Udyam Aadhar Registration

UA - Udyam Aadhar (MSME Certificate)

1. Introduction

The Ministry of Micro, Small and Medium Enterprises (MSME) issues an e-certificate known as the Udyam registration certificate to MSMEs in India. The Udyam registration certificate is also known as the MSME registration certificate.Udyam Aadhaar is a unique registration mechanism for MSMEs introduced by the Ministry of Micro, Small and Medium Enterprises (MSMEs) It enables MSMEs to register themselves for free and obtain the Udyam Aadhaar number.

2. Features of Udyam Registration Certificate :

  • A permanent registration number is provided to MSMEs on the Udyam registration certificate.
  • The Udyam registration certificate is an e-certificate issued on the email of the entrepreneur once the registration is done online.
  • The Udyam registration certificate is valid till the existence of the enterprise; thus, it is not required to be renewed.
  • An enterprise cannot apply for more than one MSME registration. Thus, all activities of the enterprise are covered in the Udyam registration certificate.
  • A Udyam registration certificate is necessary to obtain loans from banks and benefits provided under various schemes to MSMEs.
  • The Udyam registration certifies that an enterprise is covered under the MSME category.

3. Benefits of Having a Udyam Registration Certificate:

  • Due to MSME Registration India, bank loans become cheaper as the interest rate is very low, around 1-1.5%, much lower than interest on regular loans.
  • It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years.
  • Once registered the cost of getting a patent done, or the cost of setting up the industry reduces as many rebates and concessions are available.
  • MSME registration helps to acquire government tenders easily as Udyam Registration Portal is integrated with
  • Government e-Marketplace and various other State Government portals which give easy access to their marketplace and e-tenders.
  • There is a One Time Settlement Fee for non-paid amounts of MSME.
  • The MSME registration will help the MSMEs in availing the benefits of government schemes such as the Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Public Procurement Policy, Protection against delayed payments, etc.
  • MSMEs are eligible for priority sector lending from banks
  • MSMEs are eligible for prMSMEs get the benefit of a government security deposit waiver that is helpful while participating in e-tendersiority sector lending from banks.
  • Any number of activities, including service or manufacturing or both, may be added or specified in one MSME registration.
  • Barcode registration subsidy.
  • Exemption scheme from direct taxes.
  • ISO certification fees reimbursement.
  • Electricity bills concession.
  • Special consideration in International trade fairs.

4. Eligibility Criteria

In order to be eligible for Udyam Aadhar, enterprises must fit into the following classification outlined by the Ministry of Micro, Small and Medium Enterprises. This is on basis of their investment (in plant and machinery or equipment) and turnover.
Enterprise
Investment
Turnover
Micro
Up to Rs. 1crore
Up to Rs. 5crore
Small
Up to Rs. 10crore
Up to Rs. 50crore
Medium
Up to Rs. 50crore
Up to Rs. 250crore

5. Documents Required

  • Bank account details, and business address proof, property tax receipt or electricity bills.
  • Authorized signatory of the enterprise or Aadhar number of the owner
  • PAN card of the enterprise.

6. Frequently Asked Questions (FAQs)

For all MSME’s Udyam Aadhar is now mandatory
No, it is Mandatory to start a micro, small and medium enterprise you must register with Udyam Aadhar.
Protection against delayed payments, ISO certification, credit guarantee scheme, credit linked capital subsidy scheme etc.

8. Conclusion

Micro Small and Medium Eenterprise (MSME’s) contribute significantly to the country’s GDP and employment opportunities. The Indian government has introduced several schemes and initiatives, including the Udyam Aadhar Certificate, to promote the growth of MSME’s. Which aims to simplify the process of business registration.

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