proceed further to fill the form.
4. The personal information of the applicant will be required while filling the Udyog Aadhaar form. It must include – Aadhaar number, name of the owner (then click on ‘validate Aadhar’), social category, gender, physical fitness, name of the enterprise, type of organization, date of business commencement, PAN number, location of the business, previous registration, bank account details major area of business activity, NIC code, number of employees, investment in machinery/equipment, DIC, etc.
5. Upon filling all the details, go through it again to check for any mistakes and then click on ‘Submit’.
6. An OTP will be sent to your registered phone number which needs to be entered.
7. Enter the code on the screen for the final submission of the form and the online registration will be complete.

Offline registration process: The process to apply for a Udyog Aadhaar can also be done offline by following the steps as mentioned below:

1. Apply for an Aadhaar card if you do not have one.
2. Until you receive your Aadhaar card, the Udyog Aadhaar application can be made to the District Industry Center (DIC) or MSME-DI.
3. You will be expected to submit the following documents to the DIC or MSME-DI: Aadhaar Enrollment ID slip or a copy of its request made for enrollment and any valid address proof.
4. Fill out the physical form carefully and double-check for errors.
5. Submit the duly filled form to the DIC or MSME-DI, and your application for registration will be complete.

Documents Required

The following documents are required for Udyog Aadhar Registration which is mentioned as below :

1. Aadhaar Number
2. Name of Owner/Promoter
3. Category
4. Business Name
5. Type of Organization
6. Address
7. Date of Commencement of business
8. Bank Details
9. National Industrial Classification (NIC) Code
10. Number of persons employed
11. Nearest District Industry Center (DIC)
12. Key areas of activity of the business

Udyog Aadhaar Memorandum (UAM)

Udyog Aadhaar Memorandum (UAM) is a free one-page self-declaration registration form. Upon form submission, the Udyog Aadhaar Acknowledgement is mailed to the email address given by the applicant. This email will state the exclusive Udyog Aadhaar Number (UAN). One Aadhaar number can file numerous UAM.

All existing MSMEs who have already filed for Entrepreneurship. Memorandum – I/II or hold the registration for a small scale industry before the MSME Development Act, 2006 came into being, does not require filing a UAM but is allowed if desired.

Verification of Udyog Aadhaar Memorandum (UAM)

The process to verify the UAM can be done by following steps as mentioned below:

1. Visit the official UAM Website.
2. Enter your UAM number.
3. Enter the verification code which is sent to your registered mobile number.
4. Enter the captcha and click on ‘Verify.

Registration Cancellation Process

Following is a step-by-step process for registration cancellation

1. Udyog Aadhar Registration Center: The first step is to find the Udyog Aadhaar Center which is generally a District Industrial Center. Every state usually has a center. The businessman has to get the registration cancellation form. If the business owner is not able to find the address, he can look for the same in the Udyog Aadhar Registration Certificate. He can get other contact details as well from there.
2. Application for Cancellation: The second step is to write an application to the Center specifying the details of the business activities whose registration you want to cancel. It is also necessary to specify the reason for the same.
3. Required Documents: There is no particular list of documents required for registration cancellation. However, the business owner must require the cancellation form, original Udyog Aadhaar Card, bank details, etc. it is suggested to keep the original as well as photocopies of these documents,
4. Acknowledgment: If the application and other documents fulfill all the requirements, the businessman can request an acknowledgment letter from officer-in-charge, District Industrial Center. This acknowledgment letter is important and can be required in the near future.